I'm ashamed to say I used to assume consumption was a sign of wealth
I'm ashamed to say I used to assume consumption was a sign of wealth. Fancy car? Must be rich.
Now I realize conspicuous consumption says very little about wealth.
One can drive a Ferrari, but have zero net worth.
One can drive a old beater, but be very wealthy.
In fact, the person driving the beater is arguably *more* likely to be wealthy in the long term. The Ferrari is a liability.
The person driving the old car may have invested the money instead:
- Wealth will grow over time
- Lower stress
- More freedom
That's true wealth.