What do braces, falcons, and Cuban cigars have in common? Depending on which part of the world you live in, all three of these items are considered to be status symbols!
Status symbols are primarily objects and goods that people buy as a sign of their social status, economic standing, or personal wealth. Individuals purchase these items to show their friends, coworkers, and complete strangers that they’re doing well financially!
In reality, many people whose primary focus is on buying these sorts of material possessions are not as rich or wealthy as they would leave you to believe. Most often, they’re just trying to portray the image of having an extravagant lifestyle by purchasing things they don’t need at prices they can’t afford. As a result, their spending habits lead them deep into debt, handcuffing them to a job and robbing their futures for years to come!
The truth is acquiring status symbols won’t help you create wealth or achieve financial freedom. In fact, it does quite the opposite. Buying them increases your burn rate, decreases your savings, and delays the achievement of your financial goals!
Below are 8 status symbols that many people confuse for signs of prosperity, but actually can be detrimental to your success!
Throughout history, jewelry has been a status symbol of royalty. Kings, queens, and pharaohs wore it as a sign of both their power and their wealth.
Today, some people are obsessed with jewelry for similar reasons. They may spend thousands of dollars or go into debt in their effort to impress others and appear well off!
Many people justify buying gold and silver jewelry because they think it’s a smart investment. However, it’s usually not since these pieces are mostly impure. To extract the pure metal and make it investment grade, you’d have to melt and refine it which is a process that can cost more than the trinket itself!
It’s important to realize that most jewelry has no functional use, either. Without any real utility, it’s easy to see that it’s main purpose must be for getting used as a sign of wealth!
Like jewelry, wine also got its start as a status symbol during ancient times. The Greeks drank it as a display of their wealth which is a trend that continues to this day.
In some circles, people who know about or drink foreign wines are considered to be high class. Most often, the bottles are more expensive which can lead others to believe those who consume them also have greater wealth!
While the price of wine can vary anywhere from a few dollars to many thousand, it’s important to recognize that price is never an indication of quality. Or that you’ll even enjoy it!
Case in point, one study conducted a blind taste test using 3 different wines; one that was low, mid, and high priced. The study found that when participants were told that wine was more expensive, they would rate it as tasting better. When the group was told that a more expensive wine was less expensive, there was no change in the rate. As a result, the study concluded that while pricing can play psychological havoc on your brain, it has little to do with determining the actual quality of the product!
At the end of the day, wine is just spoiled grape juice. And depending on the vintage, some of it has been breaking down far longer than others!
There’s no question that luxury and brand-name clothing are also viewed as status symbols. Some people are willing to fork over hundreds or thousands of dollars for a single item, which can be more money than they make in an entire month!
One problem with fashion is that it’s in a constant state of change. The items that are popular now, won’t be in the months and seasons to come. To keep up, you must constantly buy the latest fad and for most people, this means living beyond their means and wasting money on interest!
The intended purpose of clothing is to cover your body and provide you with protection from the elements. That being said, inexpensive clothing can perform just as well if not better than high-priced clothing, except it’s done for a fraction of the price!
In today’s world where we’re connected 24/7, the device you use can speak volumes about you (pun intended). An old flip phone or Nokia may say you’re old and outdated, whereas the latest iPhone can convey a certain level of economic status to some.
In fact, most of Apple’s products are more expensive than their competitors. Still, most people flock to the brand each time a new product gets released, despite there being minimal improvements.
Most people don’t own just one device, either. They own multiple and have some combination of a computer, laptop, and cell phone, along with a treasure trove of others!
Ultimately, these devices serve the same primary function and owning them all won’t help you achieve your goals any faster. In most cases, it makes the process even more slow going!
One common money myth is that wealthy people drive brand new luxury vehicles and upgrade them every few years. While some do, the majority tend to be more frugal with money and buy used vehicles that are long-lasting!
For example, did you know that billionaire Warren Buffet still drives a 2014 Cadillac XTS? Or that Jeff Bezos was driving an old Honda Accord when he made his first billion?
Most people could learn an abundance of things by studying the habits of the rich. Instead of viewing vehicles as a status symbol, they’d see them for what they truly are – depreciating liabilities!
Although there are some differences between a new and used car, their purpose is the same in getting you safely from one place to the next.
Predominantly, rare items are also considered to be status symbols and art is no exception. Owning a work that is one of a kind, unique, or in short supply can make you look affluent.
Most art collectors search far and wide for masterpieces that are scarce. To find them, they seek out well-known artists with limited edition pieces that also happen to have large price tags. By purchasing these works, it not only shows that they have money, but it may also yield social returns!
For example, many people buy art, along with other status symbols, to fit in or gain entry into a club. In some cases, what you own and how much you’ve spent is even used to establish a social hierarchy within an organization! This is sad since what you own does not indicate the type of person you are or are going to be.
Did you think that drinking a cup of coffee could be considered a sign of wealth? Well in Corporate America, it is!
For many workers, coffee is a status symbol that’s entirely different from the other items on this list. Instead of flaunting wealth, it can send messages that you’re working long hours, sleep-deprived, and important!
New research from Harvard shows that being time-poor is one of the latest status symbols. Many people feel the need to explain how busy they are and that they don’t have time for leisure as a way to appear in demand and vital to their employers!
Unfortunately, most of these same people are the ones who are overwhelmed, overworked, and stressed out. They probably don’t realize it, but they need a break and balance in their lives more than anyone else. Without it, they’re paying the price of their so-called “success” with their health, relationships, and other essential things that money can’t buy!
For most Americans, the ultimate status symbol is their home. It tells the world of their hard work, achieving the American Dream, as well as their debt!
Most homeowners fail to realize that their home is their largest monthly expense and biggest liability. When you factor in the repair and maintenance costs, housing consumes an even larger portion of your time and money!
As most people’s top expense, housing gives you the greatest opportunity to save. By reducing it by a small percentage, you’ll get the biggest bang for your buck and have more money to put towards the things that matter most in your life!
Status symbols aren’t limited to the ones on this list, nor do they have to be objects, either. Club memberships, college education, vacations, and other lifestyle choices can also be viewed as signs of wealth.
While status symbols differ within cultures and can change over time, the point of them remains the same – to impress other people. All too often people spend money they don’t have on things they don’t want to impress people they don’t like!
Which of these status symbols are obstacles to your success? Comment below.
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