Stop Trying to Look Rich | Growing Money With Sean Trace

Walk through any mall and you'll see luxury brands, expensive watches, designer bags, and people chasing the appearance of success.

The problem?

Looking rich and building wealth are often two very different things.

In this episode of Growing Money with Sean Trace, I explore why so many people spend money to impress others, how lifestyle inflation quietly destroys financial progress, and what truly wealthy people often do differently.

We discuss:

• Status vs. wealth
• Lifestyle inflation
• Social media and comparison
• Assets vs. liabilities
• Financial freedom vs. appearances
• How to stop spending for validation

This isn't about avoiding nice things.

It's about asking yourself one simple question:

Are you buying it because you want it, or because you want other people to notice it?

What's one purchase you regret making just to impress someone?

Transcript

SPEAKER_00 0:00

I got some advice for you guys. And this is the advice that I have. Stop trying to look rich. Now we all do it. God, I'm falling down. Now we all do it sometimes. And one of the most expensive hobbies in the world is trying to convince other people that you're successful. And then one of the ways that we often do this is with things, stuff that we can show people, the little things that we buy to try to make people feel like we're getting ahead. But the reality is that sometimes that can dig us into a really big hole. You know, many people spend money on things that signal success instead of things that actually create success. Well, I'm trying to come up with some different solutions in my own life. And one of the first things that I'm doing is buy assets before luxury items. You know, like what might an asset be? Well, for me, an asset is often something that I can use to create more wealth. Things like a new camera, maybe some new software that allow me to generate more wealth. But those things by themselves are not all of the picture. So what else do we have to do? Well, something that also helps me is to delay major purchases. I like the shiny things, and I'm always able to justify different things that would help my company. You know, it's really easy to do. Hey, this thing is gonna help me get ahead. But when you really, you know, think about it and push comes to shove, that might not be something that actually helps you right now. You know, I'm shooting this on the DJI Osmo Pocket 3. Man, I'd love the new Pocket 4 Pro and the uh Insta360 has a new little like camera like this. But what I realized is that they're not necessary. This works just good for most of what I'm doing right now. Yeah. The third step that I like to put into play is to ask whether that purchase is gonna grow my wealth or just display it. You know, if I'm having something that I use every day, like this camera, and it's something that I use and it grows my wealth by creating visibility and things like that, then it's probably a good thing to get to buy, to get, and to use. But if it's just something that's gonna show your wealth, you know, that really isn't gonna move the needle in the direction that you need it to be moving for your future money and and true wealth. Now, the other problem that people run into, and I deal with this a lot. I'm here at the mall right now, and there's so many things that I want to buy. And I feel like, hey, maybe I've got the money to do that, but right now, uh, it might not be needed. That's because we're looking at lifestyle inflation. Now, every raise becomes a nicer apartment, a nicer car or a bigger monthly payment. But the reality is those might not be things that you need, you know? And the problem is that as you start buying those new things that you think you need, uh, financial freedom will never arrive because you keep moving back the goalpost with every you know step and level up that you think that you're achieving, but really you're just spending more money. Um, so what can we do? What are some solutions to lifestyle inflation? Number one, increase your wealth before you increase your lifestyle. I mean, I'm talking like truly increase your wealth. So, what can we do? Step one, maybe start off by saving part of every raise. You start making more money, well, take that money and put it into your savings so that you are actually creating true wealth, a buffer of some sort, whether that be an emergency fund, whether that be retirement accounts, it's gonna be something that can really help you. Another thing that I like to do is to increase automation. And my financial advisor has been working with me on this, and you know, it's increase investments automatically. So if I'm getting some extra money, I am immediately putting a large portion of that into my investment accounts and working on this, not there yet, but she's helping me set up these automations. And then the last thing is, you know, sometimes you do need to upgrade things. We had to get Eilani a new piano recently because the old one died, and it was the best thing we could do, but we were able to do it slowly and intentionally. You know, Eilani was practicing on her mom's 20-year-old piano for five years before we upgraded to the new one. It was a slow, step-by-step thing, and we were intentional about it. We picked a 50-year-old wooden piano, a Yamaha U1E, but it was a good buy, it was a good deal. And the reality is Eilani has been playing Bach on that piano. So, you know, we figured that it was a good move and it was something that was justifiable. And we didn't feel bad about it because we had planned for it, we thought about it, and it was the right move. Now, one of the other things that I see a lot of people do is they seek validation through their purchases, you know. You go out and buy that new