Building Wealth Mistake 1: Buy Luxury Goods To Look Rich

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Is one of the most common money mistakes that financially poor and average people made is the buy Luxury Goods to look rich.

 Meaning of Luxury: 
- great comfort, especially as provided by expensive and beautiful things
- something expensive that is pleasant to have but is not necessary
- something that gives you a lot of pleasure but cannot be done often
Source: https://dictionary.cambridge.org/dictionary/english/luxury

 Luxury goods are products that are not essential but are highly desired and associated with wealthy or affluent people. They are bought for several reasons: to support self-worth and status, or for the product's quality and craftsmanship.
Source: https://examples.yourdictionary.com/examples-of-luxury-goods.html

 When we started to have income, incentives, high commissions or year end bonus, is common that most of us tend to buy luxury goods at one point or another.

With the influence of peers and social media, many people will have the feeling of envious, jealous, not wanting to fall behind when they see others posting photos or videos of their luxury goods such as expensive watches, bags, cars, shoes, jewellery on social media.

 A couple of "want" reason to buy luxury goods to look rich that I feel  
- want to feel more confident
- want to impress friends/peers/strangers
- want to attract attentions from others
- want to be trendy in fashion
- want to show the "status" 

 What is the point of looking rich but we are struggling financially and lives paycheck to paycheck? 

 It will make more sense if we can invest the money and let compounding "work" for us.

 Example: Instead of buying a $7,600 handbag, if you invest this amount with let say a 5% compounding interest for 30 years, you will have $33,955.

 Let's focus and work on our financial needs & goals if we are seriously wanting to build our wealth, rather than buying luxury stuffs to look rich.