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Evaluating Someone’s Net Worth

There is definitely a distorted view of wealth in this world. Over the weekend a bunch of us were talking about a mutual friend who owns a 10,000 square foot home and drives a Mercedes. After talking about all of the things that our friend owned a whole bunch of folks commented on his wealth. One friend said, “He must have a ton of money, his house is huge.” In response my husband piped up and said, “If he has so much money than why does he work 60 hours a week.”

Now don’t get me wrong. My husband and I know a couple of people that work a lot despite having a ton of money, but those folks work for themselves or as presidents of small companies. The wealthy individuals we know don’t work 60 hours a week, at a job they don’t particularly enjoy, for someone else.

Later that night my husband asked what I thought of the conversation. I told him I thought it was funny how our friends assumed someone had a lot of money just because they own a big home and a fancy car. Even after all of the financial turmoil in the markets and all of the talk of people losing homes they can’t afford, our friends still think you can judge a person’s wealth by the cars they drive and the homes they occupy.

Anonymous

Thursday 7th of July 2011

many truly wealthy people live reasonably--that's how they got wealthy

Fabulously Broke

Wednesday 29th of October 2008

Totally all about appearances...

I`d rather be known as being normal than `wealthy` because then people expect you to act a certain way or pay for more things, etc...

Smarty

Saturday 25th of October 2008

I think it's very easy for people make assumptions based on how much someone spends. It's easy to look at what people have and come to a conclusion about their financial status.

There are many people who buy expensive items but are living from pay check to pay check.

And then there are those people who are wealthy, don't need to worry about retirement, but don't spend money on expensive, depreciating items.

It's interesting that one can draw an inverse relationship between money spent and financial wealth.

notesfromthefrugaltrenches.com

Saturday 25th of October 2008

Great post! I've noticed when people put their net worth on blogs, they often include things I'd never personally include like furniture, they bump up another $20K because they have a degree etc. In a recession these things may give you nothing. People often assume people are "rich" due to status symbols. The richest people I know live exceptionally simply in small homes, with small cars and certainly don't work 60 hrs a week!

amothersheartinwords

Friday 24th of October 2008

Someone once told me, "you can never tell how much someone makes, or has, but you can usually tell how much they spend".

Truer words are rarely spoken.

nice blog.