RICH.. One word in the world which drives most of the people but in the race to be rich they often forget that whether they want to be really rich or just show that they are rich. Lot of people never become wealthy because they waste too much money on buying symbols of success that depreciate. They are more focused on looking rich instead of becoming rich. The first thing that we were taught about financial independence is that we should save first and then spend what ever is left. However, in the race to look rich, people spend first and then save if anything is left. In most of the cases, nothing is left to save. Expensive foreign trips, new mobile phone every year, a smart watch to match the mobile, air pods, new car, latest jewellery, etc. are a few things which can make one look rich but realistically one does not become rich.
Mr. Mukesh Ambani drives a Maybach because he is the Mukesh Ambani and not vice versa (he is not Mukesh Ambani because he drives a Maybach).
On one hand, we have people like Mr.Azim Premji, India’s second richest man, who drove a second hand Mercedes Benz which he apparently bought from one of his employees and South Indian megastar Rajnikant who drives a Toyota Innova. Whereas on the other hand we have people with an annual income of INR 20-25 lakhs driving high end cars like Audi, BMW etc. These are the people who want to look rich and not to become rich.
Whenever you want to buy something, stop for a moment and think if it will actually make you rich or merely make you look rich. It is important to invest or buy things which appreciate and not which depreciate. You should not spend on a new car or a new mobile or buy a house which you can’t afford just because 3-4 people in your friend circle have it. They can buy it either because they have enough money or they are people who just want to look rich. In either of the cases, you should not follow them.
Today, most of the auto manufacturers are offering a huge discount on purchase of new vehicles. People will go and buy a Maruti S-cross because it is available at a discount of INR 1 lakh but won’t buy Maruti stock which is available at a 50% discount. If there is a sale on iPhone, say, of 10% , people will line-up to buy it but won’t buy stocks like Page Industries or Eicher Motors which are down 50% or won’t invest in mid-small cap mutual funds which are down 25%-30%. In a rush to look successful we spend money on material goods or luxury items which will be outdated in a maximum of 1-2- years. We sell our 2-year-old mobile phones at 50% price but we can’t digest a 10% temporary fall in our portfolio. All these are perfect recipes of not becoming richer.
Think about buying car company’s stock instead of buying the new car. It’s better to own shares in the jewellery company instead of having a massive jewellery collection. Think like an owner, not a consumer. Your goal should be to become rich and not just look rich. Buy whatever you want but only after you have invested for your child’s future and more importantly your future.
“Too many people spend money they earned, to buy things they don’t want, to impress people that they don’t like.” ― Will Rogers
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