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I feel like there are people out there who have nice clothes, cars, houses, etc. but don't actually have the money. They make it appear like everything looks good on the outside but in reality they are just racking up massive debt. Do you agree?
Yes I agree. I used to work with a dude that embodied that. He had all the appearances of being quite wealthy. He drove a late model expensive sportscar, had tailored suits, ate at expensive restaurants, drank expensive wine etc... but it was all OPM.
I dropped in to his rented apartment one time, the place was empty.
No furniture or TV, just a mattress and no refrigerator. Virtually nothing. All the money he earned went on keeping up appearances with the expensive car and paying off several credit cards. He lived pay check to pay check.
It's a paradox, but poor people that act like rich people are exactly the opposite. They save 25% of their meager income in stock market index funds, and calculate the Return On Investment of everything they do.
The ones that understand wealth generation will sometimes work their way up to the upper middle class bracket.