Featuring Greg Luken
It’s tempting to compare ourselves to others — especially if those “others” live next door, have a flashy new car and just came back from Barbados. The trouble is that trying to keep up with the Joneses comes with a price.
“Just as peacocks signal to peahens that they are worthy mates by showing off their amazing tail feathers, humans have their own signaling,” explained Greg Luken, author of “Unleash Your Financial Superpowers: How the First-Generation Wealthy Do It and How You Can Too” and founder of Luken Wealth Management.
Instead of feathers, he said humans often use clothing, automobiles, vacations, watches and real estate to display wealth.
You Lease a Luxury Car When You Could Buy a Less Expensive Car
A car purchase can be a signal to the world of your financial status, said Sarah Maitre, CFA, founder of Camriel Advisors.
“A close friend that owns several high-end car dealerships told me he sees people come in all the time buying a car he knows they can’t afford. But when you get right down to it, trying to keep up with the Joneses doesn’t work because the Joneses are trying to keep up with the Smiths who are trying to keep up with the Williamsons and they don’t have any idea what they are doing,” Luken said.
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