The Psychology of Money: Chapter 9
4 min read · Apr 22, 2024
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“Spending money to show people how much money you have is the fastest way to have less money”
Have you ever caught yourself marveling at the sight of a luxurious Ferrari or a sleek Porsche, assuming that the person behind the wheel must be living a life of grandeur?
I certainly did, until several data points shattered my perception of wealth.
- More than 70% of the iPhones bought(in India) are bought via EMI or loans.
- Around 80% of cars and SUVs in India are financed and nearly 100% of commercial vehicles are bought on loans.
- Nearly 90% of home loan borrowers bought house below Rs35 lakh
- A fifth of personal loans taken in India is going into paying travel bills,
Modern capitalism makes helping people fake it until they make it a cherished industry. But the truth is that wealth is what you don’t see.
“ Wealth is the nice cars not purchased. The diamonds not bought. The watches not worn, the clothes forgone and the first-class upgrade declined. Wealth is financial assets that haven’t yet been converted into the stuff you see.”
