The point of the original post is that seeking status is an unnecessary way of thinking that can be detrimental to one’s personal finances.
I started thinking about this from reading and following reviews on cars. To paraphrase, stuff like this:
- "This car costs $35k so it's for someone just getting started out in their careers."
- "If your salary is x per year, then you are probably looking for a car that costs y."
- "You might as well lease a car because most people only keep them 3-4 years."
- "I just graduated college and I need a brand new, loaded vehicle because I have to have reliable transportation."
I keep mentioning cars because it's a key offender in status-chasing, but there are many other areas. And, of course, there are people out there who can afford seemingly lavish purchases without becoming overextended. Just food for thought regarding keeping up with the Joneses.
The gist of the book is that the millionaire is frugal. They’re more likely drive an older Honda Accord than a Mercedes. Don‘s waste your money on stupid ****.That sounds pretty crazy to think of it now.
I am sure I read that book years ago but don't have much recollection of specifics. Even great minds and helpful books are likely to have some points that don't hold up. Even Milton Friedman had some notions that turned out to be probably not so correct.