This may or may not be news to you but not everyone you see driving around in
expensive cars or sporting fancy watches are as rich as they appear to be and in
this video i'm gonna be sharing with you seven signs that you're fake rich so you
can figure out firsthand who around you is truly all they're made out to be sign
number one you constantly tell others about the things you own
first of all the truly rich do not create wealth to impress or intimidate
others some did it for the freedom others just wanted to do great things
and so on no genuinely wealthy person has chosen to create wealth for the sole
purpose of bragging so why would you keep telling others about the things you
own unless you are falsely rich first ask yourself why do you feel the need to
tell people about the things you own what can you gain from this is it
positive or negative energy fake people who are obsessed with talking about how
much they have are usually lacking in some area of their life most of the time
they're jealous and insecure therefore they feel the need to use their
purported financial status or desired status to try to make others feel
inferior for example if you post all the fancy items you buy on social media then
chances are you fall into this category moreover people who throw around their
great gains and income into casual conversation who boasts that they can
buy a new car every two years are in the same class false rich if these are
actions you or some of you know are doing then chances are you are doing
this to fill a void within you the truly rich don't behave this way and are
usually more grateful for the things they own it's more respected to give to
others and help others than to gain a lot and flaunt it over and over again
there's nothing wrong with working hard and owning a lot but whenever i see
people brag about their money i wonder what they are over compensating for sign
number two you care more about the opinions of others than your own bank
balance this behavior usually leads straight to poverty and let me tell you
why the reason is your bank balance is not one of those things you can wish
away if it's negative which it will be if you're trying to live the life you
can't afford it will affect everything so how did the fake rich commit this
crime i'll elaborate in this video so keep watching as you know you should use
credit that is borrow money to buy assets that will generate more money in
the future this is called good debt on the other hand you're fake rich if you
take out such loans just to buy a big tv or a flashy car to show off to friends
these items generate no income depreciate quickly and leave you with a
loan with interest that you'll be spending the next little while paying
off in other words while trying to create a heightened impression of your
status you've put your balance into the red it's shocking how many people decide
to buy really expensive cars even though they obviously cannot afford them i
often wonder why anyone should feel the need to buy a new range rover while
still living in the wrong part of town the discrepancy between some houses and
cars parked outside is shocking during some of my travels i saw people living
in one bedroom apartments but owning rolls-royces
generally if you live in a hundred thousand dollar apartment you can only
afford to buy roughly a fifteen thousand dollar car anything above fifteen
percent is considered a lousy buy given your current financial capacity there's
nothing wrong in buying luxury toys but you should ensure that your net worth
and income are enough to cover the expenses if you don't follow these
general rules then you're probably a fake rich person trying to keep up with
the proverbial kardashians we're hurting your bank balance however
it will likely hurt you back sign number three you need constant validation the
fake rich constantly require the people's approval to live they thrive on
what others think of them and relish in the admiration they receive everything
they do is to impress those who are less than they are in their own mind and eyes
they spend more time trying to be seen as successful than actually putting in
the work that will take them from fake rich to real rich when you look at the
real rich they typically don't need anything from the people around them
they don't need to brag about their wealth in social media they don't need
to brag about the money they earn because they get their self-worth from
who they are and the things they've accomplished rather than what others
think about them they would much rather spend their precious time building their
businesses or seeking new job opportunities then decide which filter
will get them the most likes on instagram how the real and fake rich use
your time is radically different and is why their bank accounts also have stark
differences but if you ask me what really separates rich from the fake rich
is the latter only talk to talk but don't actually walk the walk they're
always talking about what great ideas they have but even with a ton of great
ideas nothing ever gets done because they lack the discipline to execute not
to mention they are also wasting precious garnering validation from those
they look up to which is a time sink if you ask me sign number four you only
talk about money talking to false rich people is actually dull because they
speak very little about anything but money often money they don't have they
always talk about their future financial success as if it were a parent but they
would be happy to throw it all away to join you if you tell them you are making
