When I speak of the rich, I’m referring to the elite social class that most people aspire to reach. They occupy the top percentile of income-earners and among the richest in every country in the world.
When most people think of the elite, images of fancy cars, private jets, luxury goods and mansions often come to mind.
Having grown up poor, I can appreciate the value of money. When things are scarce, they seem to matter so much more. But what about the rich?
Wouldn’t their wealth trivialize most of the day-to-day struggles and problems that us ordinary folk face? How can we possibly learn anything useful except maybe to hope we can strike it big in life someday?
Since the 20th century, a remarkable but subtle shift has occurred.
While a lot of the mainstream narrative has focused on the ever widening income inequality, wealth gains in households have increased significantly.
Point being, the world has never been wealthier.
Thanks to outsourced production and China, material goods are increasingly accessible and affordable. Now the growing middle classes have expensive handbags and nice TV sets to show for it.
The rich have taken notice and have been spending their wealth in other ways to display their social position. Namely, in education, knowledge, cultural influence, retirement and health.
Having nice Bentleys and yachts doesn’t seem to mean much as investing in health and building human and cultural capital.
Rich spending is no longer just material in nature. According to the US Consumer Expenditure Survey, the top 1% of households spend 6% on education alone, compared with just over 1% of middle income spending.
Imagine at a time where our nation is having a conversation about loan forgiveness and how college tuition is at an all-time high, the rich are pouring more money to send their children to the best schools.
They prize the association of elite institutions and what they can offer in terms of professional opportunities, network and career prospects at the top companies in the world.
More so than education, the rich have found less overt and ostentatious ways to display their wealth.
Imagine reading books magazines like Bloomberg Businessweek or The Economist and packing organic fruit and pasture-raised eggs for their preschooler’s lunch.
It’s less the cost but more about the social mobility that can come from these behaviors. Think about the elite institutions of the world and how such material can be freely discussed and mulled about.
Consider the conversations one would have at the organic farmer’s market or grocer about healthy food options. What about engaging in small talk over the latest fitness developments with friends while on a VR exercise bike marathon?
Gaining access to these coveted social circles and networks can open doors to financial opportunities only accessible to a select group.
Better yet, the rich are also investing in their future quality of life and their next generation. They are exploring new frontiers to manage retirement and improve their health and wellbeing so they can enjoy their silver years and not be a burden to their children.
The rich look to give their children the best head start in life, oftentimes assisted with money to the best preparatory academies, clubs and elite private schools. They celebrate knowledge and academic milestones and seek to inculcate the importance of personal development at a young age.
Listen, I know what you must be thinking at this point. At first glance, it’s hard to replicate anything that I just mentioned. Without sizable capital, we remain closed off to many of these opportunities the rich can engineer for themselves.
But I’m not talking about replicating so much as learning from the rich’s attitudinal shift. I honestly think this mindset is one we all can and should seek to emulate.
We need to start paying attention to what we consume. Especially as the middle class continues to aspire to join the elite circles, they should be mindful of spending as a means to flaunt their newfound wealth and status.
The question we ought to be asking ourselves is: How do we invest in the things that matter that can improve our mental, cultural, spiritual and physical well being?
You don’t have to rush to the newsstands to buy the latest copy of the Wall Street Journal. But you can start reading about financial investing, asset protection and retirement planning.
You don’t have to order baskets of acai berries, bags of kale chips, strips of wagyu or freshly delivered protein-enhanced tofu to your doorstep every week. Eating less salt, cutting out sugar and investing in a juicer is a great way to start taking control of your health.
You don’t need to enroll into Harvard but it might be a good idea to start exploring trade schools or picking up a new skill.
It’s not just about being rich. The real lesson here is about knowing how to build wealth in the right areas.