Looking Rich VS Being Rich
Looking Rich VS Being Rich - The Costly Difference
We all wish to live a rich and happy life. But in chasing the appearance of wealth, we often ignore the discipline needed to actually build it. Living rich may look easy—through flashy cars, branded clothes, or luxurious events—but building wealth requires focus, consistency, and patience. Growing your net worth is vital, especially in a world full of uncertainties where saving for a rainy day is not optional, but necessary.
There are two ways to increase your net worth: increase income or reduce expenses. While increasing income may not always be in your control, reducing unnecessary and emotional expenses certainly is. Often, it’s these emotional purchases that silently erode your wealth. Let’s look at five such common traps:
1. New Cars – Watching Your Money Drive Away
A brand-new car loses about 15% of its value the moment it leaves the showroom. A ₹20 lakh car becomes ₹17 lakhs instantly, and in five years, may drop to ₹8 lakhs. While it may feel luxurious, it’s financially unwise. Pre-owned, well-maintained cars offer far better value with less depreciation.
2. Designer Fashion – Buying an Image
Spending ₹3 lakhs on a handbag or ₹8 lakhs on a watch may give you social validation, but at the cost of financial health. True wealth is rarely flaunted. If luxury items cost more than 1% of your net worth, it’s a poor decision. Prioritise appreciating assets over depreciating symbols.
3. Credit Card Debt – The Silent Killer
Paying only the minimum due on credit cards is like taking a loan at about 40% annual interest. A ₹2 lakh balance can balloon into ₹6–7 lakhs over time. Smart users clear their dues monthly and treat cards as tools for rewards—not as a source of loans. Use the credit card but pay the full amount on the due date.
4. Gadget Addiction – Chasing the Latest
Spending ₹1.5 lakhs yearly on new phones or laptops adds up to ₹15–18 lakhs over a decade. Tech companies push upgrades with marketing, not necessity. Use gadgets longer, avoid unnecessary upgrades, and invest the saved money for long-term returns.
5. Lavish Weddings – One Day, Lifelong Impact
Indian weddings often cost ₹40–50 lakhs, funded through loans or drained savings. But there’s no link between the scale of a wedding and a successful marriage. Simpler weddings reduce stress, and the savings—if invested—can secure your future. A ₹25 lakh investment at 10% annual return can grow to ₹4 crores in 30 years.
Final Thoughts
In a world obsessed with showing off, real winners build quietly. Don’t let emotional spending derail your financial future. Invest wisely, save mindfully, and build lasting wealth—while others impress with borrowed shine.
P.S: 1) The money's indicated are notional.
2) It's a subjective topic, each one to their own style and outlook and priorities. It's a question of Prudence VS Emotions.