12 Tips for Recognizing Fake Rich People

As Warren Buffett himself has said, true wealth is not measured by the things you own, but by the financial freedom and security you have.

Number 1: they drive a car that doesn’t match their house. An easy way to spot a "fake rich" person is by observing the car they own. A "fake rich" person may own a car that does not match their socioeconomic status, such as a luxury car in a mediocre neighborhood or a large car and a small apartment. They may also prioritize owning a luxury car over having a comfortable living space, or make sacrifices such as renting a small room with multiple roommates in order to afford a luxury car. On the other hand, a truly wealthy individual understands that owning a luxury car is not a priority and that a reliable, functional vehicle is all that is needed for transportation. They would not make sacrifices or prioritize owning a luxury car over their own comfort or financial stability. By observing the car a person owns, you can easily spot a "fake rich" person.

Number 2: they don’t value time. As the saying goes, "you can always make more money, but you can't make more time." A person who is truly wealthy understands the value of time and makes it a priority in their life. They are mindful of how they spend their time and make sure to use it efficiently. On the other hand, a person who is "fake rich" may not be as conscientious about time management, and may be more inclined to engage in leisure activities or be less punctual. They may not understand the true worth of time, and may not value it as much as someone who is truly wealthy would. Those who are truly wealthy tend to be dedicated to self-improvement and making the most of their time. They may engage in activities such as reading, working out, practicing mindfulness and spending time with loved ones. They have a balanced approach to life and understand the importance of self-discipline in achieving and maintaining wealth. This self-discipline is a key characteristic that sets them apart from those who are not truly wealthy.

Number 3: they are obsessed with appearing fashionable. People who are "fake rich" often cling strongly to the idea of dressing to impress. They believe that wearing expensive clothes will garner attention and validation, so they will always be seen in attire that displays their supposed wealth. Meanwhile, those who are truly wealthy may not necessarily dress in a way that immediately screams "I am rich." In fact, they may choose to dress in a more understated way, so that the public is not immediately aware of their wealth. In a 2016 Reddit Ask Me Anything, Bill Gates was asked about the one area where he is frugal and he replied that he doesn't like to spend a lot of money on clothing or jewelry. He also mentioned that Steve Jobs, who is known for wearing the same black turtleneck, and Mark Zuckerberg, who often wears the same t-shirt and hoodie, do it to limit decision fatigue. They understand that the fewer choices you have to make, the more energy you have left to focus on more important decisions. So, if you notice a person who is overly concerned with putting on a flashy and over-the-top outfit, it may be a sign that they are not truly wealthy.

Number 4: they buy liabilities. Individuals who are "fake rich" often feel the need to flaunt their supposed wealth by buying items on credit or through monthly installment plans, whether it be a luxury item such as the latest gaming console or designer handbag. They prioritize instant gratification, even if it means taking on debt. On the other hand, truly wealthy individuals tend to avoid buying liabilities on credit, as they understand the importance of using credit only to acquire assets that will generate more money and provide a long-term benefit, unlike those who are "fake rich" who prioritize impressing others. Individuals who are "fake rich" often take out loans to buy goods solely for the purpose of impressing others, without generating any income from these purchases. This leaves them in a precarious financial situation, as they are now burdened with loans and interest payments that they have to make. This behavior is financially detrimental in the long run, as they are not generating any revenue to offset these expenses.

Number 5: they prioritize brand image over product quality. A "fake rich" person may be inclined to wear fake products as long as they prominently display a well-known brand name such as Christian Dior or Versace. This is a clear sign of a "fake rich" person, as they prioritize the appearance of owning expensive, branded items over the actual quality and authenticity of the products. They do not care about the appearance of wealth but the actual wealth.

Number 6: they always brag about their plans. The next sign to spot a fake rich person is their constant chatter about their plans. They like to boast about their new, high-potential ideas, often claiming to be working on something big. However, these claims are often empty, as fake rich people tend to be all talk and no action. They fantasize about a successful future but lack the discipline and focus to turn their dreams into reality. They may brag about their upcoming, potential multi-million-dollar projects, but they often fail to put in the consistent work and effort required to bring these plans to fruition. This lack of follow-through is a key difference between fake rich and truly wealthy individuals, who tend to focus on one goal at a time and put in the necessary work to make it a reality over the long-term, rather than just a few months.

