The Rich act Poor and the Poor act Rich.

Bigbobby

Are we living in a society in which many are financially illiterate and consumeristic?  Live for the moment, never mind tomorrow, show off and live beyond our means?  Try to be someone we are not most likely down to insecurity and jealousy?  Spend, spend, spend and not save and invest?

I see it every day where nearly every 3rd car I pass by is huge and expensive way beyond what is required for UK roads.  Some may say it is for comfort, safety and space but really?  I drive a Dacia Sandero 1L and it serves me fine getting from A to B.  Most people’s average week is work, supermarket once a week and a car boot sale at the weekend.  Why the large cars for this? Status symbol probably insecurity in themselves?

Going on holiday to expensive 5* hotels with fine dining and drinking?  My colleague is going to Marbella in next few weeks.  £2000 for 5 nights in  5 star hotel with breakfast.  They then plan to spend another £2000 on eating and drinking out posing on the seafront.  Both have average incomes.

Big houses (especially new builds in last decade); showing off on facebook going to cocktail bars and top notch restaurants; expensive clothes; jewellery and watches; order gadgets from amazon every other day; expensive gym memberships.  The list could go on.  We life in a society that needs that instant gratification, that adrenaline rush, trying to outclass others.  Never mind saving and investing for the future or a rainy day.

Spoiling their children rotten seems a common thing now as well.  Getting them a new car after they have passed their test; bailing them out of financial emergencies; £200 designer handbags for birthdays; private reg number plates.  When I was growing up in the 80s and 90s I remember society as a whole having less disposable income with higher interest rates etc.  Fast forward to 2025 and yes the cost of living etc has been an issue but compared to previous generations we have never had it so good.

I then overhear friends, colleagues etc then say how the struggle to pay essential bills, dread paying for xmas, are in debt and no rainy day fund???  The luxury lifestyle on just an average income is all just an illusion???

I’m no angel and in the past I made some unwise financial decisions such as smoking and going out drinking too much with my mates every weekend etc in my teens.  Generally though I have been sensible with money and lived below my means probably due to my upbringing.  We were not rich or poor and I remember as a child living just an average lifestyle.

By the time I hit my 20s I started to calm down and grow up.  I got a mortgage at 23 in a 1 bed flat, I drove an cheap Peugeot, paid all my bills, no debt.  Yes I did have fun going camping, fishing, hiking etc which brought me great satisfaction and living a luxurious lifestyle had no appeal. 

I’m 39 now and matured more and remain sensible with money.  I now live in a 2 bed semi, drive an average car, still pay my bills, not in debt and made further financial decisions:

-I pay extra into my NHS pension scheme

-I have a SIPP and stock and shares ISA with Vanguard (Global index tracker and global bond tracker)

-Emergency Fund in a Money Market Fund

-Couple of buy to let properties

-I have a lodger with rent a room scheme

-Overtime at work when available and a second job

I shop around for the best deals with insurance, utilities etc; pay annually which tends to be cheaper; shop at discount supermarkets etc.  I am not boring and still have fun and I am going on holiday to Scotland in July camping then off to Malaga in September.  I live a frugal life – batch cooking, growing veg, wearing clothes that may be older but still in good condition, baking, DIY etc.

By saving and investing I have long term ambitions such as financial independence/early retirement.  I do not want to have to work until 68 just to feed a false lifestyle.  I am planning to be mortgage free soon and move to the countryside at some point.

As well as spending being a cultural issue it is also an educational one.  I do not remember being taught about budgeting at school.  My financial knowledge came from doing my own research and reading of my own accord later on in life.  Reading financial cooks and following advice such as Buffett and Bogle.

Yes I do appreciate that everyone situation is different and people have responsibilities and commitments - children, health issues, deprivation, social issues but with even with some simple adjustments people could make life so much easier for themselves.

