Are You Rich or Just acting Rich?

Are you rich or just acting rich? I know all your friends are spending the summer in the Hamptons and you just want to fit in or maybe you are trying to impress your girl. Whatever the reason, you do not have the break the bank to look wealthy and it is not what you think anyway. They tend to dress in classic clothes. They dress for comfort!

It goes way beyond what clothes they wear. It starts with a style that is classic and they just build from it. It may be classics from Brooks Brothers or Gap, mixing expensive with cheap to build a wardrobe. It fits well and does not go out of style. It almost looks like the old prep school uniform . They do not dress to impress or to show off their wealth. Emphasis is on good quality and comfortable clothes. There is no reason to wear their wealth in their clothes!

Rich/acting rich?

Rich own their home with small or no mortgage. Acting rich goes for the 100% mortgage of the mansion.

Rich buys a modest car with a small or no loan. Acting rich leases the most expensive car and replaces often to make an impression.

Rich puts effort in career or business to generate more income. Acting rich just spends to create impression of wealth.

Rich invests for the future. Acting rich spends for today to accumulate things or status symbols to indicate wealth.

Rich do not buy with comparison shopping or making a value judgment. Acting rich just buys based on looking wealthy.

Rich do not buy a home they cannot afford. Acting rich will often buy bigger homes, expensive cars and borrow the money to maintain an opulent lifestyle.

Rich own their toys such as boats, cars, vacation homes and other trappings of wealth. Acting rich borrow to their limit to just maintain their allusions!

Rich have priorities for their expenditures and it is not to accumulate things. Acting rich do not!

Rich people are frugal! Acting rich will spend more than they earn just have status symbols of wealth.

Rich people have savings, investments and live below their means. They plan their financial future! Acting rich are living in the moment because they nothing left after they bought (usually financed) all those symbols of wealth.

Rich people have cash to take advantage of opportunities. Acting rich just have possessions (designer clothes, luxury cars, mansions, expensive jewelry, etc).

Final thoughts

There is a huge difference between being rich and acting rich. I live in the epicenter of wealth and people who just act rich. It is easy to act rich, you lease a luxury car and live in an apartment in Beverly Hills. You look rich, but you really have no assets. Is it important to look rich? Apparently, some people think so! I grew up with very rich people who never flaunted their wealth. They lived in nice homes and drove nice cars, but hardly the most expensive. The rich are different, they have money. Are you rich or just acting rich?

Photo by:  Flickr