The Ultimate Consumer
Let me tell you a nice story about the ultimate consumer. The story is about Mr.Green. Mr.Green is a high Income professional. And he earns $ 2,50,000 every year from his profession.
Mr.Green has two boats, 5 Automobiles ( 3 Leased and others purchased via credit), expensive clothes and a branded watch worth of $ 5,000. He is a member of 2 country clubs and has more than a dozen credit cards in his pocket. Among which his faourite credit card is Diners Club Platinum Credit card.
Mr.Green is 45 years old and according to his Income and age group his Net Worth should be well above $ 1.5 Million. But What is his actual Net Worth? Well, it’s just $ 2,00,000.
Now, Suppose if Mr.Green loses his job than how many years he can survive on his current wealth (Net Worth)? Probably not more than 6 months right?
Than Why such an Intelligent person who is making 6 figure income every year is living a life like this? This is because lack of Financial Education. He thinks that to look cool and rich, you MUST have expensive cars and watches. Of course, he is absolutely right. Because everyone around him is as financially illiterate as him.
Remember, the people you see around you who are driving luxurious cars, wear expensive clothes and wear expensive watches are not necessarily rich. These are the high income/low net worth group of people.
If today they loss their job, they cannot survive for few months on their current wealth. But a wealthy person is one who can survive probably for his rest of life on his current wealth with maintaining the current life style even if he stops working today.
Moral: Don’t be impresses or judge anyone’s wealth or financial well beingness by only seeing his/her Food, Car, Clothes, Watches & Beverages Choices.
Let me tell you a nice story about the ultimate consumer. The story is about Mr.Green. Mr.Green is a high Income professional. And he earns $ 2,50,000 every year from his profession.
Mr.Green has two boats, 5 Automobiles ( 3 Leased and others purchased via credit), expensive clothes and a branded watch worth of $ 5,000. He is a member of 2 country clubs and has more than a dozen credit cards in his pocket. Among which his faourite credit card is Diners Club Platinum Credit card.
Mr.Green is 45 years old and according to his Income and age group his Net Worth should be well above $ 1.5 Million. But What is his actual Net Worth? Well, it’s just $ 2,00,000.
Now, Suppose if Mr.Green loses his job than how many years he can survive on his current wealth (Net Worth)? Probably not more than 6 months right?
Than Why such an Intelligent person who is making 6 figure income every year is living a life like this? This is because lack of Financial Education. He thinks that to look cool and rich, you MUST have expensive cars and watches. Of course, he is absolutely right. Because everyone around him is as financially illiterate as him.
Remember, the people you see around you who are driving luxurious cars, wear expensive clothes and wear expensive watches are not necessarily rich. These are the high income/low net worth group of people.
If today they loss their job, they cannot survive for few months on their current wealth. But a wealthy person is one who can survive probably for his rest of life on his current wealth with maintaining the current life style even if he stops working today.
Moral: Don’t be impresses or judge anyone’s wealth or financial well beingness by only seeing his/her Food, Car, Clothes, Watches & Beverages Choices.
Posts