thing. Sometimes we aren't buying the product, we're buying approval, we're buying admiration or feeling of belonging, you know, and that is fun, it feels good, but the reality is most of the people are not paying attention to what you wear. Most of the people are not really into that game. Remember Biggie Smalls, he would talk about this one song where he was sewing like fake little like uh lacos alligators onto his shirts when he was a kid, and uh he raps about it in one of his songs. And what's funny is that here he is doing something that he thinks is gonna make people get attention, but did it really? Not really. Biggie went a whole different way and you know went a whole different direction. So, what can we do to start separating these things out? Number one thing I would say is first of all, separate your self-worth from your spending. Uh, step one. Uh, here, identify why you want an item. Now, if you want this camera because it's gonna help you with your business, that's one thing. But if you want that new, those new shoes that look super cool because you think everyone's gonna think they're cool, that might not be the best reason to get it. Now, the next thing I like to do is step two is ask if you're solving an emotional problem. If you're solving an emotional problem instead of a like a business problem, might not be the best buy. You know, I'm doing this because it makes me feel good. Now, granted, you know, I like to buy things and we can budget in those things that are fun. That's great. You know, I like to budget in guitars. I'm not a great guitarist, but guitars are one of the things that I do that gives me joy and brings me fun. So we did that for my wife. We bought a new karaoke machine. Why? Because she's a singer, and that singing is something that relaxes her, but it's also part of her work, you know. So it's not about self-worth, but those things are justifiable and they're useful. But if you're doing it just because you're like, well, everyone's got that, might not be the best buy. Now, the last thing is to build your confidence through accomplishments, not purchases. You know, buying things is fun, buying those things that are shiny and look fun. It's great fun. And you know what? Sometimes they're needed. Like I'm here looking for some new wine glasses at the mall for barrels and roots. Why? Because my wine glasses got broken in my last move, and I need new ones. Now, that's a justifiable purchase, and I'm here at a beautiful mall looking for some of those, as well as a teapot. I need a teapot. This tea helps me focus, it's something I really enjoy. But those are not things that are needed for me to have self-worth, they're just things that are important for what I'm doing and what I'm building, but they also bring joy, and joy is good at times, you know. Now, last off, one of the things that I think is really important is focusing on income instead of assets. This is a problem because people aren't aware that, you know, they're draining uh the whole pool. It's like if you put a big swimming pool in your backyard, right? But you have someone who's pulling water out of there every day, and you're just like pulling water out constantly, and then you go in to take a swim and there's no water in the pool. Well, if there's no water in the pool, you're not going to be able to use that swimming pool and enjoy the swim. So, what can we do? You know, well, things that we have to think about is a higher income can disappear quickly. Assets continue working long after you've earned the money. So, when you've invested in real estate, when you've invested in different things, it's really helpful, you know. Uh, and that those investments can help grow your money. You know, I'm actually gonna go over here and look at a camera because I need a new microphone for my wife uh when she's doing live recording. That's something that I need. Let me take a peek real quick and see if they have one. Good cameras, no microphones. Gotta keep looking. All right. Now, what are some solutions that we can have? Solutions to look at. You know, you're focusing too much on spending versus uh your assets. One of the things I think is important to do is to measure what you own. You know, what can we do with this? Well, if you can start tracking your net worth, you know, my financial advisor has me using right capital where it's all broken down in front of you. You look at what your assets, what you're making, and it gives you a really clear snapshot of where you're at financially. And when you have that clarity, it's a it's a really good thing. Another thing that I think is really important is one of the reasons I titled my podcast, Growing Money with Sean Trace, is to focus on growing investments. When you can start growing your investments, you are moving your financial wealth in the right direction. And, you know, it's a thing that's important to do because if we're not focusing on growing those assets and those investments, you're gonna be stuck pretty much forever at this same level, you know, whether that's real estate, whether that's investment portfolio, whatever that might be for you, that's gonna help you grow your net worth. And then the last thing that I think is really important, and then again, I'm working on this, is building assets that produce future income. And you might sit there and go, Oh, Sean, I don't have the money to like buy a house. I don't have the money to do that. Well, you know what? Starting off investing small amounts in your retirement accounts doesn't have to be a huge amount. Yeah, $10, $20, $50. Start putting it away. But you can also invest in other things. I'm investing in my podcast, I'm investing in my brands, both you know, the Sean Trace show, Growing Money, Barrels and Roots, and Full Battery Media are