more money than they are these people are usually the first to mention the
price of an item and then explain why they bought it they talk about how they
will make money spend money and the costs one would think that for them to
delight in talking about money so much they would definitely have lots and
savings but the opposite is actually the case the false rich never save any money
every dollar that comes in is invested in their image and the way people
perceive them however as you know having money set aside for dark days or new
opportunities is a must this is probably one of the most significant differences
in the behavior of the rich and the poor fake rich people are inconsistent and
never know what to do with the money except to spend it on things that they
don't need or just to talk about it sign number five you share your income but
not your net worth a person who isn't truly rich might put his or her paycheck
on display for everyone to see but income does not equate to an enviable
net worth in a minute i'll explain what i mean by this so stick around let's use
an example of our friend elizabeth to tease apart income from net worth
elizabeth is a well-educated young woman with an office job that pays her a
hundred thousand dollars a year here's a summary of her assets and liabilities
along with her overall net worth residents four hundred thousand
emergency fund a thousand dollars retirement savings 401k is twenty
thousand dollars as you can see her total asset base is 421 000
now let's look at the debt she carries she has a mortgage of three hundred
thousand dollars credit card out of fourteen thousand dollars and a student
loan of ninety thousand dollars therefore her total liabilities are four
hundred and four thousand dollars if you calculate their net worth as their
assets minus their liabilities olympus total net worth is just seventeen
thousand dollars now would you expect someone who's earning a hundred thousand
dollars a year to have a net worth of just seventeen thousand dollars probably
not but this illustrates that your income is just one piece of your
financial pie it matters as much if not more how you spend your money than how
much you make as you can see that elizabeth has indebted herself a lot
ultimately reducing her overall net worth therefore never equate a high
salary to a high net worth because they are definitely not one in the same
someone's income can paint a totally different picture than what their
personal balance sheet presents sign number six you don't understand the
difference between buying and affording something fake rich people rarely make
purchases they can afford after all they have to impress people for a living but
really is there a difference between buying and affording something these two
things may seem synonymous to some but they are far from being the same when it
comes to buying there are two ways you can go about this spending with cash or
credit spending with credit is obvious in how you can be spending money you
don't have this is how people max out their credit cards and end up in
financial trouble as they bury themselves in debt and interest charges
it's for this reason that many people sidestep the use of credit cards and
only spend cash however spending cash to buy something doesn't mean you can
afford it if you only have ten thousand dollars in cash to your name and you
spend it all in a new car were you really able to afford it if you ask me
affording something means that you're spending money on something where you
are not negatively impacting your financial position in the example of the
car purchase if you spend every last dime on a new car you'd be broke and
anyone expense would send you into debt however if you spend ten thousand
dollars on a car and add five hundred thousand dollars in the bank then i'd
argue that that's a purchase you can afford because you would still be in
great financial shape after going through with the transaction overall i
like to say that if you can't buy five of them then you can't afford one of
them and if you see people spending on things that tap them out financially
then they are probably part of the fake rich sign number seven you buy things on
credit that you can't pay off another sign you're fake rich is when you buy
things on credit you can't pay off when it comes to money ignorance is never a
blessing keeping your head in the sand as the storm rages around you is not a
viable plan a negative account balance will worsen and this is where it all
comes crashing down for fake people financially not only will you run into
overdraw fees but when you finally deposit money into your checking account
it will be eaten up by your negative balance with a habit like this you'll
likely run yourself into one trouble or another like these add up and consume
the money you have if you delay payment for long some services may become
disconnected and you'll have to pay the total amount due in addition to a
reconnection fee not to mention if people think you have money they will
expect you to spend it since the fake rich like to show off their paychecks
they automatically run into debt they can't pay off and suffer for it in
conclusion people who live fake lives end up fooling only themselves because
the truth will eventually come out if you want to be rich take the steps out
the rich have taken talk less don't show off and be frugal in fact that may be
crippling your finances as we speak and you may not even realize it which is why
in this next video i'll share with you all the signs you have a debt problem so
click on over and let's get started