“Money Can’t Buy You Class“, that’s the new song from Countess Luann Delesepps that kept ringing through my mind as I chatted with a friend last night. This is an old college friend and we caught up on old times and where we both are in our respective lives today.
As our chat went on, he started discussing ad nauseum how many cars he drives, the new home he just bought in an exclusive neighborhood on the North Shore, the new designer shoes and clothes he buys weekly and blah blah blah! Don’t get me wrong, I celebrate all of my friends when they experience financial increase in their lives but I get turned off easily when they begin to act “new money“. It reminds me of the rappers on TV where all they can talk about is the diamonds in their new platinum chain and then see them in 3-5 years with nothing to show for all of it.
There is absolutely no need to tell everyone how much your house, shoes and cars cost unless you’re filling out a mortgage application or a fellow personal finance blogger who discloses this information for self and reader motivation. To do otherwise wreaks of classless behavior and as we all know, money can’t buy you class.
I appreciate books like Millionaire Next Door because it tells the lifestyles and habits of people who truly value money in such a way that it does not define them but used as a tool to create abundance and support their lifestyle. You’ll never catch me bragging about buying brand name shoes or clothes, our making countless references to the kind of car I drive or acting as though all these material things define me in any way whatsoever. When I see someone doing that I always think “they must be new to having some kind of money”. SMH
How do you tell if you’re old or new money? Check out my list here:
Old Money Habits
- They are frugal in their spending habits. They realize that the car you drive does not measure wealth nor by the house you own.
- Values saving and long term investing for financial stability
- They believe that financial independence is more important
than displaying high social status.
- They live well below their means, not on borrowed money
- Values giving back to the community
New Money Habits
- Spends money in the name of social status and for the sake of impressing others
- Live well above their means on borrowed money
- Has nothing to show for the “bling” in just a few years after coming into money
- Only discusses how much they spend and not how much they invest in themselves and their future (retirement, community projects, charity etc)
My advice? Share how you make, manage and invest your money, otherwise you risk looking foolish blinging out with nothing to show for it a few years down the line.
Where do you fall? Be honest! Old or New Money?