The People Who Build Wealth Don’t Do This, According to George Kamel and Rachel Cruze
Written by
Catherine Collins
Edited by
Zuri Anderson
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George Kamel and Rachel Cruze are both financial experts and Ramsey Solutions personalities who co-host the Smart Money Happy Hour podcast. Recently, they shared an important rule when building wealth, and that is not to care what other people think.
Specifically, be wary of spending money on trends and high-ticket items, especially at the risk of your future financial security.
In this podcast episode, titled “Things That Scream ‘I’m Pretending to Be Upper Class,’” the co-hosts mentioned a list of habits people do to act “better” than others, including one-upping, name-dropping and giving expert advice when they’re not qualified.
Then, they discussed habits people adopt to look upper class, like wearing designer logos, leasing luxury cars and flaunting wealth on social media. However, real wealth, they explained, comes from long-term planning. Not only that, but most people who are truly wealthy aren’t obvious about it.
Read on for a breakdown on Kamel and Cruze’s insights on what wealthy people don’t do.
What Is Considered Upper Class?
According to Pew Research, only 19% of Americans are considered upper-income, while 51% are considered middle-income and 30% are lower-income. Many people want to appear that they have more income than they do, when the reality is that less than 20% of the population are high earners.
Trying to look wealthy when you’re not can have serious drawbacks, namely that it can take your focus away from saving, budgeting and investing for your long-term financial health. Spending more than you earn can also make it difficult to create extra cash flow to use to pay down debt and invest.
Wealthy People Don’t Flaunt It
Cruze and Kamel explained people who are truly wealthy aren’t usually showy. In fact, most wealthy individuals prefer “quiet luxury,” something the Berkeley Technology Law Journal describes as wearing “products marketed without any logos.”
These products tend to be high quality and expensive, but not obvious. This is a sharp contrast to a culture that showcases vacations and purchases on social media. Influencers who drive luxury vehicles and live in large homes can make viewers feel inadequate.
To compensate, many people try to emulate what they see online by buying products to look like they’re wealthy. This can lead to unintentional spending and debt.
According to a recent WalletHub survey, three out of four people have made at least one unnecessary purchase because of social media. The survey also showed that 36% of people feel frustrated about their own finances after looking at social media.
It’s easy to compare and feel less than when people only see someone else’s highlights. If you’re trying to create better financial habits, it’s a good idea to unfollow accounts that make you feel less than or accounts that make you want to spend.
Final Thoughts
Ultimately, what Kamel and Cruze try to convey in their episode is that getting caught up in materialism and looking wealthy can prevent you from achieving true wealth in the future. They advise their listeners not to spend so much on fads, designer goods, and experiences they might not need.
So, rather than following the crowd, focus on improving your net worth, growing your savings and learning how to invest so you can eventually reach financial independence.
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