Okay, I’m going seriously left of centre today.
But, there’s a massive lesson in this and I bring it all together in the finale.
Let’s jump straight in.
More evidence that the world’s gone mad…
Take a look at this jacket here. This is a Marmot Mammoth Parka. On the streets of New York (like I would know) it’s known as a biggie because of it’s baggy shape.
To start with, one of these retails for around US$680. Yep. That zero is supposed to be there. Now I haven’t spent a lot of time in cold climates, but is that a reasonable price to pay for a parka? Seems pretty over the top to me. Maybe it is lined with actual mammoth fur.
But with exclusivity comes desirability. And with that hype comes the news that people are now getting killed for their biggies in New York. Earlier in the month a teenage boy was shot at an ice-skating rink after refusing to give up his biggie. A 14-year-old boy was caught up in the mess and was shot in the back.
The senselessness of the tragedy is stupefying. Of all the things to die or kill for, how is a day-glo parka one of them? Seriously, duck down to Lowes (Department store in Sydney), you can pick up a Mr Big high-vis jacket for 20 bucks.
But this isn’t a new phenomenon. People have been killing people for sneakers since the 80s.
In June, a man tried to rob customers waiting in line for the new US$180 Lebron X Denim Sneakers. But prepared and ready, one of the customers pulled a gun and shot him.
Seriously. Look at these shoes.
Such ugly pieces of crap. If you paid me 180 bucks I still wouldn’t wear them, and definitely not if there’s a chance that I might get killed for them.
It’s tempting to write it all off as one of those crazy only-in-America things. But we did have kids robbing each other for shoes here too – though I don’t think anyone was ever killed.
Maybe it only becomes news in America because there are more guns on the street, and if you’re a disenfranchised minority, life is more desperate. It’s a bit more ‘kill or be killed’.
But I think it also shows us something universal about human nature… and highlights one of the traps on the road to wealth and financial freedom.
And that’s the trap of ‘status goods’.
Your definition of a status good differs on your life context. On the streets of New York its expensive jackets and sneakers.
In Australia it’s more likely to be that Mercedes Benz, a Rolex watch, a flashy house in a well-to-do suburb. If you’re a teenager, it could an I-phone or a particular brand of clothes.
We buy ‘status goods’ to make a statement. I am this kind of person. I have climbed this far up the social tree.
Remember the Seiko ad? “It’s not your car or your clothes… it’s your watch that says most about who you are.”
Buy the watch. Make the statement.
But there are three massive dangers in this kind of thinking.
The first is that status is a relative concept. Your relative position in the social tree requires that there be monkeys below you.
And so rocking out some kind of status good is the same as going around saying, “I’m better than you.”
That’s not very nice. And if this is the vibe you’re putting out into the world, what do you expect to see reflected back at you?
(Some guy with a hoody and a knife?)
No body likes to be the monkey at the bottom getting crapped on.
The other thing that comes with relativity is that your ‘status’ only lasts as long as it takes for everyone else to get what you’ve got. And so we all get locked into an endless treadmill of bigger, better, flashier.
But finally, and this is the real kicker, a concept of status is only compatible with a scarcity mentality.
Let me break that down. I’ve written before about the importance of having an abundance mentality. If you believe that there is limitless abundance in the world, then you will effortlessly welcome wealth into your own life, you will see and seize the opportunities when they arise, and most importantly, you will be generous and beautiful person. It’s the biggest wealth ‘secret’ I have to teach.
But it follows that if you have a scarcity mentality, then the opposite applies.
And a status good by definition is something you have that other people don’t have and can’t have. They can only exist in a world of lack and limit.
But if you believe that it’s true for the monkeys below you, then you must believe, even if only subconsciously (and this is the level that really matters) that it is true for yourself.
The world is limited and the wealth of one excludes the wealth of another.
This is a very, very dangerous idea. Give to much power to this and the road to financial freedom will become a long, fearful slog.
Most rich people I know don’t understand why everyone isn’t rich. They believe there are infinite opportunities to attract wealth into your life. They know the pie is endlessly expanding. And if someone makes a fortune, it doesn’t mean that there’s any less for them or anybody else.
And so they celebrate everybody’s success. And as I’ve said before, they don’t get into the flashy cars and bling. They don’t have a point to prove.
Now I’m not anti-consumerist. I love my things. But I love what my things do for me, not what they say about me.
There is only one truly sustainable source of love and respect and self-worth. And it’s definitely not status goods.
It’s ourselves.
Put the work into loving and accepting yourself, and you won’t be sold on the marketing drivel that watches can make you feel valuable and worthy.
And then you will be free to spend money on the things that really matter to you – your friends, your family and investing in your financial freedom.
It’s as simple, and as difficult, as that.
Gil Elliott says
Very profound and needed to be spelt out in these days of throwaway rampant consumerism
I have been in Consumer Electronics sales for over 35 years and consumers are just crazy now with their wants and expectations
Is anyone happy now when they buy something ???!
Tony Shurety says
Hi John,
I mostly read and delete your posts, just taking what’s relevant to me and I’ve never contemplated commenting before. But this post grabs me, because it resonates with my basic beliefs, and it’s put so simply.
We all have the power to be, and achieve what we want, and it’s completely inclusive. Everybody can do it, and it applies to everything we want.
The bottom line is that the most important things are family, friends and freedom. Money just helps.
How magic is that!
Gloria says
Hear! Hear! A great article.
ags says
love love this article – thank you for the laugh that you have brought to a very important topic 🙂
Max says
Good to hear someone putting some common sense thought on paper for a change.
