Why LOOKING Poor Is Important

Summary

The speaker advocates for the financial wisdom of appearing less wealthy, suggesting it reduces stress and leads to greater contentment. They argue that keeping up with the latest trends and material possessions can hinder wealth accumulation. Instead, they promote minimalism and investing in experiences or skills that yield long-term benefits. The speaker also emphasizes the importance of financial planning and the joy found in simplicity, suggesting that prioritizing experiences over material goods can lead to a more fulfilling life.

Takeaways

• 💡 The speaker suggests that aiming to look less wealthy can be a beneficial strategy for financial success, as it reduces the pressure to constantly keep up with materialistic trends.
• 📱 The cost of keeping up with the latest gadgets and trends can be a significant financial burden, and the speaker advises against falling into the cycle of continuous spending on new items.
• 💸 The speaker points out that popular items or trends are often not financially wise, and that contentment with what one already has can lead to greater financial stability.
• 🏡 The speaker emphasizes the importance of minimalism and being content with what one has, which can lead to a simpler and more fulfilling life.
• 🚗 The speaker argues that the desire to impress others often leads to unnecessary expenses, and that true success is financial freedom, not material possessions.
• 💼 The speaker shares a personal journey of shifting from wanting to show success through material items to focusing on achieving financial freedom.
• 💰 The speaker discusses the high return on investment (ROI) of self-improvement and learning new skills, which can lead to better job opportunities and financial growth.
• 🌿 The speaker finds joy in simplicity and believes that a clutter-free life correlates with happiness, suggesting that less is more when it comes to possessions.
• 🏠 The speaker suggests that the pursuit of a larger house or more possessions often leads to more work and less enjoyment of life, advocating for a smaller, more manageable lifestyle.
• 👕 The speaker notes that many billionaires and multi-millionaires do not feel the need to appear wealthy, as they already know their worth and do not need to prove it to others.

Q & A

Why does the speaker suggest looking poor can be a good strategy for accumulating wealth?

The speaker suggests that looking poor can be a good strategy for accumulating wealth because it reduces the pressure to keep up with material possessions and the associated recurring costs, which can hinder wealth accumulation.

What is the mindset that the speaker warns against when it comes to buying new items?

The speaker warns against the mindset of constantly wanting and buying new items, such as the latest phone or car, which can lead to a cycle of spending and hinder wealth building.

How does the speaker feel about expensive water bottles that are popular?

The speaker is baffled by the popularity and high cost of certain water bottles, noting that they are essentially the same as cheaper alternatives and represent a trend that doesn't make financial sense.

What does the speaker suggest as a reason for not trying to keep up with popular trends?

The speaker suggests that popular trends are often financially unwise and that being content with what one has can lead to a more financially stable and happier life.

How does the speaker define success in terms of wealth and material possessions?

The speaker defines success not by material possessions or impressing others, but by achieving financial freedom, which allows for personal fulfillment and the ability to enjoy life without financial stress.

What is the significance of the statistic mentioned about Americans living paycheck to paycheck?

The statistic that 78% of Americans are living paycheck to paycheck is significant because it highlights the financial instability and lack of savings that can result from trying to keep up with materialistic trends.

Why does the speaker advocate for minimalism and contentment?

The speaker advocates for minimalism and contentment because they believe it leads to a more meaningful and less stressful life, allowing one to appreciate what they have and focus on what truly matters.

What is the speaker's perspective on investing in oneself?

The speaker views investing in oneself, such as learning new skills or taking classes, as one of the best returns on investment, as it can lead to better job opportunities and personal growth.

How does the speaker feel about the idea of impressing others with material possessions?

The speaker believes that trying to impress others with material possessions is unnecessary and can lead to financial strain; instead, they value financial freedom and living a life that aligns with personal values.

What is the speaker's advice on how to approach buying a house or car?

The speaker advises against buying a house or car solely to impress others or keep up with societal expectations. Instead, they recommend considering the long-term financial implications and choosing what brings true happiness and aligns with one's financial goals.

How does the speaker relate the concept of looking poor to the mindset of billionaires?