I find that living a simple yet still fun life gives me freedom and huge peace of mind at night.  I do not have to pretend to be someone I am not and fall for the lifestyle trap.  I would not describe myself as Rich but I do have more net worth now compared to my 20s.  Why? Because I live below my means and not above my means.  Look at Mark Zuckerberg, on stage wearing some average jeans and a t-shirt?  Says a 1000 words in my view.  Those with more net worth tend to not going around showing off as it would be a security issue as well.  It is not worth attracting attention to yourself.

One quote that sticks with me is that “The Rich act Poor and the Poor act Rich”.  This is a true reflection or many in society now.  When you next drive past that large 4x4 just ask yourself, are they really that rich?

eastcorkram

All ending up in the same place though I guess. 

northwalesd

Although in the 80s interest levels were eye watering, that decade was the epitome of live for today and don't worry about tomorrow. Things haven't changed much from then to now.

HampshireH

I think each to their own.

Personally I prefer balance. I too pay my bills, pay the mortgage, pay pension, pay childcare etc, save..... But choose to take a nice holiday and have a nice car.

I've worked hard for it. I choose to do what I want with it. It's no use to me when I'm gone.

EssexExile

You can't really tell how financially literate people are by looking at them, we all have different priorities. People with posh cars may not buy designer clothes, or it's a company car. People with big houses may have inherited them, or married well.

I remember when I first got married I had a crap car, a cheap house, no holidays. Now I'm old and I have a nice car, a nice house and have good holidays. 

I too like living within my means but everyone is different.

Emmia

Bigbobby said:

Are we living in a society in which many are financially illiterate and consumeristic?  Live for the moment, never mind tomorrow, show off and live beyond our means?  Try to be someone we are not most likely down to insecurity and jealousy?  Spend, spend, spend and not save and invest?

I see it every day where nearly every 3rd car I pass by is huge and expensive way beyond what is required for UK roads.  Some may say it is for comfort, safety and space but really?  I drive a Dacia Sandero 1L and it serves me fine getting from A to B.  Most people’s average week is work, supermarket once a week and a car boot sale at the weekend.  Why the large cars for this? Status symbol probably insecurity in themselves?

Going on holiday to expensive 5* hotels with fine dining and drinking?  My colleague is going to Marbella in next few weeks.  £2000 for 5 nights in  5 star hotel with breakfast.  They then plan to spend another £2000 on eating and drinking out posing on the seafront.  Both have average incomes.

Big houses (especially new builds in last decade); showing off on facebook going to cocktail bars and top notch restaurants; expensive clothes; jewellery and watches; order gadgets from amazon every other day; expensive gym memberships.  The list could go on.  We life in a society that needs that instant gratification, that adrenaline rush, trying to outclass others.  Never mind saving and investing for the future or a rainy day.

Spoiling their children rotten seems a common thing now as well.  Getting them a new car after they have passed their test; bailing them out of financial emergencies; £200 designer handbags for birthdays; private reg number plates.  When I was growing up in the 80s and 90s I remember society as a whole having less disposable income with higher interest rates etc.  Fast forward to 2025 and yes the cost of living etc has been an issue but compared to previous generations we have never had it so good.

I then overhear friends, colleagues etc then say how the struggle to pay essential bills, dread paying for xmas, are in debt and no rainy day fund???  The luxury lifestyle on just an average income is all just an illusion???

I’m no angel and in the past I made some unwise financial decisions such as smoking and going out drinking too much with my mates every weekend etc in my teens.  Generally though I have been sensible with money and lived below my means probably due to my upbringing.  We were not rich or poor and I remember as a child living just an average lifestyle.

By the time I hit my 20s I started to calm down and grow up.  I got a mortgage at 23 in a 1 bed flat, I drove an cheap Peugeot, paid all my bills, no debt.  Yes I did have fun going camping, fishing, hiking etc which brought me great satisfaction and living a luxurious lifestyle had no appeal. 

