Expensive items wrongly believed to indicate wealth, yet unimpressive to individuals who genuinely possess financial means

In the world of wealth, there are distinct differences between the truly affluent and those who merely aspire to be. This article delves into the habits and mindsets of the wealthy, as observed by the author, based on the Five Factor Model of Personality.

Open-mindedness, conscientiousness, extraversion, agreeableness, and emotional stability are common traits among the wealthy. They approach life with a curious and inventive spirit, yet remain effective, organized, sociable, cooperative, and emotionally resilient.

Firstly, the wealthy understand that life is more than just accumulating possessions. They prioritize experiences that restore them, viewing this as a flex in itself. Time, they believe, is the rarest asset, and building a life that doesn't require a vacation is a testament to this philosophy.

When it comes to material possessions, the wealthy favour reliability and proportion. Cars, for instance, are not status symbols but practical investments. They avoid luxury cars on long loans or unaffordable leases, understanding that these can drain their future. Instead, they buy cars within a small slice of their liquid net worth, using them as tools rather than costumes.

Housing is another area where the wealthy exercise prudence. An oversized house can lead to being "house poor," with bigger mortgage, utility bills, repairs, and property taxes. The wealthy, therefore, buy a home that fits their actual usage, with the rest going into flexible, compounding buckets.

The wealthy also value privacy. It is the ultimate flex for them, a testament to their ability to live their lives on their own terms. They do not treat fashion as a proxy for identity, focusing instead on fit, fabric, and function.

In terms of investments, the wealthy favour simplicity. They own boring investments they can explain in one sentence and hold them for a long time. They care about terms, not theatrics, and use credit cards as tools, not as a means to flex.

Lastly, the wealthy are masters of saying "no." They understand that their time and attention are precious and buy them back whenever possible. They do not engage in loud flexes, such as flashing metal credit cards or posting selfies from airport lounges.

In conclusion, the difference between the wealthy and those who are not is not just about how much they have, but how they relate to their possessions and experiences. The wealthy understand that life is about balance, simplicity, and most importantly, time.

Expensive items wrongly believed to indicate wealth, yet unimpressive to individuals who genuinely possess financial means