I was on the Facebook and I came across a Jay Morrison video about starving now to feast later. I was immediately drawn to this video because on there he discussed frugality, sacrifice and asset accumulation (the big three and the core of my current beliefs as influenced by my Jewish mentor).
This is significant because most of the real estate guys we follow on Instagram don’t live this other side of wealth. They fly in the jets, they drive the whips, they have the big rings. They earn big and spend big. The problem is all this wealth could and should be used to amass more wealth not merely more quick flip profits. As Tobi said on Episode 58 of the podcast, we are great at making money but not so good at managing it.
That said, Jay made a great point. He made the point that most of us buy luxury items not just for the quality but because we enjoy feeling admired. This is significant because it shows how silly our spending is. We say “its high quality” but really we want the IG likes, we want the “you got money” comments. We want to feel like we are rich. Feeling like rich and being rich are two different things though.
When you pull up in that nice car or walk around with that nice bag people admire you, they want what you have and that is a good feeling. The problem is that for one, the person doing the admiring doesn’t know the full story (example, as I thought about this post I saw two chicks with huge LV bags hop into a early 2000s honda accord coupe) second, that admiration has nothing to do with the useful value of that purse.
That desire to be admired stems from a feeling a insecurity. That same insecurity is what marketers play toward as they siphon money from your bank account. In the end you are left with a pile of useless junk while they sit on a pile of money and assets.
This post will discuss why being admired is ruining your financial future.
Admiration is overrated
When I was a young lad as soon as I got some money, or got some stuff I would show it off, tell people about it and make it known that I got some new stuff. That might seem cool when you have lived a life lacking stuff but after years of having stuff you learn that it is better to be private about what you have. Why? Because this triggers ill will along with the admiration. The admiration quickly fades and turns into hate. I would go from a high of having stuff, to a low when I got one upped by friends. This was frustrating.
Admiration can also cause you to lose opportunities, to get looked over on deal, to lose the support of investors and partners. I believe that I have lost jobs because I was stunting too hard when I should have flown under the radar. I made it seem like I was above the opportunity or that I didn’t need the opportunity and I got chopped down like a tree. I got humbled. At this point in my life, I choose to fly low. I let my financial statement do the stunting.
“Your family needs assets more than you need admiration” – Jay Morrison
When you are being admired folks are simultaneously pulling support away from you. They think to themselves “they got money, why do they need my money”. This will cause you to lose customers and investors which will cause your business to become stunted even to the point of putting you out of business.
The private office I work in is owned by a massively wealthy family. The owner’s son has a Bimmer, and an Aston Martin that he never drives. Today he chose to drive it though. This is only the second time I have seen this car in the three years I have been here. The reason he doesn’t drive it is because he knows that employees will react to this.
When your employees see your Aston, or your Rolex, or your Louis Vuitton loafers they want raises, bonuses and extra vacation hours. They think “if you are doing well we should all be doing well”. This can ruin your business. Admiration might feel good but long term it can ruin what you built. Admiration is overrated because the temporary high has a tumultuous negative effect.
You never feast you keep stashing
Number two could have been number one to me. Now there is something about the Jewish culture that never really allows for the full stunt stunt (read prudently frugal and selectively extravagant). This is why you see that wealthy man who owns the entire block riding around in a used pickup truck. He can buy whatever he wants but he has that money working form him bringing in more money not depreciating in his driveway.
The key is that you always double down and get to work building indestructible wealth. So many of us think that when you make good money NOW is the time to finally live the life you “deserve”. The problem is that when you make good money you can save and invest at a larger level which actually helps you make bigger money.
This is what the wealthy understand. You never give up stashing. There is no end to this because wealth is the protection you need from a money driven world. In a wealthy world the ONLY slavery is poverty.
So when you make money, keep stashing, when you make bigger money, keep stashing, when you make even more money, stash some more. Stash until you have a certain level of wealth that makes you indestructible. So that no recession, oppression or depression could ever take you down.
Once you start feasting you lose. I like the quote from Gary V that as soon as you starting eating from your business as opposed to reinvesting the profits is when you begin your down cycle. You become stagnant, you stop growing when you stop stashing. Think about it. If you plow money and wealth and your high income into your savings and asset column every month you are growing. As soon as you start using that money to eat and live is when your account balances get stagnant. The same is true for business. When you stop investing you stop leveling up. Never feat, always stash.
If you stashed the amount of money you use to flash you would already be wealthy
The amount of money that black america spends on clothing, sneakers, cars, bags, entertainment, alcohol and tobacco could literally change the culture if it was just used to improve the culture as opposed to looking like we have it all together. Some experts say we have over 1 trillion in spending power. Meanwhile hoods all across America have $20,000 homes and renters. That admiration money is keeping us in bondage because we want to look like we have it all together.
The fact is that we don’t have it all together. We are focused on plucking people out of the hood instead of combining our resources to make the a hood a place you don’t need to pluck somebody out of. We have the resources though. Just look at your W2 to see all the money that disappears from the play play each year.
Have you looked at your W2 and saw how much money you made and then looked at your savings and realized of all that money you barely have $1000 saved? If you even have $1000 saved.. most don’t. That is sad. If you saved half of that you would be wealthier than the majority of Americans. If the culture saved half of that we would immediately be in contention in america and steps forward in closing the wealth gap.
They say that the average white family has a net worth north of $100,000 while the average black family has an average net wroth of $13,000. So if we merely sacrificed five years of saving half our income we could close the wealth gap. Looking at it this way is much more inspiring that the articles of doom and gloom that talk about low income and low business.
All we have to do is start saving and stop spending. We don’t have to out earn them, we don’t have to have our property values inflated. We don’t have to inherit any money. You don’t have to play their game but you do have to play a game and you have to have a strategy for how you play that game. The thing is though, its not a mystery. Immigrants have already cracked the code for winning in America and if you listen close enough I have given that strategy to YOU.
You have to play the very same game that immigrants play to not compete but to win. You can’t beat Lebron by trying to be Lebron. You beat Lebron by creating a team and a system that makes Lebron’s strengths obsolete. That is what immigrants have done, that is what we need to do.
We already have the wealth, all we have to do is stop giving it to Louis Vuitton and Gucci. *drops mic*
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Be great, invest well,