Recently there was a post on the Simple Dollar about a book review for Stop Acting Rich.  The post really got me thinking about being rich, acting rich and thinking rich.  I thought I would comment on it a bit here.  Am I acting rich?  It seems that according to this article I’m acting rich; an “aspirational” if you will.  I’m driving a BMW 328 and wearing my Tag Heuer watch.   But I’m fortunate enough to have the means by which to afford a few luxuries without compromising my future.  Is that something to frown upon just because I still need a day job to pay the bills?  I don’t think so and this is where I think the book misses the point at worst and is incomplete at best.

First of all, I do agree that so many people today are spending beyond their means and they need to stop spending in this self-destructive way.  Pay yourself first, save for retirement, get rid of that mortgage and you’ll be much better off in the long run.  But don’t do it to excess so that it hurts your lifestyle today.  If you are saving for retirement and making advanced payments  on the mortgage and still have enough money to splurge every now and then, why not?

I haven’t read the book, but it seems to me like the book doesn’t give any concrete action plans to become rich.  It just says “don’t act rich.”  So this book doesn’t resolve to anything meaningful.  A better book would be called “Stop Acting Rich. Start Thinking Rich.”  Although it’s a little “Kiyosakian”, I do believe that wealthy people have a different mindset, and by adopting that mindset will increase your chances of becoming wealthy.

But for many people, being wealthy isn’t really what they want. There’s no advantage to having a million dollars in the bank just sitting there.  You want to be able to do the things that rich people do and buy the things they do while having the freedom not to worrying about paying for it.  If you add up the financial cost of your dreams, they are likely more attainable than you think.  So pursuing wealth isn’t a viable goal.  Usually wealth comes as a bi-product of pursuing other goals.  I follow penny stocks because of the interest in evaluating companies and the thrill of a successful pick.

What are you thoughts on “acting rich”?

PS:  “Interesting correlation between the net worth and the amount people spent on wines. Ignoring the outliers, the more a person spent on a bottle of wine, the lower their net worth was.“  This is a great calll though.  Never judge a wine by its price!

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