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The Rich-Live-Modestly-Poor-Live-Extravagantly Meme
#1
Have any of you seen one of these memes that are not uncommon on social media. They all have this premise: poor people are poor because they spend much of their money on flashy, extravagant items or do so to give an image of being well-off while rich people became rich because of their modesty and frugality or are modest because they don't feel the need to prove their wealth to others. 

For a long time I've thought this meme is bogus. Of the poor people I've met--and Ive met a lot--damn near all of them didn't own much, or didn't own anything! The majority lived on numerous welfare and social programs and/or off of friends and family. Their clothes were donated and many times were in poor conditions. They did not travel. 

After all, the meme is untrue because someone with no income or money of any sort can't buy much, let alone buy flashy clothing, jewelry, cars, and large homes, nor can they afford to go on expensive trips. 

Contrast this with rich people I've met,  Though some are modest in appearance, none of them live poor or modestly! None! They live in expensive homes, wear expensive and tailored clothing, send their kids to sleep-away camp, private school and tutoring lessons, attend expensive country clubs, drive fancy cars, travel frequently, and partake in expensive recreational activities (broadway plays, say). 

One high-earning guy I know has an outrageously expensive jewelry collection, likely worth 250k. Another drives a Mclaren. Can a poor person do this? 

On average, what I've noticed is one can tell someone's class just by checking them out. Of the poor people I've met or observed, it was known or assumed that not a damn one of them even thought they could have or do something extraordinary. Why? It's not possible! 

Middle class people look ordinary. 

Rich are usually obviously rich! Look at their clothing and cars. Check out their homes and spending habits. 

I believe this whole  meme was made up so suckers could believe they can save their way to being rich. Well, it ain't gonna happen. Rich people are rich because they earn a shit ton of money. That's it! And the reason why a weirdo like Warren Buffet lives like a middle class person is either a) because he's odd or b) he wants to give the impression that he is the ordinary man's billionaire. You know, he wakes up and gets a cup of Joe at 711, plays online games, and eats hot dogs for dinner, just like you do! 

The same can be said for all these bullshit become-a-millionaire programs and books out there. Instead of just writing, "Here's how you become a millionaire: go into a field that pays a million a year... if you can and are able!" they give the ordinary jackass hope that he too can be loaded. The authors always leave out the fact that most people are not cut out to be rich, and that there's nothing wrong with that fact! 

Same can be said for guys like Aaron Clarey, who spout off about how each man should be entering a STEM field, all the while ignoring the fact that it's easier said than done considering most people are simply not cut out for such fields! But perhaps careers can take a whole thread of their own.


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#2
Most people are not supposed to be rich. Rich is not an absolute definition, but a relative one, it means being in the top percentile of wealth of a given society.
If someone says that everybody can be rich you can bet is someone trying to make money out of selling some related material, course, etc...

Now, at least where i live, it's pretty common for poor people to get in serious debt to have a more expensive phone, shoes, clothes... Of course the rich expend much more in such things. But the alarming fact is poor people acquiring long term debts just for buying superfluous stuff, and mostly for it's status rather than it utility.
People prefer to pay interest to have a expensive cell phone in 24x payments rather than getting a cheaper one.
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#3
There's also the belief that you can become rich by saving from coffee. haha

Yet it's true that many people from the middle class spend too much money of things that lose their value as soon as you purchase them.
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#4
(02-20-2019, 01:36 PM)TruthSeeker Wrote: There's also the belief that you can become rich by saving from coffee.  haha

Yet it's true that many people from the middle class spend too much money of things that lose their value as soon as you purchase them.

A company is a non-tangible juristic person that serves as a proxy between the elite rich and the middle class and poor.

Through the company wealth is created and pocketed by the elite (majority shareholders) at the expense of the employees of the company who fund their own pension and retirement funds often out of their own collective pool of money. The profits are exclusively for the shareholders and for the company (market expansion) which is owned by the shareholders.

This wealth is perpetual. It stays with the elite families through the perpetuity of the company (shares are inherited from one generation to the next). 

Wealth creates wealth.
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#5
(02-20-2019, 02:08 PM)Brett Wrote: A company is a non-tangible juristic person that serves as a proxy between the elite rich and the middle class and poor.

Through the company wealth is created and pocketed by the elite (majority shareholders) at the expense of the employees of the company who fund their own pension and retirement funds often out of their own collective pool of money. The profits are exclusively for the shareholders and for the company (market expansion) which is owned by the shareholders.

This wealth is perpetual. It stays with the elite families through the perpetuity of the company (shares are inherited from one generation to the next). 

Wealth creates wealth.
If you're not connected with wealth or in the lineage of a wealthy family then the only possible way you can get rich, but with super low success rate and high risk rate is to invest in stocks from companies. Some normally do it to save for retirement or to create savings for emergency situations like a sudden medical emergency that requires an operation or other doctor services. 

Some just invest with hope of large returns in coming years. I don't know stats on success and to what degree the average joe has in making good returns, but I imagine it's < 1% of people and those 1% of people are making a decent enough living to have money set aside to even invest at all. E.g. some middle class or the upper tier of lower income. 

Stock market is complex and unpredictable given how global the world is and the nature of economics. No economist can really predict anything on stocks. None. Each time they tried they were wrong or mostly wrong. 

