Supergreens Green Drink

There is a phrase that my brother and I often use. It's called "crushing at the light." What does that mean you ask? Well, it the practice of putting one's money on display for the world to see how "well off" he/she is supposedly doing. A prime example is of this is when an individual pulls up to a stop light in an expensive car, thinking that he/she is better off financially than the individual next to them in a more modest vehicle. In this example, the individual with the more expensive car is crushing the other individual at the light. Now, it may be true that in some cases the individual with the more expensive car is better off financially than the individual in the more modest car, but in many instances that is just not the case.

Books such as The Millionaire Next Door and Rich Dad/Poor Dad, have long argued against the practice of over indulging in material consumption when there is no true wealth behind it, but it seems as though their arguments have fallen on deaf ears in America, as I see luxury car after luxury car racing up and down the streets of New York City. A place where the median salary of $55,000 a year can barley afford you a middle class lifestyle because of the city's exorbitant cost of living expenses. Nevertheless, New Yorkers have been purchasing material items on a constant basis, even putting themselves into extreme financial hardship just to give the appearance of wealth that they really don't have. When I hear of the dismissal savings rate in America, the low 401k balances, and the high credit card debit, it is no surprise. It's all going to support this notion of crushing at the light. The problem is that this way of thinking gives people a false sense of pride and puts them in a very risky financial position, which turns the initial high of purchasing expensive items into an albatross later on. It is no surprise that America finds itself in these trying financial times. There is no financial leadership at the federal , state, or local levels. And there is no financial leadership in many of America's homes.

With inflated home values and easy credit, Americans went wild buying everything their hearts desired. But, that is no longer the case. Crushing at the light is in jeopardy as world markets fear an economic collapse because banks are restricting the free lending they were engaging in for the last 5-7 years. No more easy money. And as home lose value, that means less equity for Americans to spend on over indulgences. What are we to do? How about practicing a little fiscal restraint and save your money? How about practicing some delayed gratification? How about losing the addiction to material consumption?

I argue for something more tangible America. I argue for true wealth accumulation and not this flashy/impostor stuff we have been engaging in. You see, if you are spending on these luxury items, and by no means am I relegating these items to only luxury cars. No, the luxury watches, the luxury apartments, the luxury furnishings, and the mac mansions. Every thing that inhibits your saving and investing is what I am arguing against. Why am I so passionate? I am so passionate because the global dynamics are changing. America is farming out thousands of jobs overseas that will never come back, defined pensions are going by the wayside, as is medical coverage. Once deemed developing nations like China and India are ready to surpass America as economic powers in the coming decades, and many Americans are behaving as though we as a nation can afford to spend like this. What happens if you lose your job today, how would those luxury items support you? What happens if your child gets really sick and your medical coverage doesn't cover the costs, do you think the doctors will take your Gucci shoes as payment? Think America!

I know this might sound ridiculous to many people, but there is a global economic shift occurring, and instead of continuing to spend recklessly for the sake of impressing strangers on the street, saving and investing your hard earned money is what will make you truly wealthy. A man once told me, wealthy people always have their money working for them. What you call extravagant, maybe be pricey to you, but is what they can easily afford to buy without hindering their financial future. Basically, they don't put themselves into risky financial positions for the sake of looking good to others. They understand and value the power of saving and investing, while everyone else is spending in an attempt to mimic their lifestyle.

I ask to all those crushing at the light-Is the car note, insurance, and gas that you are paying for that luxury vehicle hindering your financial future? If you are being honest with yourself and the answer is no then fine, continue to do what you are doing. If the answer is yes, then you need to make a drastic change because very soon, you may find yourself needing the money that you are wasting now.

Save and invest. Learn about the market. Learn about real estate. Learn about money and finance, and then start building true wealth. After you have gotten to a point where your money is working for you, then you can start spending in a responsible way, because your financial future is secure. But anything other than that is just playing with fire.