5 Signs That You're Fake Rich And How To Become Rich
You're fake rich if you flaunt your lifestyle, but you're secretly broke. Learn how to become wealthy!
Do you love following fashion trends, having the newest car, or having the coolest gadget?
You buy name-brand clothes and lease an expensive car, but you're broke.
You're fake rich.
Real wealth doesn't care about appearances or what other people think. The rich know how to make their money grow and work for them.
I was the epitome of the metrosexual in college. I wore Guess brand clothes. I overly cared about my appearance. I went to trendy cocktail lounges. I cared more about what people thought about me than my financial situation and building wealth.
These are five signs you’re fake rich and how to become rich.
1. You Buy Expensive Clothes And Have No Savings
You buy expensive name-brand clothes.
It's one thing to spend more to buy a quality product that lasts longer than a cheap one. It's another thing to buy designer clothes for attention.
You're wasting money.
Buying designer clothes drains your bank account. You look like a walking advertisement for the brand.
You want to impress people by wearing overpriced clothes.
You could save that money instead for your future.
🚨Problem: You Look Successful
You look like you're successful wearing designer clothes from brands found on Fifth Avenue in New York City.
The reality is that you can't cover a $500 car repair.
You're broke wearing fancy clothes.
Clothing depreciates once it leaves the store.
No one cares what brand you're wearing.
They don't want to see you naked in public.
✅Solution: Buy Affordable, Quality Clothes
Prioritize buying affordable, quality clothes that fit you well.
Buy the store brand at retail stores like Target and Costco.
Purchase clothes when they are on sale.
Shop at thrift stores like Goodwill.
Visit discount stores like T.J. Maxx.
You can still look sharp without the expensive price tag of designer clothes.
Save the money in a high-yielding savings account that you would have spent on buying name-brand clothes.
😎Why Does This Matter?
No one remembers the outfit that you wore last week.
External validation is pointless.
There's no point in impressing friends and people online.
They don't care.
Stop stressing yourself worrying about whether you're wearing the right brand.
Real wealth doesn’t care what people think.
Real wealth knows that clothes depreciate and are just fabric.
Real wealth saves the difference between the cost of a brand name and a store brand in a high-yielding savings account.
A high-yield savings account gives you the power of compound interest.
Compound interest grows your money over time.
2. You Lease A Fancy Car And Don’t Own A Business
You lease a fancy car in your driveway. It could be a Mercedes or a Cadillac.
You pay more than you can afford to show off the car when you drive it.
You lease it. You don't own it.
Renting a car gives you the illusion of wealth.
Leasing any car is one of the fastest ways to burn your cash.
Cars are depreciating assets. Cars depreciate once you drive them off the lot.
You're leasing a depreciating asset, which is even worse.
You get nothing in return for renting a cool-looking car.
🚨Problem: Monthly Car Payments
You're paying $500 or more a month to lease a car.
The car is not yours.
It's the dealerships.
You still pay car insurance, maintenance, gas, and state fees that drain your bank account.
If you lost your job tomorrow, you'd be stuck making payments you cannot afford.
✅Solution: Buy A Reliable Used Car
Buy a reliable used car from a car brand you can trust.
Consumer Reports released a recent report on the top car brands for 2025.
The most reliable car brands are:
Subaru
Lexus
Toyota
Honda
Acura
Mazda
Audi
BMW
Kia
Hyundai
Purchase a quality used car with cash.
Paying with cash gives you freedom.
You don't have a lease that traps you in debt.
Use the money you would spend on monthly car payments to start a business.
😎Why Does This Matter?
Cars are a depreciating asset.
Cars lose you money.
Cars cost money to maintain.
Stop caring about status symbols.
Buy a car that you can afford with cash.
A business is a financial asset.
You can grow a business as big as you want.
You can reinvest your business' profit to start another company, into real estate, or in the stock market.
Related - You Need To Know How Buying A Used Car With Cash Helps You Build Wealth
3. You Eat Out Every Day And Have No Emergency Fund
You check out the hottest restaurant that everyone is talking about online.
You drive through McDonald's for lunch every day.
You go to happy hours after work.
You visit your favorite bar to watch sports on the weekends.
Going out to eat every week quickly adds up.
You're wasting thousands of dollars a year going out to eat.
🚨Problem: Going Out To Eat Is Expensive
A $15 lunch every day is $5,475 a year.