The speaker relates looking poor to the mindset of billionaires by noting that many successful individuals don't feel the need to flaunt their wealth, as they are secure in their success and don't need external validation.

Outlines

00:00

💸 The Paradox of Wealth: Embracing a Homeless Look

The speaker advocates for a lifestyle that appears less affluent as a strategy for accumulating wealth. They argue that the pursuit of looking rich often leads to increased stress and decreased financial stability due to the pressure to keep up with the latest trends and the recurring costs associated with maintaining a wealthy appearance. The speaker criticizes the mindset of constantly needing the newest items, such as expensive water bottles, and suggests that contentment with what one already has is a key to building wealth. They also touch on the idea that popular trends often signify a lack of value, and instead promote minimalism and gratitude for what one already possesses.

05:01

🏡 The Joy of Simplicity and the Pursuit of Financial Freedom

In this paragraph, the speaker discusses the correlation between a simplified life and happiness. They emphasize the importance of reducing material possessions to minimize stress and make space for what truly matters. The speaker shares personal anecdotes about their own journey with minimalism, including not buying new furniture until the age of 28 and only upgrading possessions when absolutely necessary. They also highlight the freedom that comes from not needing to impress others with material wealth, and instead focusing on financial freedom and personal satisfaction. The speaker concludes by suggesting that looking poor can lead to significant financial savings and a more fulfilling life.

Keywords

💡Wealth

Wealth in the context of the video refers to the accumulation of assets over time, which can be achieved by avoiding unnecessary expenditures and focusing on long-term financial goals. The video suggests that looking rich is not synonymous with being wealthy, and that one can be wealthy without showing it off. The speaker emphasizes that true wealth is about financial freedom and not about impressing others with material possessions.

💡Minimalism

Minimalism is a lifestyle choice that involves reducing one's possessions and consumption to a minimum. In the video, the speaker discusses how minimalism led to contentment and a focus on the essentials, which in turn contributed to building wealth. By decluttering and getting rid of unnecessary items, the speaker was able to appreciate what they had and avoid the trap of constant consumption.

💡Contentment

Contentment is the state of being happy and satisfied with what one has. The video argues that practicing contentment is crucial for financial success because it helps individuals resist the urge to constantly buy new things and instead appreciate the value of what they already possess. The speaker uses the example of being satisfied with an older car to illustrate how contentment can lead to financial freedom.

💡Financial Freedom

Financial freedom is the state of having enough savings and investments to cover one's living expenses without the need for a regular job. The video suggests that this is a more accurate measure of success than owning expensive items or looking rich. The speaker shares their personal journey towards financial freedom, emphasizing the importance of long-term investment over short-term consumption.

💡Simplicity

Simplicity in the video is associated with a lifestyle that is uncluttered and straightforward, which can lead to increased happiness. The speaker finds joy in simplifying their life, as it reduces stress and allows for a greater focus on what truly matters. Simplicity is contrasted with the constant pursuit of new and expensive items, which the speaker argues does not lead to lasting happiness.

💡Investing in Self

Investing in self refers to the act of spending time and resources to improve one's skills, knowledge, and personal growth. The video encourages viewers to see the value in self-investment, such as taking classes or learning new skills, as it can lead to higher returns in terms of career advancement and personal fulfillment. The speaker mentions taking classes on platforms like Skillshare as an example of how one can invest in themselves.

💡Ego

Ego, in the context of the video, refers to the desire to impress others and maintain a certain image, often at the expense of one's financial well-being. The speaker argues that many people try to look wealthy to satisfy their ego, but this can lead to unnecessary spending and a lack of financial freedom. The video suggests that a healthy ego check involves focusing on one's own goals and values rather than external validation.

💡Frugality

Frugality is the practice of being economical with one's resources and avoiding wasteful spending. The video discusses frugality as a means to achieve financial goals, such as paying off debt and building an emergency fund. The speaker distinguishes between frugality and self-investment, clarifying that investing in oneself is not wasteful but rather a smart financial decision.

