Value Financial Security over MaterialismWealth Principles
Our society often regards money as something that can or should be used mostly to increase material standing. Let’s redefine material standing, the purchase of luxury goods or services, as visual standing. We use our money to look good via materialism and only seek financial security second. You should value financial security over society’s materialism.
To reach wealth, the habitual notion that others should see our wealth must be discarded. The reason for this is simple. Most purchased luxury materials decline in value over the long term and do not return actual wealth. They’re neither high-end nor low-end work; they absorb both and all potential future earnings that both work forms could return if invested.
Money and wealth, on the other hand, are used to secure and insure life against adverse events. This is far more valuable than purchasing the opinions and impressions of others by flashing luxury goods. Maintaining your capital in assets over items allows rapid redistribution of wealth into differing assets, accounts, currencies, or even countries. You can sell out of investments and transfer liquidity if you anticipate a market, account servicer, currency, the central bank, or nation’s collapse. If your wealth is held in items, you will sell them at a loss until you have recovered enough currency to solve your issues.
This isn’t an order to abstain. As you begin to gain wealth you should focus purely on accelerating gains. As you move into the upper middle class and above, you should allow yourself to purchase luxury goods but avoid canceling out your investment gain. But all materialistic spending should fit naturally into your budget. You should not break your budget or stress your budget in any way to purchase luxury goods. That his and hers Bentley/Ferrari combo must fit naturally within your 15% family transportation budget to be an allowable and logical purchase, along with their insurance, upkeep, and fuel costs.
Those who show off while gaining wealth are trading future wealth for current appearance. This is a bad trade unless you already have substantial savings and investments, as well as all debts cleared and expenditures covered. Consider it this way: Cash is worth more than the item both in the short term (items begin to depreciate the moment they are used) and the long term (since they continue to depreciate), which obviously is the reason companies are willing to trade goods for money to begin with.
Secure both the present and future by investing your money until your wealth level is excessive enough to allow spending on luxury items. Let others buy into materialism at the cost of long-term success, and regard material luxury items they wear as outflows of wealth, not indicators of status. Most of these will depreciate over time, and create a drag on their actual wealth.
To assist yourself in gaining real prosperity, purchase luxuries that appreciate over time. Before purchasing a luxury item, look to see if this item actually appreciates (much like famous paintings and antique exotic cars do) and turn your luxurious splurge into an investment as well. This way you can receive luxury, appearance, and financial security at the same time.
Essentially: Regard luxury goods as outflows of wealth. If the luxury good appreciates over time, regard the luxury good as an investment. This helps you avoid bad purchases and increases your tendency to make smart purchase decisions.
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