By Joyce Chuah, CEO of Success Concepts Life Planners
Placing too much importance on appearing rich can affect one’s net worth. One may want to delay self-gratification in order to build a strong financial foundation.
I once asked someone who looked like a million dollars on the outside but was totally broke, this question: “Is your self-worth destroying your net worth?”
Some of us have defined our self-esteem from the external things - the car we drive, the handbags we use, even the pen we write with. We want to be seen as “rich and successful” but we are secretly struggling with our finances.
Even if we are not broke, some of us have placed the external outlook of ‘looking rich’ as more important than the milestones in our lives, for instance ensuring a secure retirement or building a strong net worth that can last throughout our lifetime.
Wanting to ‘keep up with the Joneses’ maybe due to a lack of self-esteem. Those who buy things they can’t afford sense a boost in their self-confidence by having these things, particularly in the public. Having luxurious items is fine as long as you know your net worth can sustain it and you do have a financial plan in place. However, if it is draining your pockets, then you need to wake up and change before it is too late.
Stop placing so much importance on demonstrating socio-economic superiority. Rather, focus on owning a strong financial foundation that can sufficiently meet your life’s goals. Delay instant urges to gratify your self-image until you are sure your net worth says you can afford it.
If you do indeed have a self-worth issue, fulfil the void with family and meaningful relationships, a heightened appreciation for self, charitable works or even spirituality for some. There is nothing wrong looking ‘less rich’ than others as long as you know that happiness is sourced internally and not externally. After all, money does not buy you happiness but managing it well can get you there.
I urge you to ask your self this question now: “Which is more important: your self-worth or your net worth?” Speak to your financial planner and put your financial life back in shape.
