5 Signs You MIGHT Be Fake Rich | The Table With AO
Great video on the topic of personal finance. It was a good reality check for me as well.
Here are some of my takeaways from watching the video above:
Having wealth is not about looking rich. It's not about wearing $1,000 shirts or bag, or driving a $100,000 car. Having real wealth is about having the freedom to do what you want to do, to live the life you want to live, to take care and leave your family a lasting legacy. And you do this by not being a slave to debt.
One sign that you might be fake rich, is wearing expensive clothes but not having enough money in your savings account.
What's the point of buying an expensive car? To look good in front of other people? Those people, who you probably don't even know, are not going to help you pay your car payment. They're not going to help you pay for gas for your car. They're not going to help you pay for your car's maintenance and repairs. So once again, what's the point of buying an expensive car? Just so you can look good in front of other people?
Buy the car that you want, but save money to buy it outright. Don't finance the car, because that means you actually cannot afford it.
^ I have to say, this is perhaps the hardest challenge in personal finance; buying a car with cash.
A Credit Card can also be thought of as a Debt Card. And getting rewarded with Credit Card Reward Points are akin to being rewarded with debt; because you could only get them by using a Credit Card.
For instance, free airline miles on credit cards are not really free, considering the fact that you actually have to buy something using a credit card, thereby acquiring debt to get your free airline miles.