Why LOOKING Poor Is Important

Rich is visible, wealth is invisible. Let's talk about why it is so important to look poor.

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Chapters

00:00 Start Here
01:09 Looking Rich Is The Quickest Way To Going Broke
02:25 Looking Rich Burdens You With Liabilities
03:48 Looking Rich Makes You Live In Survival Mode
05:18 Looking Rich Makes People View You Differently
06:11 Getting Rich Is Just A Collection of Many Small Decisions
07:55 True Wealth Doesn’t Need To Prove Itself
08:56 Financial Peace Is Just Better

We often think that being rich is a very visible thing where you can see a person's money through nice possessions and an abundant lifestyle; however, this is not true. Many people who are rich and have a lot of money get that way by seeing the importance of looking poor. And when I say looking poor, I am not saying wearing worn out clothes and driving a terrible car, but just living a modest lifestyle where you don't flaunt your wealth. In this video, I share 7 reasons why looking poor is important.

1. Looking Rich Is The Quickest Way To Going Broke

Trying to look rich by making it visibly known is the quickest path to going broke. We often see this with professional athletes who will all the sudden start making millions of dollars and make their expenses high. Then, when they stop being an athlete and the money stops coming in, they have high expenses and no income or savings to back them up. Looking poor is important because it is a sustainable way to live in the long term.

2. Looking Rich Burdens You With Liabilities

The problem with trying to look rich is that you end up buying a bunch of liabilities, which are things you own. When you look rich you have credit card debt, auto loans, and high mortgages, and if something happens like you lose your job, you are unable to pay for these liabilities. Looking poor is important because you minimize your liabilities and buy more assets, which are things that provide you future benefit. When you limit your liabilities and buy assets like an emergency fund, index funds, and other investments, you are protected against life's surprises.

3. Looking Rich Makes You Live In Survival Mode

When you try to look rich and spend so much money on possessions, you end up viewing money as a means for survival to pay your bills because you are always running out of money and in need of money. Looking poor is important because when you limit your liabilities and buy more assets, your assets start making you money and you can view money as a tool instead of survival.

4. Looking Rich Makes People View You Differently

When you decide to make it visibly known to people that you have money, people will start to view you differently. Your family and friends might feel entitled to your money, you could surround yourself with phony people, and people could try to take advantage of you. Looking poor is important because it's better for people to not know how much money you have so nobody bothers you or tries to take advantage of you.

5. Getting Rich Is Just A Collection of Many Small Decisions

When you decide to look poor, what you are doing is making many small decisions every day to spend less so that you can buy more assets. Over time, these small decisions will compound into something much greater creating wealth in your life. Looking poor is important because it allows you to make more and more small decisions every day to build wealth.

6. True Wealth Doesn’t Need To Prove Itself

When people feel the need to make it known that they have money, they are trying to prove to other people that they have money. But what is the point? When you have real wealth of freedom, options, and flexibility, you don't feel the need to prove it to other people. Those things are so personal that you shouldn't care if other people know. Looking poor is important because the less you care about what other people think, the more you can build your wealth.

7. Financial Peace Is Just Better

I think, to some extent, everyone wants to have nice things because it's in our human nature. And although it is nice to have nice things, financial peace is just better. It's much better to sleep easy every night knowing that whatever tomorrow brings, you at least don't have to worry about money. Looking poor is important because although you don't have as many nice things, the freedom you get in exchange is much better.

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[humblebee]

Remember the wealthiest thing you can own is your health.

[lawrencedyke]

Money is a tool to make your life better. Alot of people mistake the idea of frugal living and looking poor, by not investing in themselves! No Improve yourself by learning new skills, saving, budgeting, Investing and achieving financial freedom to enjoy a fruitful life.
Wealthy is to be able to live freely

[ann]

‘Looking poor’ is the safest way to travel the world ;)

[jvzpscq]

You won't need to look poor or rich, you need to look clean & healthy.
Healthy is wealthy!

[sbw]

Spot on. I inherited a few million back in 2015 and there were a lot of hands expecting a deposit. Now I drive a Honda Civic and sold off all my excesses (Boat, Harley and Toyota Tundra). The less I own, the happier I get. I travel a lot now and splurge abroad...