💡Gratitude

Gratitude is the feeling of appreciation for what one has. The video suggests that being grateful for one's current possessions can lead to contentment and reduce the desire to constantly acquire new things. The speaker encourages viewers to appreciate what they have, such as a roof over their head and shoes on their feet, as a way to cultivate gratitude and happiness.

💡Life-Changing Money

Life-changing money refers to the significant financial savings that can be achieved by making wise spending decisions, such as choosing not to buy a new car every year or opting for a smaller house. The video argues that these savings can have a profound impact on one's life, potentially leading to financial freedom and the ability to enjoy life more fully. The speaker contrasts life-changing money with the short-term satisfaction of keeping up with trends and impressing others.

💡Budgeting

Budgeting is the process of planning and controlling one's income and expenses. In the video, the speaker mentions budgeting as a key financial tool that helps individuals stay on track with their financial goals and avoid unnecessary spending. By having a financial plan, one can make informed decisions about where to allocate resources, leading to greater financial stability and freedom.

Highlights

Appearing less wealthy can be a good strategy for accumulating wealth.

Avoiding the pressure to keep up with material trends can reduce stress and increase financial stability.

The recurring costs of keeping up with trends can be a significant financial burden.

Expensive, trendy items like water bottles often have no real value over cheaper alternatives.

Popularity of a product or trend can be an indicator to avoid it for financial reasons.

Practicing contentment with what you have can lead to wealth accumulation.

Minimalism can help in recognizing and decluttering unnecessary items.

Being grateful for what you have can lead to happiness and financial freedom.

Looking less wealthy can reduce the need to impress others and the stress associated with it.

Financial freedom is a more meaningful measure of success than material possessions.

Investing in experiences or saving for financial freedom can be more valuable than material goods.

Investing in yourself, such as learning new skills, can have a high return on investment.

Skillshare offers a variety of classes for personal and professional development.

Simplicity in life can lead to increased happiness and reduced stress.

Owning fewer possessions can lead to more freedom and enjoyment in life.

Billionaires often don't feel the need to project wealth, focusing instead on their financial success.

Having a financial plan and sticking to it can provide peace of mind and direction.

Ego can drive people to make poor financial decisions to maintain a certain appearance.

Living a life by design, rather than by default, can lead to financial and personal happiness.