It's a big risk to invest, but that's about the only way that I know of that most North Americans can try and get into the rich class. College degree will get you into some tier of the middle class if you do right types of majors that are in demand; mostly STEM. Or do a trade like car mechanic, fire fighter, electrician, plumber, etc. Those trade jobs are in high demand but won't make you rich. Just self-sufficient. 

Most young college people (known as Millennials) want some glorious job in a liberal arts based thing like becoming the next big music artist, book writer, art historian, etc. Everyone thinks they will be on the cover of some magazine with their new ideas. None of these are in demand and only way they would get a good position in one of these fields is either having connections with people who can get you in or being at right place at right time and being around the guy/woman hiring while that guy/woman is in a very bright mood and able to leave a perfect impression that they are THE BEST candidate for a job position that 10,000 people are competing for. 

Sorry I went on a tangent there.
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#6
(02-20-2019, 02:48 PM)locutus24 Wrote: If you're not connected with wealth or in the lineage of a wealthy family then the only possible way you can get rich, but with super low success rate and high risk rate is to invest in stocks from companies. Some normally do it to save for retirement or to create savings for emergency situations like a sudden medical emergency that requires an operation or other doctor services. 

Some just invest with hope of large returns in coming years. I don't know stats on success and to what degree the average joe has in making good returns, but I imagine it's < 1% of people and those 1% of people are making a decent enough living to have money set aside to even invest at all. E.g. some middle class or the upper tier of lower income. 

Stock market is complex and unpredictable given how global the world is and the nature of economics. No economist can really predict anything on stocks. None. Each time they tried they were wrong or mostly wrong. 

It's a big risk to invest, but that's about the only way that I know of that most North Americans can try and get into the rich class. College degree will get you into some tier of the middle class if you do right types of majors that are in demand; mostly STEM. Or do a trade like car mechanic, fire fighter, electrician, plumber, etc. Those trade jobs are in high demand but won't make you rich. Just self-sufficient. 

Most young college people (known as Millennials) want some glorious job in a liberal arts based thing like becoming the next big music artist, book writer, art historian, etc. Everyone thinks they will be on the cover of some magazine with their new ideas. None of these are in demand and only way they would get a good position in one of these fields is either having connections with people who can get you in or being at right place at right time and being around the guy/woman hiring while that guy/woman is in a very bright mood and able to leave a perfect impression that they are THE BEST candidate for a job position that 10,000 people are competing for. 

Sorry I went on a tangent there.
Good tangent and post though. What’s your take on the meme?
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#7
(02-20-2019, 03:52 PM)RedPillOverdose Wrote: Good tangent and post though. What’s your take on the meme?

On the internet it's easier to fake being rich to some extent like on Insta or FB. I see plenty of people showing off Apple products who probably aren't that rich. If you are poor as in 3rd world country poor then it's completely apparent that you wouldn't be able to spend any money on luxuries. Just food, water, and rent to some abusive thug in a worn down foreign town. 

Poor in the US is a little different. I was roommates with a guy who was poor by American standards, but he did buy some flashy things. He owned the latest iphone x, which probably consumed most of his paycheck (s); he is a freelance employee in New York doing part time jobs from kitchen work to delivery. 

People can misuse their limited resources and buy things that are flashy, but it would normally be like one or two luxury items, like the iphone example. From 18-21 I was not in college and worked a low wage job, but I did save money to buy audiophile speakers, tube amplifiers and high fidelity cds/digital recordings. 

I remember after buying a couple speakers worth 2K that I had about $50.00 left in my account, but thankfully I didn't own a phone or owed monthly bills and got rent cheap and didn't have to pay until after my next paycheck, so I survived by eating top ramen, saltines and cheese whiz for a couple weeks. I'm a living example of some poor dude who spent his money a little unwisely. So from time to time it can happen based on my roommate's experience and my own. 

Most of the time though I think poor Americans are somewhat intelligent and frugal so they don't risk not having enough money to pay rent, so the meme is false at least 90% of the time. I can't comment on rich people as in ones who make at least 1 mill a year, but I have met many upper class people (earning 100k-250k a year) and they can be moderate in their spendings. 

One guy was a software engineer/manager for a company and he makes "a lot" of money but below 1 million a year. He owns a condo in Arlington, a very nice suburb in Boston, and him and his wife have a mixture of luxuries and regular household items. For instance, the furniture was normal looking and they had old antique things that looked like they came from a garage sale. But they also had enough money to afford all organic food, had high tech kitchen ware, a large BBQ and back porch deck with a lawn, and a nice car. Condo is of course very spacious with a sun room for plants, two large bedrooms, a large living room and big kitchen. A condo the size of a manufactured home that you would find in the Midwest somewhere. 

My personal estimate is 90% though. I don't deal in absolutes just probabilities. 

Life is all about probabilities. Take my word for it as I've studied every type of physical and social science and it's all based on probability. Dating, earning money, and anything is a probability game. A guy born poor has a .02% chance of getting rich; middle income person 5% chance; upper class 15%, etc. These aren't real estimates just a way of showing how life is.

If you graph a 2 d math graph of income versus probability of getting richer, you will notice it's exponential up to a certain point. When you get above 100k a year, the chances double that of someone who would make 50k a year and hopes to get richer as in a millionaire. What does this mean in reality? That the very poor or poor will most likely remain poor and the higher up you go the more chances of getting rich. I've seen this in a sociology/econ class. Many studies show this to be true. 

My second tangent for today.
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