My advice:

1. Be a minimalist.

2. Pretend to be broke when around friends and even family.

3. Keep your mouth zipped!

[TheFatesLieutenant]

When I see a large house I think "What a maintenance nightmare!" "Financial Peace" is worth more than all the rest combined.

[Afrinaturality]

Not looking rich doesn't mean you have to look poor. You can purchase good quality items that you need, will use and value and take good care of for a long time. I don't want to look poor. I want to look like I've made sensible financial choices, nothing ostentatious or to show off to anyone.

[christopherfleming]

My wife and I married young at 22 and 23. We had almost nothing to our name and we both worked low earning jobs. However, we were extremely frugal. We had no tv, no phone (it was 1997), no car, no mortgage, no debt. We lived in a crappy flat on the fourth floor without a lift (elevator for the Americans), but which was within walking distance of places we needed to get to. In those days I literally walked everywhere, up to 4 hours a day. We cooked our own meals, eating lots of cheap vegetables, potatoes, rice and beans. Our entertainment was reading novels (borrowed from the public library, of course) or playing cards in the evening.

Little by little, we started earning more. Then we started having babies. We never went out, our holidays were camping in a tent. We always spent less than we earned. We managed to buy a small house that we paid off in 4 years, sold that at a massive profit, then moved into a bigger one, paid that off in 6 years. Now we have 3 houses, loads of investments in different accounts, and live very comfortably.

The key is to start small, always spend less than you earn, and invest in stuff that goes up in value. If you do this, over time you will become rich.

[rinapravia]

I worked as a bank teller in Miami and let me tell you, most people had little or no money in their accounts. They look rich, drove expensive cars, but were broke. This was in Miami Beach. 😒

[MaryLawson]

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[dt]

Another thing is that when you look poor

- You filter your friends, you won't have friends who will use you
- You have peace of mind
- You won't have lifestyle inflation
- You won't have family and friends asking you for money bec you look like you don't have any

[milkyay]

I rather sleep at night peacefully knowing
- no debt to pay
- bills pay on time
- roof over my head
- food to survive
- have 1 year financial cushion in case of an emergnecy
- have retire saving in place
rather than buying things i do need to impress people I don't like and miss out on life quality.
Also looking ordinary won't attract you fake friends, since won't have money agenda when being your friend.

[yerfyyow]

As a poor person, I don't need to cosplay as a poor person.

[TheJoPaXXXX]

I drive my 23 year old car, living in my fullpaid house and have a nice bankaccount. Me and my wife live a nice life😊😊😊.

[janetpickel]

You don't want friends and relatives hitting you up for money

[disruptapps]

For me, 'looking poor' is a way to reject consumerism and is a fashionable way to revolt against being manipulated by the 1% ownership class.

[Revert]

I wanted a Gucci wallet so badly. Finally, when I sold my house a few years ago, I bought a Gucci wallet. It was the only thing I bought. (The rest went onto the loan of the new house, paid off my truck and went into the bank as an emergency fund). Today was the first time since I bought the wallet 2.5 years ago that someone said, “What a cute wallet..AND it’s a Gucci.” No one cared. I overspent on something to show off and no one cared.

[crazyadventuresandreviews]

I went looking at used trucks a few weeks ago and all the sales people walked pass me and headed towards the nice dressed customers, I was thinking I could out buy everyone in this parking lot and the salesman, but decided just to fix my piece of junk instead of replacing it

[tibork]

As a man my most important reason for not showing what I have is: WOMEN. I came from a poor family with two brothers, no girl/women EVER would go even to a single date with any of us, while the guys with rich daddy ALWAYS had a girl or most cases two on their sides. When after many years of struggle two of us became successful business owners and well off, women started to flock around us like moths around a light at night. So I now drive average cars, dress like everyone else, don't tell anyone who I really am, because we don't want the pests around us who just come because of WHAT we are instead of WHO we are. None of us have kids or have ever been married.

[Big_Mike]

When I was a kid I asked the font of all wisdom (aka my mom) "How do you know when you're rich?" Without missing a beat she responded 'You know you're rich when the money doesn't matter anymore." Which she defined as you don't have a burning need to splash it around and show off. This video proved that this is yet one more thing that my mom was right about!