Vincent Chan shares the tips people seem richer than their friends: "You don't fall behind"

It’s easy to feel when people show off their highlights on social media. Financial experts Vincent Chan Recently dissected this trend and people seem richer than they actually are.

It’s important to know how people act rich, because breaking the exterior walls can lift you out of the “keep up with Jones” cycle. Instead of comparing wealth based on the appearance of your friends, Chan recommends focusing on your financial situation. He even provides an optimistic thought to keep in mind.

"You're not behind," Chen assured his followers.

According to Chen, these are the ways people look richer than their friends.

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Most people use credit card debts to look richer than they do. High credit card debt allows people to buy luxury goods, and if they show them, they may look rich. But, this is not actual wealth.

Chan explains that Americans have an average of $7,000 in unpaid credit card debt. It looks good and doesn't necessarily translate into good financial situation. Chan mentioned that most millionaires drive cheap cars and wear normal clothes.

Becoming a millionaire in the long run involves saving money and making good financial decisions. Even if these people can’t afford the luxury of debt, many avoid buying because of their financial habits.

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Many people compare themselves to others. They see others as the benchmark for success, but many of these comparisons are attributed to material goods. That's part of why using "Keep Up with Jones" has been used for over 100 years.

If someone in the friend group has a luxury handbag, the others in the friend group will follow suit. Chan says you can avoid this cycle by building a clear vision for your life and knowing what you want.

Achieving meaningful life goals can allow you to compete with yourself, rather than comparing others and using them as a benchmark to evaluate your success.

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Visible expenditure is another characteristic of people who seem rich but are not actually wealthy. If someone drives in a luxury car and has the latest iPhone model, it feels like he is ahead of you. But real wealth comes down to intangible details like your bank account, stock portfolio, financial security and peace of mind.

You don't know someone's account balance and the visible spend does not mean that a person has money to spend. Some people go deep into credit card debt to create the look of wealth. That's why it's important to build wealth silently without feeling the need to show off it.

The person who shows off the most is rarely real wealth. As Chan mentioned earlier, most millionaires look like ordinary people and do not want their own financial development.

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This article Vincent Chan shares the tips people seem to be richer than their friends: "You don't fall behind" originally appeared on benzinga.com.

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