In other words, it sounds like a sermon on loving money for itself instead of loving it for what it can buy you. Or, if you read it charitably, it's a sermon on loving security more and short-term pleasures less. As much as I sneer at expensive fashion and gravitate toward the <$10 wine bin at the grocery store, this article strikes me as nothing but unhelpful moralizing. Yeah. I get it. If I don't spend money, I'll have more. Yeah, I really, really get that looking good and living it up is a vacuous pastime -- I'm totally with you on this one -- but it's the most common passion on the planet, and it's a cop out to tell people to stop enjoying the one aspect of life that gives them the most pleasure and call it financial advice.
What a lot of people don’t realise is that “short-term pleasures” cost a lot more when you’re older. In your 20s and 30s, you don’t need much more than a computer and a bicycle to be perfectly content. You have lots of energy to work, study, take cheap outdoorsy vacations, and cut your own lawn. But at some point, you start to find those things significantly more wearisome. That’s when it’s really nice to have the financial freedom to quit your job, eat in good restaurants, and outsource all of your home maintenance. By far the majority of people won’t achieve that level of financial freedom unless they defer a large proportion of their income from the first half of their career to the second half and to retirement.
Evidently, many people must overcome significant psychological obstacles to save their money. That’s why there are so many personal finance books trying to explain the same idea in different ways. Some emphasize the time value of money. Others, how expenses tend to increase over one’s lifetime. Stanley tries to reduce the urge to spend by showing that many big spenders are not actually rich or financially secure. The success of “The Millionaire Next Door” seems to be evidence that a lot of people find this approach helpful.
I once went to a nutrionist and she ask what I eat for breakfast; I told her and she said "you know how many calories were in that bagel?" and I told her. She looked puzzled, then I told her "I wasn't fat because I was stupid"
Behaviors with food and even money are learned early on and until people choose to unlearn them; they will be fat and poor.
>Everyone know what kind of food to eat, they just don't.
I think the world you're looking for here is "ignorant". They know. Stupid is knowing what to do and still doing the exact opposite. And I point this out as a stupid person (about some things).
If so, then getting the word out may actually help people make better decisions. If they still want the BMW for other reasons, fine.
Unless they learned the "correct" behaviors early on. In that case they have the luxury of not thinking about the basics and expanding upon what they already know. Privilege comes in many forms.
It is not just about spending less, it is about getting people to realize that rich people do not do show of there riches buy buying crap. (86% of luxury cars are owned by people with less than <$1m). So maybe you should not buy that crap either?
It is only a recent event that we have become such a consumer driven society, just after WW2 when we had all this extra factory producing capabilities (due to the war), and the advertising industry really kicked it up a notch.
Some people are buying nothing but garbage (there are whole markets based on selling garbage), but I think right now there are also people trying to move the money they have right now into some other source they trust more. If you try to build a house in Switzerland right now be prepared to wait. A lot of people have emptied their pensions to build houses (they cost a lot in Switzerland) since the crisis hit.
Secondly, there's a lot to be said for peace of mind. Who is richer: someone who lives in a fancy house and constantly worries about losing it, or someone who lives simply, has no debt, has saving, and can basically do whatever they want?
Wealth is the extent to which you can let things alone and still be comfortable.
If the same people then don't end up complaining that they have no money left, fine.