Published in Finance
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12 Ways To Identify Fake Rich People

As Warren Buffett himself said, true wealth is not measured by the things you own but by your financial freedom and security.

12 Ways To Identify Fake Rich People

As Warren Buffett himself said, true wealth is not measured by the things you own but by your financial freedom and security. In this blog, we'll be sharing with you some of Warren Buffett's wisdom on identifying those who are faking their wealth and distinguishing them from those who have genuinely achieved financial success.

1. They drive a car that doesn't match their house. Observing their own vehicle is an easy way to spot a fake rich person. An affected rich person may own a car that does not match their socioeconomic status, such as a luxury car and a mediocre neighborhood or a large car and a small apartment.

They may also prioritize owning a luxury car over having a comfortable living space or make sacrifices such as renting a small room with multiple roommates to afford a luxury car. On the other hand, a genuinely wealthy individual understands that owning a luxury car is not a priority and that a reliable, functional vehicle is all that is needed for transportation. They would not sacrifice or prioritize owning a luxury car over their comfort or financial stability. By observing the vehicle a person owns, you can easily spot a "fake rich" person.

2. They don't value time. As the saying goes, "you can always make more money, but you can't make more time." A truly wealthy person understands the value of time and prioritizes it. They are mindful of how they spend their time and use it efficiently. On the other hand,, a "fake rich" person may not be as conscientious about time management and may be more inclined to engage in leisure activities or be less punctual. They may not understand the true worth of time and may not value it as much as someone genuinely wealthy would. Those genuinely rich tend to be dedicated to self-improvement and making the most of their time.

They may engage in activities such as reading, working out, practicing mindfulness, and spending time with loved ones. They have a balanced approach to life and the importance of self-discipline in achieving and maintaining wealth. This self-discipline is an essential characteristic that sets them apart from those not genuinely wealthy.

3. They are obsessed with appearing fashionable. People who are "fake rich" often cling firmly to the idea of dressing to impress. T believes that wearing expensive clothes will garner attention and validation, so they will always be seen in attire that displays their supposed wealth. 

Meanwhile, genuinely wealthy people may not dress in a way that immediately screams, "I am rich." In fact, they may choose to dress more understandably so that the public is not directly aware of their wealth. In a 2016 Reddit Ask Me Anything, Bill Gates was asked about the one area where he is frugal, and he replied that he doesn't like to spend much money on clothing or jewelry. He also mentioned that Steve Jobs, known for wearing the same Black turtleneck, and Mark Zuckerberg, who often wears the same t-shirt and hoodie, do it to limit decision fatigue. 

They understand that the fewer choices you have, the more energy you have to give them more points to focus on important decisions. So, if you notice someone overly concerned with putting on a flashy. And over-the-top outfits may be a sign that they aren't genuinely wealthy.

4. They buy liabilities. Individuals who are "fake rich" often feel the need to flaunt their supposed wealth by purchasing items on credit or through monthly installment plans. Whether it be a luxury item like the latest gaming console or designer handbag. They prioritize instant gratification, even if it means taking on death.

On the other hand, genuinely wealthy individuals tend to avoid buying liabilities on credit, as they understand the importance of using credit only to acquire assets that will generate more money and provide a long-term benefit, unlike those who are "fake rich" and prioritize impressing others. Individuals who are "fake rich" often take out loans to buy goods solely to impress others without generating any income from these purchases. This leaves them in a precarious financial situation, as they are now burdened with loans and interest payments that they have to make. This behavior is financially detrimental in the long run, as they are not generating any revenue to offset these expenses.

5. They prioritize brand image over product quality. A "fake rich" person may be inclined to wear fake products as long as they prominently display a well-known brand name such as Christian Dior or Versace.

This is a sign of a "fake rich" person, as they prioritize the appearance of owning expensive, branded items over the actual quality and authenticity of the product. They do not care about the appearance of wealth but the real wealth.

6. They always brag about their plans. The next sign to spot a "fake rich" person is they constantly chatter about their plans. They boast about their new, high-potential ideas, often claiming to be working on something big. However, these claims are usually empty as "fake rich" people tend to be all talk in no action. They fantasize about a prosperous future but lack the discipline and focus on turning their dreams into reality.