Use that $5,475 a year lunch money to build your emergency fund.
You never know when you'll have an emergency.
An emergency fund gives you peace of mind.
Your car could break down. You could have a sudden health problem. Your boss could fire you.
✅Solution: Cook At Home And Build An Emergency Fund
Start to prep your meals.
Learn to make and follow recipes.
Cook recipes that your family has passed down for generations.
Cook at home rather than going out to eat.
Cooking at home makes it easier to follow a diet.
Only dine out for special occasions and celebrations.
Save the money in a money market or high-yielding savings account to build an emergency fund.
😎Why Does This Matter?
Restaurants make you poor.
Going out to eat and to happy hours signals to people that you're fake rich.
The more you cook, the more money you will save.
The more money you save to build an emergency fund, the less stress you'll have.
An emergency fund puts you on the path toward financial freedom.
Related - 5 Tested Money Saving Grocery Shopping Tips You’ll Love!
4. You Have A Big Mortgage And No Investments
You live in a house with more square footage than you need.
You overextend yourself with a mortgage.
You won't be able to afford the mortgage if rates increase.
You'll be kicked out onto the streets once the cost of necessities rises due to inflation.
America markets to you living in a McMansion with a nice yard and white picket fence as achieving the American Dream.
The problem is you're in debt.
You have no money left over after you pay off your monthly mortgage to invest in assets.
🚨Problem: You Have A Huge Mortgage And Maintenance Costs
You purchased the largest house that you could afford.
You maxed out the mortgage, too.
On top of your monthly mortgage, you have to pay for all of the costs of owning a home:
Utilities
Maintenance
Property Taxes
Home Insurance
Homeowners Association (HOA) Fees
All of your money goes to your mortgage and home maintenance.
You have no money invested in the stock market.
✅Solution: Buy A Smaller Home
You don't need a McMansion to be happy.
You only need a roof over your head.
Downsize to a home that you can comfortably afford without overextending yourself.
Buy a smaller home.
Invest the difference between the larger and smaller homes in the stock market.
Buy index funds or individual stocks.
Come up with your stock market investing strategy.
😎Why Does This Matter?
Don't live in a big empty house that you cannot afford.
Your home shouldn't take a major percentage of your money.
True wealth comes from owning income-producing assets.
Learn about the stock market.
Build wealth over your lifetime with the stock market.
5. You Finance The Latest Technology But Have No Retirement Plan
You need the latest technology with all the features.
You finance your phone, laptop, and tablet.
You pay a monthly plan for tech.
You don't own the tech.
Upgrading your tech every year is a bad financial habit that keeps you poor.
You spend thousands of dollars a year to look like a techy.
You have no money saved for retirement.
🚨Problem: Technology Depreciates
Technology depreciates.
A better version in a year immediately replaces the device you buy today.
New phones don't make you money.
You prioritize having the latest tech gadgets.
You don't invest in retirement accounts.
✅Solution: Keep Your Tech Until You Need A New One
Only buy the device with the memory, RAM, and camera capabilities you need.
If you use your phone to film videos or your laptop to edit videos for a business, write them off as a business expense.
If you only use a phone or tablet to make phone calls, send text messages and emails, and watch videos, get a basic phone.
Purchase used tech that meets your needs.
Only buy the monthly internet and phone plans that meet your basic requirements.
Keep your tech until you need to buy another one.
Invest the money you would have used for the latest and greatest technology to build up your retirement accounts.
😎Why Does This Matter?
An iPhone 16 Pro Max with one terabyte of memory costs you $66.62 a month to finance. It will take you two years to pay off your phone, which retails for $1,599.00.
You could invest that $1,599.00 in a 401(k), Roth IRA, or health savings account (HSA).
Investing and preparing for retirement is more important than having the newest technology.
Retirement accounts provide you with tax advantages while investing in the stock market.
🏁Summary
Your fake rich habits trap you in a destructive financial cycle of spending, debt, and stress.
Fake rich focuses on external validation from other people who don't care.
Build real wealth by living below your means, investing consistently, and wanting to impress others.
Disclaimer: This content is for educational, entertainment, and informational purposes only. This is not financial, investment, or any advice. I write online about topics I find interesting. I make mistakes just like everyone else. Always consult a professional before making health, life, financial, investment, tax, or legal decisions.