Kit says
Thanks John. That was so poignant and so very true 🙂
Wendy Walker says
Hi John,
Thank you for your refreshing blog today, a reminder to us all what true wealth is! Where it dwells and how it can be resourced.
Impressive!
Louisanna says
Thanks for sharing such a great idea John
andrew says
Hi Jon,
Dont you just hate it when someone spells your name wrong?
Nelu says
Now look here Andrew,
ah generally spell your name wrong and mostly cos they are…
I don’t know what it is ; attention seekers /AH
Don’t hate that Andrew, raise above hate. You’ll leave longer and if not,happier .
Christine says
Beautifully written, and I agree totally. Thanks for reminding us on the issue of Abundance, and that it is for everyone.
Katarina says
Decided to read a couple of your older articles about real estate and negative gearing. I resonate with some responses (from adam the accountant and Mr Parker). My comment is that cashed up chinese investors will most certainly be welcome if it reduces the Fed govt’s negative gearing bill. My concern with residential property is that it’s only going to grow with a continuous population growth through more immigration or more Aussie children with jobs leaving the nest at a younger age. Looking at the expensive jacket in the above article seems to represent residential property – it’s not for me. However, being able to finance residences for each of your children is a rational goal.
Let’s stop the greed in the residential market so that blue collars who actually work in our increasingly congested cities could aspire to pay off their mortgages. If Australia lets wealthy foreigners buy apartments then it must be because their heirs are studying at an Aussie uni, or they have business interests here and they need a place to stay. I hope there is some regulation here because there’s no fair trade when the chinese system is rigged by communism (thanks to foreign geopolitical influences from decades ago). Julie Bishop was right to say what she did. By the way, I liked last night’s new story about a shiny new magnesium smelter that’s going to happen in Victoria. Industrial property rules!
Ken. says
Katarina, you are a mixed potion, aren’t you. Julie Bishop won’t stop the greed and just watch as she backs away from mouthing off like her mouthy friends. Ken.
Nerina says
Hey there great article! Should be front page news oh, that’s right good news doesn’t go into newspapers that would educate entertain and inspire everyone, and well, we wouldn’t that happening!
Glenn says
Thanks for your post John. It couldn’t have happened at a better time. Just spent the morning with a work associate at his McMansion surrounded by expensive toys. I must admit, left there feeling like one of the monkeys further down the tree. I appreciate the pep talk. It has enabled me to refocus on my goal and not get caught up in the race for blingy crap.
KontraryKiwi says
Hi Jon,
Great article, very well written too! 😉 Love, it, except for one thing.
“Most rich people I know don’t understand why everyone isn’t rich. They believe there are infinite opportunities to attract wealth into your life. They know the pie is endlessly expanding. And if someone makes a fortune, it doesn’t mean that there’s any less for them or anybody else.”
This is quite simply NOT TRUE! (Last 2 sentences, anyway.) This is very old, flawed, “convenient” capitalist thinking. That is what we (some of us anyway) are finally coming to realise. And those who haven’t yet, may be forced to, one day soon.
Most rich people don’t understand … because they don’t WANT to. (There is none so blind…) If we did, most of us would have to realise that we are in reality greedy, selfish, anti-social hoarders of wealth, assets, energy, the products of others people’s sweat and toil. We are the monkeys on the upper levels of the pile, crapping on the ones below… We might have to suffer feeling guilty, and might even feel torn between our money and loving our fellows. Better not to think too deeply.
In reality, NOBODY gets rich “for free”. NOBODY. All riches are the result of someone’s work, in some way. There is only so much real wealth available. There rest, is, as you so rightly say, just an assortment of trinkets.
Trinkets, with the same purpose as they have always had. To “get the money” off the lower monkeys. And in so doing, make them even lower.
The Bible spelled it out a couple of thousand years ago. The rich will get richer, the poor will get poorer. It’s that simple. That is an absolute truth, and today, the extremes are probably far, far worse than they ever were 2,000 years ago. We still have people who survive on a couple of dollars a day (Virtually nothing, picking over rubbish piles). But on the other hand, we have greedy multi-billionaires, by the dozens.
And, just like you say about people who have the latest fashion clothes or fashion gadgets, it’s ALL about looking, or feeling, or thinking you’re better than the lower monkeys. Most people “respect” money much more than trinkets. SO, what’s the real difference between the money lovers and the jacket lovers? Surely, it’s only the scale.
Harvey wallbanger says
Hi Jon.You are on the money as usual.Love your blog.
It is sad to think that not everyone can be wealthy but at least Any one can be.
Con K says
Hi Jon. Thank you for another excellent and insightful article. It is indeed true that there is plenty of room at the top and that money is only a way of keeping score. Once you get money out of the way you can focus on the true essence of life – to spend time living, loving and learning.
Greg says
Nice one John. There are three words that have echoed in my head for the last 10 years, and they were put there by my father in law. He said ‘ Image costs money’.
Paul says
I see your point and agree, but I think you ignore the concepts of power and the tribal belonging – perhaps the extended family. Often in US gangs people kill others because thats what the gang requires to belong. The stolen trinket is just opportunism. Are you sure that inside the gang, your values are not applied?
Grant van Wingerden says
I completely agree with this post Jon. I try to avoid those “rich crib” kind of reality shows as they are more enervating than anything. I keep wondering why these people didn’t get the basics right first. They seem dishonestly rich; having no idea what to do with all that money and wasting it on tasteless and ostentatious displays. I mean, if you can’t think of anything better to do with your cash than buying a wardrobe full of shoes you’ll never wear then you would literally be better off walking out into the street and handing out money to the needy.
Graeme says
As always John… the complex made simple!