Frugality: Do Wealthy Have a High Consumption Lifestyle?

Frugality: Do Wealthy people Have a High Consumption Life Style?

Popular media channels, News papers and TV Channels show that, wealthy people live a high consumption life style. They set the mindset in the Financially uneducated people that, buying expensive items is normal behaviour for affluent people.

These financially illiterate people are led to believe that the wealthy have a high consumption life style. They learn from the media that hyper spending is the main reward for becoming affluent.

So Who are these Financially illiterate people? – Well, they are doctors, lawyers, IT professionals and many other high income producing groups.

Well, of course these people are highly literate academically but their financial literacy is ZERO. And that’s why they think that, wealthy people spend more. Thus, to look cool and rich, they also spend more and consume high status clothes, watches, motor vehicles and foot wares.

But the reality is different. In reality, truly rich and wealthy people live Frugal. They live below their means, they spend less than they earn. They never spend money behind buying high status showing items. In fact, they accumulate wealth. They believe in accumulating appreciating assets such as stocks, bonds, gold, real estate, mutual funds and businesses which tend to appreciate in its price over the time.

The rewards of really wealthy people are more intangible than product-related.

These intangible rewards are financial independence; discipline and being an excellent family provider. Financial Independence is the great reward the true wealthy people have. Thus, Frugality pays off in the long run. Un fortunately, the Frugal life style is not glamorous and that’s why it doesn’t get media attention.

While on the other hand, High spending, consumer life style is glamorous and that’s why it gets lots of media attention and coverage. So Be Frugal and live like True Wealthy…!!!