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Porsche. There is no substitute. – Tom Cruise, Risky Business

When I was growing up, I don’t remember caring about labels. It wasn’t about getting or giving expensive gifts. It was about being safe and warm.

Maybe, that is why to this day I still keep things until they fall apart because of the memories attached to them. Not to mention it’s cheaper.

Today, I have noticed a shift in kids. They are so focused on what’s on the outside that I feel that may begin to forget that it’s what’s on the inside that counts.

I know it’s cliché, but I do not want the next generation growing up thinking that they are less than because they don’t have on the expensive pair of shoes or have the hot new cell phone.  

In my opinion, the best gift you can give your kids is to not be a financial burden to them.

That means saying no to pricey things today, so that you can have the money necessary to live and enjoy life tomorrow.

MONEY DOES NOT FIX ALL THINGS

Prada and Gucci and Dior, Oh My!

That sounds like something Carrie Bradshaw would say on Sex and the City.

See my post It’s a Suit, Tie, and High Heel City for more on Sex and the City

Following the diamond bricked road can be dangerous.

However, I hear more young people taking about incredibly expensive name brands and labels than in any other point in my life.

I, myself, am a little more like Rory from Gilmore Girls.

Things are not that important to me. I am perfectly fine with a good book. My parents did not spoil us.

In fact, we were encouraged to work and be thrifty. Our parents just were not buying it. It wasn’t really about the money; it was just not needed so our parents said no.

My father would always say that you have to learn to accept no just like you accept yes.

From him, I learned not to be spoiled or to spoil children.

Spoiled kids turn into rotten adults.

When you never hear the word no, you can get very upset.

Teaching young people today to be thankful and grateful for what they have is something that will be good for them to know and use throughout the rest of their lives.

Spending money does not always equate to happiness. It can make things easier, but it does not solve every problem. And in some ways, money can cause more problems.

See my post More money more everything including problems

CHRISTMAS STOCKINGS STUFFED WITH LABELS

I had a friend recently tell me she knew someone who had a kid that asked for Gucci boots for Christmas.

How do they even know about that?

And they want the real stuff.

Got some diamonds round my neck no fugazi – Future lyrics off the Streetz Calling album

Fugazi is just another word for fake.

I looked up the price of Gucci boots. The lowest price I found was $980. I have gone on vacations for less. After tax, you are paying $1,000 for one pair of boots! Absurd.

The only teenager that deserves a $1,000 pair of Gucci boots is on stage with her two friends Kelly and Michelle.

That money could be used for books for college or starting a fund for tuition.

You have to use your dollars wisely today or you may not have them when you need them tomorrow.

DIAMONDS OR STOCKS

You could buy designer purses or expensive vacations. But those things are fleeting.

Especially, if you come back home to a stack of unopened and unpaid bills.

You are right back in the same situation before you left or bought that designer handbag. What sense does that make?

Who cares if you own a Tiffany bracelet if your rent check is late or worse yet, bounces!

Diamonds around your neck or wrist won’t keep you warm at night.

Things will not feed you, make you happy, or pay your rent.

However, having a passive income stream can.

Money that is working on your behalf is like the gift that keeps on giving.

A stock can be like a goose that lays a golden egg.

If you own a mutual fund comprised of hundreds of stocks, then you can receive dividends and interest on the money you invested.

With a return rate of 7 percent over 30 years, the following can happen to your invested money:

• $1,000 can turn into $7,5000
• $10,000 can turn into $75,000
• $100,000 can turn into $750,000

And that is without adding another dime to your initial investment.

Think of how your money could grow if you added money annually.

If we add an additional $3,000 (that’s $250 a month) every year, we get the following:

• $1,000 can turn into $300,000
• $10,000 can turn into $400,000
• $100,000 can turn into $1,000,000

You read that right. Start with an initial investment of $1,000. That pair of Gucci boots.

Putting away an additional $250 per month for 30 years can net you $1,000,000!

FAT STACKS ARE FAR BETTER THAN THINGS

Basically, if you could forgo pricey labels, you could save and invest your way to a fortune.

For me, that is far more exciting than having some diamonds on my wrist.

While a diamond bracelet is nice to look at and pretty to hold, a stock is something that never gets old.

I tell people all the time to get the money first, then you can buy whatever you want.

Money in the bank or sitting in a brokerage account is far more valuable that getting the latest hot gadget.

Once the novelty wears off, all you are left with is another trinket or item that sits in your house and collects dust.

I know there is no substitute for quality.

What I ask you to really consider is opportunity cost? If this item will bring you long lasting happiness and prosperity?

If not, then you should focus on doing the things that will.

I am just a blogger.

I can only advise you.

It is up to you to decide.