Conspicuous

Conspicuous Consumption is spending money on luxuries in order to signal economic power. It is meant to provoke the envy of other people and raise social status. Often it is more a sign of someone who is “newly rich”, to signify a jump in the standard of living. Conspicuous Consumption is a form of stupidity tax. Paying excessively for something is firing the money. Money that is spent can’t work. Money that is spent can’t grow. Conspicuous Consumption can also be debt financed. The big house, fast car, flashy jewellery, and lavish feasts simply committing the person to having to do work to pay for that later. Ironically, someone earning R10,000 a month can be closer to financial freedom than someone earning $1,000,000 a month. Financial Freedom depends on the dance of the money coming in, and the money going out. What you see doesn’t tell the whole story. Time does.