I have neighbors who are very much keep up with the Jones' mindset. They bragged about their 7% CD but if real inflation is 8% their purchasing power is contracting. Buy less with more dollars.
All I see when my buddy pulls up in his nice new truck is that is investment accounts will suffer. I tell him, "Nice truck," and it is nice, and he smiles, but I wonder why he still has student loans and vehicle payments and goes on four vacations a year. I know what he makes. I know the size of his family. I know what that costs. He is not investing.
Concur 100%. He has fallen prey to consumerism, exposed to repossession and likely foreclosure too. Had a coworker whose tenant stiffed him on rent so he (tenant) could take a vacation. Tenant belongs to the
own' nut'n and be happy crowd. Coworker sued tenant get his rental income (and won).
Many espouse chasing capital and fuel it with FOMO. There's a time for everything and it depends on one's risk tolerance. If one is young and can rebuild wealth, that person can take more risks. If one is old then generally the risk tolerance is less as there is less time to rebuild wealth.
BTW, when Thurston Howell III was stranded on Gilligan's Island, being a millionaire meant something. Modernly (Jan. 2025) the average homeowner in San Francisco or Washington, DC and its immediate surrounding are millionaires per se and they're the new middle class. The trick is to stay that way and to have liquidity to take advantage of the opportunities that will arise.
Another good read is Anna Eisenmenger's
Blockade: Diary of an Austrian Housewife.
ETA: Setting aside money for investing is exactly what the book,
The Richest Man in Babylon, recommends. It's an ancient work that is as relevant today as when it was first pressed onto clay tablets. Best of all, it's free on U-toob. Everyone should either read a hardcopy or listen to the free U-toob video.