Number 7: they don’t have a financial safety net. Another sign of a fake rich person is that they hardly have any savings. This is because they are too preoccupied with investing in their appearance and how people perceive them. As a result, the fake rich find it hard to keep their money, opting to blow it on things that will make them look rich. Therefore, if an emergency arises, they will have to borrow money, leading them to get caught in debt and have to pay interest. What sets the fake rich apart from the truly wealthy is that the latter always set aside a portion of their income as savings to aid them in times of need or future opportunities. They are always able to capitalize on worthy opportunities because of the savings they have. On the other hand, the fake rich will not be able to fund themselves on quality opportunities due to their lack of savings.

Number 8: they constantly talk about money but lack financial literacy. A person's conversation often reflects their thoughts and preoccupations. For example, a person who is fixated on the idea of appearing wealthy, or a "fake rich" person, will often speak about money and material possessions. They may talk about the price of a new pair of shoes they just bought or the cost of a new phone they just got, as money is something they are always thinking about. On the other hand, people who are truly wealthy tend to rarely mention money, as it is not a concern or preoccupation for them, they already have enough and it's not a problem for them. Many people may seem knowledgeable about financial matters when discussing them on a superficial level, but if you probe deeper, they may not have a thorough understanding. They may not be able to provide specific details or examples of how they've built their wealth, as it is not something they have personally experienced. This lack of financial knowledge is indicative of those who don't truly have wealth, as those who do, would have gained it through their own experience and knowledge.

Number 9: they constantly seek the approval of others. Fake rich individuals are preoccupied with how they are perceived by society and constantly seek validation from others, particularly those they perceive as being of lower social status. This can be observed on social media, where fake rich individuals are overly concerned with the number of likes and followers they have. They crave appreciation from others as it boosts their confidence and fulfills their ego. In contrast, truly wealthy individuals do not feel the need to impress society or gain validation from others, they are more likely to be indifferent to what others think of them, even on social media. They don't feel the need to show off their wealth because they are already making money, and validation from others doesn't bring them more money.

Number 10: they always compare their possessions and status to those around them. Another indication of a "fake rich" person is their tendency to constantly compare what they have to what others around them do not have. They may boast about their latest luxury purchase and make a point to highlight how others do not have it. They are motivated by a desire to impress and please others by showing off their wealth, rather than being content with what they have. On the other hand, truly wealthy individuals do not feel the need to prove their wealth through material possessions and do not compare themselves to others. They don't have the need to show off their wealth to other people. A sign of a "fake rich" person is their preoccupation with acquiring branded goods, not for the benefit of others, but solely for their own pleasure. They will often compare what they have to others around them, which is a clear indication that they are not truly wealthy. They are driven by a desire to impress others through their material possessions and not truly valuing them for themselves.

Number 11: they continuously strive for bigger and better possessions. Fake rich individuals are often preoccupied with impressing others and keeping up with the latest trends and fads. They believe that by constantly staying current and appearing to be wealthy, they will be perceived as part of the elite class. This mindset leads them to constantly update their possessions and spend exorbitant amounts of money on trendy items. This behavior extends to financial opportunities as well, where fake rich individuals often boast about potential money-making ventures, yet lack the follow-through and discipline to bring these plans to fruition. Instead, they spend more time and energy on creating the appearance of success rather than putting in the hard work and effort required to truly achieve it.

Number 12: they constantly feel jealous of others' possessions or success. Faking oneself is when a person alters their true self to conform to a certain image or standard. This often arises from envy of others. When someone envies another person, they may feel compelled to change themselves in order to appear superior to the person they envy. A "fake rich" person may constantly strive to acquire bigger and better possessions such as a larger house or more luxurious car, driven by envy. In contrast, a truly wealthy individual is content with what they have and does not feel the need to compare themselves to others. They may not even have the time or inclination to observe others and feel envy. On the other hand, a "fake rich" person is preoccupied with being envious of others and is driven by the desire for recognition as a wealthy person.