The ultrarich regard luxurious cars and lavish homes as liabilities that take money out of their pockets, certainly not assets.
Only the middle-class who are not really rich (but think they are) regard those as assets. They certainly are assets to their bank, not assets to themselves.
The Founder of Wal-Mart, Sam Walton who died leaving nearly USD 100 Billion in net worth drove a pick-up truck only during his entire lifetime!
Warren Buffett lives in the same house that he bought decades ago while he was not a Millionaire yet. And he's the World's richest investor.
Indeed, it's a common misconception that luxury items like expensive cars and lavish homes are assets. While they may have some value, they often come with significant ongoing costs such as maintenance, insurance, and depreciation, making them more of a liability in terms of financial management.
Sam Walton's choice to drive a pickup truck despite his immense wealth is a testament to his frugality and focus on practicality. Similarly, Warren Buffett's decision to continue living in the same house he bought decades ago exemplifies a mindset of prioritizing long-term financial stability over conspicuous consumption.
For the ultra-rich, true assets are often investments that generate income or appreciate in value over time, such as stocks, bonds, real estate, and businesses. These assets contribute to wealth accumulation and financial security in the long run, rather than draining resources through ongoing expenses.
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