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Why the Wealthy Steer Clear of Consumerism
The world is currently experiencing high inflation. Some new cars are now selling for 10% to 30% more than their usual price. The media often mentions this as a common example when discussing rising costs.
This is a big trend: many consumers are willing to pay extra for a new car instead of keeping their current one for another year, highlighting the peak of consumerism.
For instance, a working professional who earns a comfortable salary but isn’t a millionaire. Every few years, there’s pressure — from both marketing and social circles — to trade in a perfectly good car for the newest model. Despite the steady increase in prices, the temptation to buy is strong because everyone else seems to be driving something new. Eventually, the constant social pressure and desire for a more lavish lifestyle lead them to purchase the upgraded model at an inflated price — sometimes even taking out a loan to cover the cost.
Now, consider Warren Buffett — one of the world’s wealthiest individuals. Despite his immense fortune, he’s famously known for driving older, modest cars instead of purchasing the latest luxury models. For him, a car simply needs to get from Point A to Point B, and upgrading every few years isn’t a priority. This choice shows that having money doesn’t mean one must always buy the newest thing on the market.