I have been watching "The Millionaire Inside" series on MSNBC. The last one I saw featured David Bach whose "Finish Rich" books the show is based on as well as:
* Robert Kiyosaki, the author of Rich Dad/Poor Dad
* Larry Winget, the author"Your Broke Because You Want to Be"
* Jennifer Openshaw of "The Millionaire Zone"
"The Millionaire Inside" is an interesting series as the experts are self made millionaires and offer more than one answer to the questions posed.
The last episode I saw was "The Millionaire Inside : Debt Free". Something David Bach said resonated with me. He suggested that Americans fall victim to a "False Joneses" epidemic. It starts by going to our next door neighbor's home and you see that they have a new plasma screen TV. You think to yourself that because they are your neighbor, they must have the same mortgage payment you have. You have always thought they earn about the same as you. You come to the conclusion that if they can afford it, so can you.
He went on to say that what you don't think about is that it's quite possible your neighbor is neck deep in debt and about to lose their home. Or perhaps, they have money socked away that you are not aware of. Whether it's a TV, a car or extravagant vacations, comparing yourself to another's financial situation is hazardous because, more than likely, you don't know their whole story.
Occasionally, I fall into this way of thinking and have to consciously pull myself out. For a few years I drove a 1990 Cadillac with a minor dent in the side. I loved that car! I especially loved it because it was given to us by Paul's aunt and uncle and it saved us a car payment. But, every once in awhile I would watch one of my friends buy a new car and I would think that I should probably upgrade too or that I deserved to drive a nicer, newer car. Luckily, I would quickly remind myself that I really liked the Cadillac and having that extra $300-$500 a month in my pocket instead of handing it over to a car company was priceless!
I drove that Cadillac until its death last year. Happily, I now drive a gently used Nissan Maxima that I love even more than the Cadillac. It gets great gas mileage, doesn't have a dent and most importantly, doesn't include a car payment. Because I was able to save extra money by driving the Cadillac for so long, I was able to pay cash for the Nissan! I challenge the Joneses to keep up with the Tosetti's!
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