They may brag about their upcoming, potential multi-million dollar projects, but they often fail to put in the consistent work and effort required to bring these plans to fruition. This lack of follow-through is a difference between fake rich and truly wealthy individuals who focus on one goal at a time and put in the necessary work to make it a reality over the long term rather than just a few months.

7. They don't have a financial safety net. Another sign of a fake rich person is that they hardly have any savings. This is because they are too preoccupied with investing in their appearance and how people perceive them. As a result, the fake rich find it hard to keep their money, opting to blow it on things that will make them look rich.

Therefore if an emergency arises, they will have to borrow money, leading them to get caught in debt and pay interest. What sets the fake rich apart from the truly wealthiest is that the latter always set aside a portion of their income and savings to aid them in times of need or future opportunities. They can always capitalize on worth the options because of their savings. On the other hand, the fake rich will be unable to fund themselves on quality opportunities due to their lack of protection

8. They constantly talk about money but lack financial literacy. A person's conversation often reflects their thoughts and preoccupations. For example, a person who is fixated on appearing wealthy or a fake rich person will often speak about money and material positions. They may talk about the price of a new pair of shoes they just bought or the cost of a new phone, as they are always thinking about money.

On the other hand, genuinely wealthy people tend to rarely mention money, as it is not a concern or preoccupation for them. They already have enough, and it's not a problem for them. Many people may seem knowledgeable about financial matters when discussing them superficially. But if you probed more profoundly, they may have a thorough understanding. They may not be able to provide specific details or examples of how they've built their wealth; it is not something they have personally experienced. This lack of financial knowledge indicates those who don't indeed have wealth, as those who do would have gained it through their own experience and expertise.

9. They constantly seek the approval of others. Fake wealthy Individuals are preoccupied with how they are perceived by society and continuously seek validation from others, particularly those they perceive as being of lower social status. This gonna be observed on social media, where fake wealthy individuals are overly concerned with the number of likes and followers they have.

They crave appreciation from others as it boosts their confidence and fulfills their ego. In contrast, genuinely wealthy individuals do not feel the need to impress society or gain validation from others. They are more likely to be indifferent to what others think of them, even on social media. They don't need to show off their wealth because they are already making money; validation from others doesn't bring them more money.

10. They constantly compare their possessions and status to those around them. Another indication of a fake rich person is their tendency to constantly compare what they have and what others do not have. They may boast about their latest luxury purchase and make a point to Highlight how others do not have it.

They are motivated to impress and please others by showing off their wealth rather than being content with what they have. On the other hand, genuinely wealthy individuals do not feel the need to prove their wealth through material possessions and do not compare themselves to others. They don't have the need to show off their wealth to other people. A sign of a "fake rich" person is their preoccupation with acquiring a brand of goods. Not for the benefit of others but solely for their own pleasure. They will often compare what they have to others around them, indicating they are not truly wealthy. They are driven by a desire to impress others through their material possessions and not genuinely valuing them for themselves.

11. They continuously strive for bigger and better possessions. Fake wealthy individuals are often preoccupied with impressing others and keeping up with the latest trends and fads. They believe that by constantly staying current and appearing rich, they will be perceived as part of the elite class.

This mindset leads them to continually update their possessions and spend exorbitant money on trendy items. This behavior also extends to financial opportunities, where fake wealthy individuals often boast about potential money-making ventures. Yet lack the follow-through and discipline to bring these plans to fruition. Instead, they spend more time and energy creating the appearance of success rather than putting in the hard work and effort required.

12. They constantly feel jealous of others' possessions or success. Faking oneself is when a person alters their true self to conform to a specific image or standard. This often arises from envy of others. When someone envies another person, they may feel compelled to change themselves to appear superior to the person they envy.

The fake rich person may constantly strive to acquire bigger and better possessions, such as a larger house or a more luxurious car, proven by envy. In contrast, wealthy individuals are genuinely content with what they have and do not need to compare themselves to others. They may not even have the time or inclination to observe others and feel envy. On the other hand, a fake rich person is preoccupied with being envious of others and has driven by the desire for recognition as a wealthy person.

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