Everyday, everywhere we go, we are bombarded with advertisements – latest gadgets, autos, fine dining, houses, fashions, etc., etc.
The majority of people are being entice into these glamorous marketing technic and thus began the never-ending race to keep up with our peers or next door Jones.
But have we seriously gave a thought that do we really need them? For example, is it necessary to change to the latest and trendy mobile phone in the market with multitudes of advanced functions that we barely use everyday, or even maybe too high-tech for us to comprehend how to utilize them?
Enterprises and businesses, with innovative and attractive marketing strategies, entice and overwhelm consumers with their products and services are preying on poor people – or at least people who don’t plan very well. So here we go – if you can’t afford a new set of HD plasma 52″ TV why should you be deprive of owning one to keep up with your next door Jones? Just buy on credit and pay by instalments with almost every banks and financial institution offering credits! Who cares if you are paying interests or whether you are able to fulfill the extra financial obligation of this purchase on top of your present ones! You can look slick and update with your newly purchase HD wide-screen TV! – this is the norm of present-day society.
Thomas Stanley, in his latest book, Stop Acting Rich, reveals the surprising practices of the really rich. They eat at modest restaurants, buy modest cars, and live in modest houses. The average dinner cost for the truly rich is $19.59 and very few ever spend over $10 on a bottle of wine. Guess who’s flashing the $250 bottles and putting $300 dinners on their American Express – yep, it’s the pretenders – those who want to impress others.
In his book, Thomas describe three types of wealthy people :
- Glittering Rich – The ones you see and hear about in the press. It is what most think is wealthy. They are hyper-consumers, but no matter how much they spend it’s not going to affect their overall net worth.
- Income Affluent (IA) – Typically high income, but low net worth. They try to keep up with the Jones (glittering rich) and fail miserably. They aren’t wealthy as they have very little saved.
- Balance Sheet Affluent (BA) – The more common wealthy that plan to be wealthy by savings and investing. This type of person has been the focus of most of his work.
I believe the majority of people falls into the 2nd type, Income Affluent (IA) category – changing cars every few years, changing mobile phones every few months, dress to impress…this is reality. Is this how you want to live?
It’s pretty eye-opening to realize how much marketing is directed at those who want to “act rich.” Being rich doesn’t mean you have to waste money.
So the next time you want to make a purchase, ask yourself truthfully, ” Do I really need this? ”