I'm looking for an apartment in New York City because I will be moving there when I graduate in December. However, my search today is much different than it was earlier this year, and let me tell you why. When I first started apartment hunting I was looking for really nice apartments; you know, big ones with big bright windows, a 24 hour gym, and a lobby. Now, if you are familiar with New York City prices, you know that a tiny, hole-in-the-wall room (not an apartment, just a room) costs you no less than $800 a month (if you're lucky). This is why some people rent out their closet space! It's true! Seriously, it is. Anyway, I wasn't about to live in something like that; it had to be nice. The rooms I was looking at had price tags of over $1,300 easily. I didn't care that I would end up blowing off almost all of my work money on just rent, as long as I lived in a place that was trendy and luxurious. And that would still be my mentality today if I had not learned the difference between rich people and those who are truly wealthy.
Here's the difference: Rich people are those who are obsessed with making money and flaunting it. The mentality of these people is, "Woohoo, I have all this money! I have to dress the part now! I need to get the most expensive clothes, the latest cars, and the expensive mansion! I need to go out every night and pop open bottle after bottle of Patron, Grey Goose...the whole nine yards!" And yeah, they have a great time, but it's short lived. Then, they are caught having to dramatically decrease their spending after a sudden realization that they have depleted all of the money that they've worked so hard for. Or worse yet, they don't realize the situation they've driven themselves into and just keep living that lifestyle while putting everything on a credit card. Unfortunately, this is exactly how I used to think.
Now, here is the mentality of the truly wealthy people: these people live humbly. Their money stays for the duration of their lives because they know that for it to last they need to live HUMBLY in the beginning. They think above and beyond the rest of the population, look towards the distant future (not just instant gratification), and realize that taking a step down temporarily will be worth it in the end. Why rush to buy yourself a mansion (that you're only going to use 1/16th of) when it's only gonna give you hundreds of thousands of dollars to pay in just property taxes alone each year! That's an unnecessary waste of your money. Or why pay over $200,000 for a brand new car? Just because you can? That's ridiculous. And yet, this happens all the time to newbies with money and then they're left out in the cold. Now, I'm not saying you have to live in a hole-in-the-wall. You can definitely upgrade to nicer things but do so wisely and always ask yourself before every purchase, "Now, is this really necessary? Do I really need to blow off all of this money on a mansion right this second, or can it wait till I've made a plan of how to make my money last me for a while." Just go ask those who are truly wealthy to this day. They'll all tell you how they didn't start off with the $200,000 cars.
All this ties back to my apartment hunting story (See I promised it would all blend together in the end!). Technically, I could get the really nice fancy apartment if I wanted to, but then I'd have no money for anything else. I'd be maxing out credit card after credit card to buy the real necessities in life. Sending myself in a downward spiral, I'd eventually have to frantically find someone to take over my lease so that I can downgrade to something more suitable for an entry-level worker fresh out of college who is just starting her life in the "real" world. Because that's what I am. I'm no millionaire. Heck, I'm barely even a thousandaire! (i know what you're thinking! Just go along with me and pretend like its a word) So, instead of taking the, "Woohoo, I'm gonna make all this money with my new job," route, I'm gonna do it the wealthy people way. I'm gonna be smart about my money, know that I want it to last, and move into a decent apartment that's more suitable for me and my situation. And you know what? It's gonna pay off in the end because from here, after planning out my money carefully, I can only go up. In ten years from now, when I'm living in a nice house with my family and still have money to last me a lifetime, I'll look back and congratulate myself for thinking smart and having humble beginnings.
That's what the truly wealthy people are doing today.
With all my love,
Hennely
4 comments:
i completely disagree with you. i mean if you have the money, you might as well spend it, especially with the economy nowadays, if youl held all your moneey in bank, it could disappear in seconds. Banks are closing out and many people are seeing their accounts zeroed out. My advice is to buy things, that way you have it in object form, becomes more valuable ocer time, and when your in need of money, sell.
Hennely, I completely agree with you. whoever left the first comment sounds exactly like the "rich" person that you describe.. someone who will never be truly "wealthy."
to the anonymous commenter: nobody's bank account has zeroed out since the great depression. just thought i'd let you know...... FDIC!
and btw putting your money in 'object form' probably isn't a smart idea since most objects depreciate and lose value. but yeah, do your thing.
anyway thank you Hennely for the insightful blogs. i am looking forward to the next post!
Lol yea I have to agree with you also. Although understand where the rich person is coming from as do you.
Having nice things is an important part of enjoying your life but you're right that they should be purchased only when it is smart to do so.
I love these blogs tho! Keep it up
Hi guys,
I definitely understand where both sides come from, you all have excellent points. But as gemini said, it's great to have nice things, just do so wisely instead of going crazy with newfound money. To j and gemini, I will definitely keep posting. Thanks for following :)
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