all brands that I'm investing in. That IP is also something that I own and also an asset that can generate money for me long term and wealth. Another problem that is happens a lot is that people start comparing themselves to everyone else. This is a problem because comparisons create endless dissatisfaction. You know, oh well, Bob, I've got some beautiful guitars in my house, but if I look at the guitars my friends have, I'm gonna be like, man, I wish I had those guitars. But they might look at what I have and feel envious as well. So stop comparing. You know, one of the solutions that you can hear is just define your own finish line. And this is one of the things that is important. And I think for financial awareness and wellness, people have to figure out their enough number. What is enough for you? You know, I don't need to be Elon Musk rich, but I do know that there's a certain number that would make my life much easier. So clarify your personal financial goals. That's step one. When you can get clear, oh, that smells so good. Bed, bath, and beyond. Smells nice. When you can clarify your personal financial goals, you can get really clear about what you want to build and what you need at the end of the day. Now, step two, I like to think about this. Stop measuring success against strangers. Now, I'm walking past some people that have some nice clothes on, maybe a little bit nicer than me, but I've got an Odie hat. I don't need to compare myself to them. I can just sit there and go, this is where I'm at, and this is good for me. Because when I know that I exist in my own sphere and different things that are important to me than what are important to them, then I don't have to get into the comparison game. For me, I invest a lot of money and time in Eilani's education, tutors, classes. Right now, she's outside finishing up with her classmates, a dance class, and that that's important to me. So I have to figure out what is my track, and that's step three. Track progress against your past self. You know, this month I set up a more clear spending tracker so I can be sure of where every dollar is going. And you know what? I tried to use some of the apps, didn't work for me. So I created a simple uh Google Sheet to look and chart where is my money going. And I simplified it because man, some of those budgeted apps are too complicated for me. But I now can track month to month where my money's going, and then I can start tracking wins. So if last month I spent this much and then this month I spend less, that's a win. Especially if I can start saying, well, here's where I put this money and here's what I did here. So start tracking that progress. Finally, one of the last problem that I want to talk about today is this sacrificing freedom for appearances. You know, who doesn't want to look good? But you can look good in a way that makes sense for you. You know, I love a nice suit, but I know a place that I can get a suit made for $100. And that is important because at the end of the day, many people spend years trapped by payments, debt, and obligations because they wanted to project a certain image. And it's a trap. It's a trap because it will keep you stuck forever. So what can we do? Well, first of all, choose freedom first. Prioritize, I would say number one is step one is prioritize flexibility over appearances. Like at the end of the month, if you are tapped out and you have no money to spend on the things that you want to spend on and the things that you need to spend on, that's a bad thing. So instead, create the system so you have flexibility and you're not getting completely cash-strapped at the end of each month. Number two, unvoid unnecessary debt. Now, I love credit cards. I think having credit cards and points is great. And if you're running a business and you have like spin that you have to spend every month, man, run that through a card that gives you points. But that doesn't mean that you should chase additional spending. Just because you have a card that gives you points doesn't mean I'm gonna go out and spend as much as I can. Stick to your budget, know what you have, know what you need to be spending, and stick within those, those, those, those kind of those uh borders, those rails, those guidelines, and then don't go out of that, you know. So don't go and just get yourself deep into debt to afford something that you don't really need. And finally, step three, make decisions based on long-term freedom, you know, not short-term impressions. Because people that are doing things in the short term are gonna be really sad when they find out that they're actually spinning themselves into a really bad place. So make decisions that are long term. Don't think about the next three days, think about the next six years, the next 10 years. When you can get that longer-term approach to things, you're gonna find that it is a really good way to not try to keep up with the Joneses because at the end of the day, lifestyle creep sucks. Spending more money than you have is not fun. And if you want to get true wealth, there is one simple truth. You need to spend less than you make. That's it. That's the key to making a lot of money. If you can do that and find ways to spend less or to make more, you're gonna be going in the right direction. But you gotta change things up here first. The psychology of money is the core of what we're talking about right now, and that is what this channel is all about. Hope you guys have a beautiful day. And remember this the goal isn't to look rich, the goal is to have choices. That's it. Because real wealth isn't about what people see, it's about the freedom they don't. All right. I have got to go find my daughter, and we're gonna have some ice cream. And we budgeted for that. See you guys next time.