Don't Try to Keep Up With the Jones' If You Want to Build Wealth

We all played games as kids. I was especially fond of kick ball, dodge ball and Red Light/Green Light. Our younger Nintendo bound readers probably haven't a clue what these games are. As we get older and become contributing members of society with responsibilities for our families (i.e. become bill payers), there are simply some games that we should just let go, especially when it comes to competing with money. As much as I've studied wealth, it still amazes me the amount of scientific research that exist which illustrates people would prefer to make $50k a year when everyone else makes $25k over making $100k a year when everyone else makes $200k.

First up, the Neighbors

One spring, I decided to change my mulch color from the brown they give you with new construction to a nice red color to enhance my bricks.   My neighbor who had already completed his noticed that I changed colors just after they finished.  Apparently he didn't think to put down the red mulch until after he saw me. It didn't help that I was a bachelor while they had at least four incomes, a problem that he never quite came to terms with. The mulch served as the icing on the cake and at that point his competitive nature kicked in. Within a very short period of time he went on a Jones's spree to one up me by purchasing a bigger trailer than mine to haul the mulch, hanging out in my back yard to carbon copy my deck and finally trading in his vehicle to get a newer model of the one I had. When I looked at him in disbelief he said, "I gotta keep up with the neighbors".

The Ultimate Form of Flattery...or Not

One morning as I stepped on the train to Washington, I sat right next to a guy who was immediately seated by the door. What was interesting was he was about my height and weight but not only that he was wearing exactly the same suit and overcoat, an extraordinarily similar hat, gloves, shoes, socks and watch. It was almost a mirror image.   A few ladies sitting nearby were just dumbfounded. He and I thought it was totally cool and had a great conversation. I didn't grow up with sisters but have had several great relationships with women I deem my sisters today. It seems very apparent that not one of them would have had the same cordial conversation. In fact, it seems likely that a few of them may have kept walking to the other end of the train or just would not have gotten on at all and I have no remote idea why. What I do know is that this competition whether friendly or not doesn't stop with everyday ordinary people.

The Real Housewives of Beverly Hills

I was leaving a swanky Beverly Hills hotel one morning when it was brought to my attention that they were setting up for a birthday party. "Oh that's neat", I thought as I was about to enter the elevator observing someone is about to have a fabulously over-the-top birthday. Upon closer look, I realized it was a child's party. Curiosity dug at me and I went just close enough to realize the party was for a one year old. At that point, I knew the party had nothing to do with the child. In fact, a one year old doesn't know its their birthday anymore than they know its Tuesday. That party, and yes I'm about to profile, was for the mother. There is no justification for spending thousands of dollars on a Beverly Hills party for a baby. I can't say for certain that dad made the money but I can say with a high degree of confidence that men are not likely to do this as I've already shown we have other problems.

What ever must we do for an encore at 2?

Not to be outdone by Tinsel town, I watched some wealthy Floridians do the same thing at one of the most expensive hotels in South Florida. The birthday party was complete with an inflatable gym overlooking the beautiful blue ocean waters on manicured lawns with hired hotel staff to applaud every kid as they raced down the colorful slide. This time I had more time to observe and can say with absolute certainty that mom was the gleeful center of all her look-a-like-wannabe-me friends. There's nothing like throwing a party the kids will never remember and your wallet will never forget.

That's not Rich, This is Rich

I've seen nothing that compares to what can obliterate a fortune like the world of yachting and it is about as competitive as any mom with money to blow on a kid's party. Whether you're buying a yacht for $25MM with a $5MM annual upkeep or renting one for $400K a week plus gas and food, it can sink you faster than a hole in the boat. I found myself on the InterCoastal Waterway of Millionaire's row. Someone pointed out former Chicago Bull's star Scottie Pippen's house and subsequent yacht. Way to go Scotty, I thought until I was shown what seemed to be a Navy ship complete with executive helicopter in a candy-coated, leather protective shell. This one far exceeds Pippen's and belongs to Angelina Jolie and Brad Pitt. Their $137MM boat was quickly upsized by several that could use Scottie's for a Jet Ski and Jolie's for the shadow boat. Shadow boats are the smaller yachts that trail the mega yachts carrying the Ferraris and unwelcomed in-laws. Regardless of your portfolio today, spend like there's no tomorrow and there won't be.