Wealth and Status: The Asset Dilemma

We've noticed that even today, the super rich often focus on acquiring productive assets, while the middle class and those aspiring to it tend to splash out on flashy status symbols. Take, for example, someone who owns a factory and makes millions but drives a regular car. Meanwhile, an employee might lease a fancy car to look rich, but their actual net worth is lacking. Social media shows off a lot of millionaires and billionaires, yet many of them remain hard to spot. Research highlighted in books like The Millionaire Next Door reveals that numerous wealthy individuals live modestly and prioritize building their assets rather than showcasing them.

IMO, there has been a generational change and among the new rich young people austerity is no longer fashionable to obtain more wealth: I would say that the rich young people like to enjoy and exalt their wealth. The book you are talking about is nothing more and nothing less than thirty years ago, and although I agree to a certain extent with the thesis you propose, there are more contemporary works that deal with this same subject. But considering that Rich Dad Poor Dad was also published around that time and it is still a bestseller, maybe you're right. Let's see what other colleagues think about the subject.

Honestly when it comes to real wealth is not always visible or on display. You see alot of people that really has money focus more on how to to protect their financial future and builds assets rather than showing off lifestyle. But when it comes to social media most times they can give misleading image or false impression, but what people will see online won't always reflect real financial health. So is better that wealth is being judged by long term value and stability and not just for appearance alone.

I think you have already said something very meaningful that there is now a "generational change" and that is the fact. Back then most wealthy people invested in production/manufacturing mostly and invested in gold which was part of how to access wealth. More remotely, they invested in slaves, became feudal lords. You can easily ascribe wealth or feared someone if they came from royal family. But things have really changed and probably books like rich dad poor dad by Robert kiyosaki is no longer part of modern day reality. The truth is in certain countries, coming from a royal family is fast fading away because the youth now have better opportunity to ascribe to whatever status they want in life, courtesy internet. The internet is the "straw that broke the camel's back". Anyone has the opportunity to become rich and wealthy now without physically producing anything. Well, whether the internet resources is an unfortunate incident that isn't contributing physically to the economy but it gives the society a new phase of life, happiness and joy while government also generate tax from them, the skit makers, comedians etc. And they are now swimming in wealth. We are now in the era of talent explosion to richness. Things have changed and change they say is constant. In current past some wealthy people hardly invest in bitcoin but they don't have choice now. So even with bitcoin investment, social status and richness can be uplifted. And regards to showing off or displaying wealth, that is relative. That depends on personality involved. But again, the secrecy or hidding status is now played down. Many rich people are now living their lives to the fullest. Probably, the reality of short life expectancy is now staring everyone in the face because of the so many troubles, bad health and diseases around.  People now want to enjoy their money at least while they are still alive.

Actually being rich is not the same as looking rich, many people spend a large portion of their income on things that look good to others but don't really add much to their wealth.  And those who are truly wealthy understand that depreciating assets like luxury cars or expensive things, only empty their pockets, while productive assets generate more money in the long run. To me real wealth is something that creates value for you on a regular basis. How financially secure you are in the long run is more important than how rich people think you are.

For the real rich, there is nothing for them to prove how rich they are. And they're also being careful for not showy. Compared to someone who's happy to flex their wealth, they're going to show it to the public of what they have earned and what they have. But look behind them, most of those luxury things they own are from loan. There's nothing about loan but what I mean is that, they're only getting that to impress people.

Let's be honest the wealthiest people are actually leaving the wealthiest lifestyle. I don't know why we are trying to make a narrative that the wealthy people are being modest when that's not the case. Yes the wealthy people are building more opportunities and trying to multiply their wealth but they are also enjoying their best life buying luxury items an ordinary person can only dream of. It's hard or near impossible to be that rich and not actually enjoy the value of your money.

I think live a simple life doesn't depend on social status or wealth, it is a life choice and philosophy. There are many rich people choose to live simple in other hand there are people with low income which like flexing and try to get social status and social recognition by playing luxurious. Simply said, simple soesn't mean poor and live luxurious doesn't mean rich. Thats way nowdays we can find trillionaire using ordinary car and we also find lower or midlle class income have a very consumerist lifestyle. Previously consumption was primaly about fulfilling needs, after that prosperity make consumption for fulfilling wants such as for comfort, lifestyle, seld identity, experiences. Nowdays i found phenomenon consumption for human solidarity and bring social impact, many yopunger generation are more semsitive to their surrounding and they understand that every cent they spent has econnomic impact to other. But frankly speaking many don't have financial literacy.

The reality is that there are still people who want to look good in the eyes of others in order to consider themselves capable and rich by looking at luxury goods, even though they don't care that the value of the goods has decreased. They don't even think about productive assets, for example, small investments that can be started from small, let alone with large capital businesses, maybe they won't do it. Everyone has a different perspective even though what they see is more consumptive, the important thing is how we don't do that, be an ordinary person, don't look rich, the important thing is to have productive assets to generate a good source of income, at least that is the dream of many people.

Did you also have experience of this from an average class or lower classes that some moments huge amount of monies gets into your account you don't feel hungry to eat food? Instead just a cup of coffee is okay for the day. Maybe going on tourism and have some experiences like seeing the movies or relaxing with a bottle of wine can satisfy your taste and feel the vacuum. But when there is no money, their primary desires is just how to eat chickens, burger or any delicious and yummy delicacy but when the money comes, the taste dies. Some would also want to satisfy the urges. I am trying to say here that when you have money especially when you have enough cash flow, there will be some things that will no longer be of your interest to spend on.

It's the same here in my country. Those who tend to show off aren't really wealthy. While the truly rich must have their own private planes and resorts and yachts, too, it seems it isn't their thing to brag about them on social media. They tend to keep their family and personal moments private. On the contrary, many of those who are salary-dependent, traveling on borrowed money, and have unpaid debts from friends are the ones who proclaim to the whole world that they're able to buy this and that expensive stuff, been to this and that luxurious resort, and so on.