I have drawn this conclusion based on my observations of the super-rich.
This chapter has the purpose of asking you to question your wants.
- What do you want?
- Why do you want it?
- What do the rich want?
- Why do they want it?
The basics of economics teach us about supply and demand. It is balanced over price and quantity.
Where supply meets demand is known as equilibrium. Equilibrium is the point where price and quantity will match the demand and supply of products at the right point.
If there is a higher demand than supply, the price will increase. If there is a higher supply than demand, the price will drop.
That’s the basics of economics.
If we take this economic principle and we add psychology consideration, we can draw new conclusions.
Psychology has helped us realize that we want what we cant have.
A fundamental truth in human nature.
The easier things are to obtain, the less desirable they become.
This works in relationships as well as physical possessions.
Economics studies peoples demand products and psychology studies why we demand products.
New rich tend to buy fancy sports cars where old rich don’t. Just because they can afford it doesn’t mean that they will buy it.
New rich tend to be flashier because they previously experienced a lack of access to finances to afford these goods. Where old rich have always had access to funds, they never felt that they couldn’t afford it, so they never felt the demand for it.
The super-rich (old rich) don’t wear branded clothing or drive fancy sports cars. They dress well but not branded.
Their demands are different.
This perspective will hopefully get you to think about your desires and wants.
If you were super-rich, would you still want it?
If you know you could afford it or if you bought it, would your desires be met?
If you were super-rich, what would you want?
Have you ever bought something you always wanted, and once you had it the excitement of getting it had gone.
As if once you took ownership, your desire ends.
This is what new rich often chase after. All the things they once thought they couldn’t have.
Once they buy all their primary desires, the excitement goes.
New rich then tend to chase after the next exciting purchase (and buy bigger).
Old rich/ wise rich focus on growing wealth rather than finding ways to spend it.
To learn from the super-rich, I recommend thinking about the transactions backwards.
If you owned it, what would you do with it? How often would you use it? Would it really be used often? Where would you store it?
The superrich doesn’t buy unnecessarily. It adds chaos to their lives. They like simplicity.