- Market Daily Report: KLCI ends higher in tandem with regional markets
- Market Daily Report: KLCI up with US stocks as Malaysian earnings trickle in
- Market Daily Report: Malaysian stocks stay weak as US bombing in Afghan soured investors' appetite
- Market Daily Report: KLCI rebounds after two days in the red
- Brokers Report: Petronas Chemicals - FID On Isononanol Plant Approved
Tuesday, October 15, 2013
The Consequences of Showing Off With Expensive Things, Which You Cannot Afford
I've read an interesting article on The Star not too long ago regarding what happens when you show-off with expensive things, but can't afford it and of course it makes sense that the consequences of showing off with expensive things which you cannot afford is debt; and in some of the more severe cases one might actually declared a bankrupt because of this.
I am sharing the following article to raise awareness among the youngsters who are not having good sense of financial management; but at the same time placing too much importance on appearing "rich" rather than really rich in net worth although the article applies to almost everyone.
The article is as follows:-
Placing too much importance on appearing rich can affect one’s net worth. One may want to delay self-gratification in order to build a strong financial foundation
I ONCE asked someone who looked like a million dollars on the outside but was totally broke, this question:“Is your self-worth destroying your net worth?”
Some of us have defined our self-esteem from the external things - the car we drive, the handbags we use, even the pen we write with. We want to be seen as “rich and successful” but we are secretly struggling with our finances.
Even if we are not broke, some of us have placed the external outlook of ‘looking rich’ as more important than the milestones in our lives, for instance ensuring a secure retirement or building a strong net worth that can last throughout our lifetime.
Wanting to ‘keep up with the Joneses’ maybe due to a lack of self-esteem. Those who buy things they can’t afford sense a boost in their self-confidence by having these things, particularly in the public.
Having luxurious items is fine as long as you know your net worth can sustain it and you do have a financial plan in place.
However, if it is draining your pockets, then you need to wake up and change before it is too late.
Stop placing so much importance on demonstrating socio-economic superiority.
Rather, focus on owning a strong financial foundation that can sufficiently meet your life’s goals.
Delay instant urges to gratify your self-image until you are sure your net worth says you can afford it.
If you do indeed have a self-worth issue, fulfill the void with family and meaningful relationships, a heightened appreciation for self, charitable works or even spirituality for some.
There is nothing wrong looking ‘less rich’ than others as long as you know that happiness is sourced internally and not externally.
After all, money does not buy you happiness but managing it well can get you there.
I urge you to ask your self this question now: “Which is more important: your self-worth or your net worth?”