Social media is a highlight reel where people show their best selves and hide their flaws. This trend has also created a stark difference between people's perceived finances and their reality. This topic generated plenty of traction in the HENRY Finance subreddit, where people shared stories of people who were faking their wealth.
"I do know people who present a lifestyle that is $40,000+ a month in base bills who have zero retirement, zero assets (everything is leased/rented), and tons of lawsuits and terrible credit," the original poster stated.
Others jumped in the comments to share how people they knew were faking wealth and provided some key lessons.
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The Support Network Plays A Big Role
Each person has a different support network, and the level of support someone receives makes it easier to fake a wealthy lifestyle. For instance, someone who lives with their parents could more easily travel to exotic destinations multiple times each year.
One Redditor mentioned a friend whose dad covers the rent, a medically retired veteran who gets full military retirement on top of his income, and someone who lives a luxurious lifestyle while being deep in student debt.
"I live in a very high-cost-of-living area, and a lot of high earners here also come from family money. They graduated without debt and could start spending and saving right off the bat," one Redditor stated.
It's perfectly fine to support your children financially if you can, but it's important to keep this perspective in mind when people present wealthy lifestyles on social media.
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People Bet On Their Income Staying The Same
The original poster mentioned that some people bet on their income staying the same or rising over time. This bet makes them feel more comfortable spending more money than they should and getting deeper into debt. The moment their income goes down, these same individuals may panic internally while desperately trying to preserve the lifestyle they have presented on social media for several years.
Many commenters embraced long-term investing and the idea of making short-term sacrifices for long-term gains. It's easy to afford expensive items if you don't save and are willing to get deep into credit card debt. However, doing those things will leave you financially vulnerable in your 60s and 70s.
Several Redditors mentioned that comparison is the thief of joy. Everyone is different, and if you don't get on their ride, you can focus on building long-term wealth.
See Also: Are you rich? Here’s what Americans think you need to be considered wealthy.
Minimalism Can Help You Escape Comparisons
One commenter mentioned that he was in the rat race of constantly buying more things and wasn't happy. His solution was to embrace minimalism, which is the complete opposite of people who try to present themselves as wealthy on social media. He now has more downtime from his demanding job and deleted every social media app except Reddit.
Comparison can prompt people to spend money on unnecessary things and get trapped in trying to create and maintain the perception of wealth. Most millionaires do not look like millionaires. They do not have luxury cars, designer clothing, and other expensive items. Many people become millionaires by making prudent financial decisions and saving money over a long period of time.
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