Transcripts

my goal is to look homeless and have a

lot of money and it turns out that's

actually a good strategy to have a lot

of money I mean you don't have to look

homeless but you shouldn't try to look

rich because most likely if you do try

to look rich you'll have way more stress

way less money I think just be generally

more unhappy first reason why it's

important to look poor is because it's

easier to catch up if you don't keep up

you always have the newest phone the

nicest clothes the brand new car every

year just cuz you like the smell of new

leather and you deserve it it's going to

be like wicked hard to actually become

wealthy and it's not even the cost of

those things that are like cripplingly

expensive it's the reoccurring costs of

those things it's because you get in

this mindset of when the new thing comes

out that you want and you deserve and

you go treat yourself it's a cycle of

spending decent chunks of money on the

newest thing or even small chunks of

money like a recent example still

baffles me is these like expensive water

bottles that come out are they're like

50 60 bucks they're like the rage

everybody goes get some they're they're

the same water bottle as the $10 one and

then a couple years later it's a

different one and people fall for the

exact same thing over over and over

again doesn't make a lot of sense in

fact if something's popular it's

generally a a sign that I don't want to

get that thing because everything

popular is wrong like according to a

survey 78% of Americans are living

paycheck to paycheck whatever they are

doing I do not want to do almost

everything popular is wrong by the way

if you've seen a couple of my videos at

this point this is your sign that you

should have subscribed because most of

you are not subscribed so try it it's

fun it's free practice contentment this

was one of the biggest factors that

allowed me to actually build up a little

bit of wealth was this idea of just

being okay with the things that I had

it's also what led me into minimalism I

realized I was falling into this trap of

just constantly wanting to buy stuff

just so I could feel good for a few

minutes get that little dopamine high or

when I got into minimalism I ended up

decluttering it and getting rid of it

donating it selling it if you look

around your house you probably have

everything you need to be happy to

thrive and a lot of times we aren't

grateful and content for the things that

we do have so a great practice is just

to really appreciate everything that you

do have you have house over your head

you have shoes on your

feet slippers I'm so I just realized how

unflexible I am as long as you're not

starving and you have kind of the

Baseline that even the poorest in

America have you're richer than like

most of people throughout all of history

and being content with that will save

you hundreds of thousands of dollars

over your life or at least tens of

thousands you don't need a lot you don't

need more stuff to be happier another

reason that it's important to try to

look for is because then you don't have

to try to impress others I think a lot

of us want to look rich to feel

important to feel like we made it to

kind of just ify our existence in the

world is like look I'm not a failure I

have this brand new car would a failure

have that brand new car no see I did it

maybe that's subconscious maybe it's not

I know for me it took me years to be

okay with driving a uh a crappy older

Honda CRV for years and years while I

was starting my wealth building journey

I wanted to look a certain way so that

people would be impressed even though

nobody cares but instead I was able to

shift my mindset from wanting to have

the stuff to show that I was successful

to wanting to have Financial Freedom and

that be the gauge of my own like

mentally whether I've made it or not and

then whatever anybody else cares I don't

think too much cuz I know I have

Financial Freedom I know I'll never have

to miss a soccer game I won't have to go

to a job that I don't like ever again in

my life I won't have to stress about

bills and that for me is Success even if

everybody else doesn't know it like I've

got friends who maybe are 30 years old

and you get a $5,000 bonus if you're

living to impress others then you put

that towards a new car you buy a nice

vacation and Instagram the whole thing

but that same 5 grand if you invested it

into the S&P 500 made an average of 10 %

until you reach retirement Agee would

have been

$140,000 so when you shift things that

way that the price of that vacation or

that slightly newer car or that just

going out and treat yourself is

life-changing money was that really the

best use I think that's something a lot

of people get wrong when they talk about

frugal living and this idea of looking

poor is that you're not supposed to

invest into yourself when I really think

even despite that whole stock market

analogy that investing in yourself is by

far the best Roi you can ever make if

you learn one skill that can help you

get a better paying job like that's

crazy Roi like recently I've been really

diving into productivity and just trying

to find different tools and little tips

to make things uh a little bit better

I've been taking the class by Thomas

Frank and just like actually you know

processing of how to set my calendar and

all this different stuff and it's

actually made a difference and I've been

taking a bunch of other classes like

that for years actually with the partner

of this video skillshare in fact I even

made a a class over there on minimalism

if you don't know where skillshare is it

is the largest Learning Community for

creatives it's got so many different

topics and categories you can go down

from graphic design marketing

photography of course for me

productivity even finance and other

topics so if you're a creative looking

to up your skill in like any way

skillshare has a lot of like really

in-depth classes that are kind of like

uh due as you go so it's not just like

watching something and then hopefully

you do it you can like submit stuff and

all of these classes are really really

well made the first 500 people who use

my link down below can get a free one

Monon trial of skillshare so you can

like dive into a topic see if the

platform's for you I think you're really

going to love it so check it out another

reason to look for is because you can

find joy and simplicity I've found that

the simpler I make my life it almost