I’m 39 now and matured more and remain sensible with money.  I now live in a 2 bed semi, drive an average car, still pay my bills, not in debt and made further financial decisions:

-I pay extra into my NHS pension scheme

-I have a SIPP and stock and shares ISA with Vanguard (Global index tracker and global bond tracker)

-Emergency Fund in a Money Market Fund

-Couple of buy to let properties

-I have a lodger with rent a room scheme

-Overtime at work when available and a second job

I shop around for the best deals with insurance, utilities etc; pay annually which tends to be cheaper; shop at discount supermarkets etc.  I am not boring and still have fun and I am going on holiday to Scotland in July camping then off to Malaga in September.  I live a frugal life – batch cooking, growing veg, wearing clothes that may be older but still in good condition, baking, DIY etc.

By saving and investing I have long term ambitions such as financial independence/early retirement.  I do not want to have to work until 68 just to feed a false lifestyle.  I am planning to be mortgage free soon and move to the countryside at some point.

As well as spending being a cultural issue it is also an educational one.  I do not remember being taught about budgeting at school.  My financial knowledge came from doing my own research and reading of my own accord later on in life.  Reading financial cooks and following advice such as Buffett and Bogle.

Yes I do appreciate that everyone situation is different and people have responsibilities and commitments - children, health issues, deprivation, social issues but with even with some simple adjustments people could make life so much easier for themselves.

I find that living a simple yet still fun life gives me freedom and huge peace of mind at night.  I do not have to pretend to be someone I am not and fall for the lifestyle trap.  I would not describe myself as Rich but I do have more net worth now compared to my 20s.  Why? Because I live below my means and not above my means.  Look at Mark Zuckerberg, on stage wearing some average jeans and a t-shirt?  Says a 1000 words in my view.  Those with more net worth tend to not going around showing off as it would be a security issue as well.  It is not worth attracting attention to yourself.

One quote that sticks with me is that “The Rich act Poor and the Poor act Rich”.  This is a true reflection or many in society now.  When you next drive past that large 4x4 just ask yourself, are they really that rich?

Your post comes across as incredibly judgemental, and I sense a tinge of jealousy. People can spend and save (or not) as they wish. Focus on yourself and your life rather than judging others.

Incidentally Zuck has moved away from the grey t-shirts (which might look "average" but in fact were very expensive and custom made... Allegedly $300 - $400 a pop) and jeans... To a somewhat different look.

ZeroSum

A lot of people with very little have the mentality of 'there's no point, get it spent & enjoy it while you can' as they don't see any hope in accumulating assets for their future.

Grumpy_chap

Emmia said:

I sense a tinge of jealousy. 

Such a sentiment on the part of the OP would be potentially misplaced.

The OP states they have assets (no debts, house, car, pension fund, emergency fund, BTL properties).  All that gives the OP security and choice.  The OP could choose to liquidate some of the assets (sell one of the BTL properties) and release sufficient funds to purchase a "premium" car and take some luxury holidays.  Or the OP can choose not to.

The people the OP has observed with the "premium" cars and taking luxury holidays quite likely cannot choose to have the assets the OP has and dream of such security and financial resilience that the OP has - they are quite likely jealous of the OP's financial security and wealth.

AstonSmith

I mean I take issue with the "never had it so good" sentiment (as I have only ever earned minimum wage all my life, and my parents are poor too). However the title of this thread is pretty bang on.

The rich are rich because they scrutinize everything regarding money. My workplace used to sell newspapers, and some of the properties nearby are £1m+ seafront ones. A guy from one of those houses asked us if we could pull out a certain section out of a paper everyday, and let him have it for free. He wanted us to return the paper without that section to our supplier for the sale-or-return refund, i.e. fraud. !!!!!! cheek. That's the mentality of the rich.

BridgetTheCat

Well how very sanctimonious of you. 

It’s often a case of needs versus wants. If you only satisfy basic needs you’re not really living - just existing. You have to satisfy some wants to have a full life.

I also live within my means, but a 5* week away every few years? I’m absolutely having that. Not everyone enjoys camping 😉

You’re looking around and only seeing a snapshot of people’s financial decisions. You’re not seeing the consideration and budgeting behind any of it.

sammyjammy

But you have no idea of these peoples finances?  Different people have different priorities.

Interestingly we obviously live in different social circles as I don't know anyone like that!