exactly correlates to happiness the more

I have going on the more stuff that

happens the less happier I am cuz I'm

just like stressed all the time you can

probably relate but the more stuff that

I get out of my house generally the more

I enjoy my house cluttered room is like

a stressful room having so many clothes

that I can't find the ones that I

actually enjoy is not great I just want

to have a few things things that serve

their purpose really well really not

much else to leave space for the things

that are actually important to me like

I'm totally okay with and almost proud

of the fact that you know I never bought

new furniture until I was 28 years old

was the first time I've ever bought a

new piece of furniture everything else

has been used or free or there's a few

select things that I will pay money for

when I know that the cost per use is

going to be really low because let's say

if I get a new shirt that I'm going to

wear every single day for years but I

only have X amount that's going to be

much cheaper than just constantly

cycling through new stuff to try to be

better the same thing with phones where

I never upgrade until the phone is

literally dead as opposed to other

people I know who upgrade every single

year and they never have money they're

part of that 78% the goal of your stuff

isn't to impress anybody it it's to do

the job that it's supposed to do for

some reason a lot of people don't see

their stuff that way it's actually

cheaper which obviously it's cheaper to

look for but I don't think people

realize some of the big decisions that

will cost them hundreds of thousands of

dollars that are huge swings in their

life that can be decided on if you're

living for other people or for your

yourself like most people want to have a

bigger house and a bigger apartment and

no matter what size they get they want

the bigger one they want the pool they

want the picky fence they want something

above whatever they have but if you know

that the more stuff you have the more

you're going to have to work in order to

pay for that stuff so the less you'll be

able to enjoy it the more taxes you're

going to have to pay on it the more

upkeep there's going to be all of these

things will determine that maybe instead

of getting a bigger house you actually

would enjoy a smaller house more because

you'll have more freedom in your life

there'll be less to clean you'll have

less stuff inside of it and you might

actually be able to live and enjoy your

life more by looking poor and choosing

to have uh you know a house that's

multiple hundreds of thousands of

dollars cheaper and maybe you can work

one less month a year because of that

decision or you can get to Financial

Freedom Way sooner when you look at the

difference especially spread out over

time of buying new car of a year buying

a a bigger house it's literally

lifechanging money and you have to

decide will that life-changing money

actually change your life or is it just

something that you feel like you should

do or you want to do to make yourself

feel you're worth it now another reason

that you should try try to look poor is

because of billionaires when you look at

billionaires and multi-millionaires they

don't have to try to look wealthy there

are a few of them that do cuz they have

ego problems but a lot of them just wear

cheap clothes they have an older car

they have an older house because they

don't need to impress anybody because

they know what is important to them they

know that they have made it so they

don't need to prove it to anybody else

and I think that's a great mindset to

strive for that you know that you're on

your journey to paying off debt you know

that you're building up an emergency

fund right now you know that you are

investing for your future you don't need

to prove to anybody else you're

successful right now that you've made it

that you're doing whatever you know what

is important to you that is a great

mindset so when you look at the ultra

successful they don't have to prove it

they know it so that's why it's

important to be budgeting to have a

financial plan I actually just started

really diving into setting up my own

financial plan recently with an app

called wisi not a sponsor is an

affiliate link but like this has given

me great perspective on I know that I'm

on the right path so I don't need to

prove anything to anybody cuz I know

that I am nearing you know Financial

Freedom and that to me is what is

important the ego check turns out that

most people who try to look wealthy tend

to have some ego issues when you're okay

with looking poor then you also have to

be okay with with yourself right you're

not trying to hide behind anything

you're just out there you're open you're

raw and that could be rough to deal with

but it can also make you happier when I

used to do commercial office cleaning

there was this guy that worked with me

that worked every night of the week five

nights a week about 3 hours a night in

order to pay for his new truck he had a

day job and then he had this night job

and this night job paid for his like

$60,000 truck he literally chose to look

flashy on the nights and weekends and

have this truck that he did not need and

he was willing to trade five nights a

week of his life for that truck he's

literally trading his life away for a

stupid truck that's what most of us do

if you lowered your expenses a lot and

you didn't care what anybody else

thought of you you're okay with looking

poor and actively trying to do it you

could probably work one day less a week

you could probably take one more week

off a year you could literally trade

this crap that we have all around us for

your life who wouldn't want to make that

trade and it just comes down to not

having an ego this doesn't mean that you

have to like actively look poor and be

grungy and dirty it's just really

finding your priorities and this balance

of thing that's going to work for you

and really just living a life by Design

and not by default not by what the

advertisers want you to do not by what

you think will help you fit in not by

what the trends are but for what is

important to you in your life will end

up saving you tons of money buying back

your time making you happier you know

something that actually makes me happier

is when people watch this video right

here which YouTube knows that you're

going to like so if you think you should

click it then you know I can I got to

really like plan out these outros