According to Wikipedia, “entitlement” refers to a notion or belief that one (or oneself) is deserving of some particular reward or benefit.
In a previous blog, I shared my observation that an entitlement mentality for the “bling-bling” life style has taken over the entire USA, so it seems. Entitlement drives people to living outside of their means. Every time I pull up to a stoplight in my beat-up ten-year-old Honda Civic, I am certain to see a late model high-end luxury car or SUV next to me. Those things can easily cost between forty and sixty thousand dollars, or more. I can literally buy several houses for that kind of money. Before I knew anything about money (except for how to spend it), I incorrectly assumed that the owners of these fancy cars were high income earners. I know better now. Chances are, the driver of that Lexus parked next to you borrowed $50,000 from a bank at a payment of $900 per month for the privilege of looking fly. I remember reading in one of Dave Ramsey’s books that “…America is the only place where you can pull into a gas station in a Jaguar and not have any money to fill it up.”
You can likely name your friend or acquaintance that has “keeping up with the Jones” syndrome. Some people are just committed to the attainment of material possessions in spite of their ability to afford them. A swipe of a credit card can keep them in the lifestyle they think they deserve. And why do they think they deserve it? Simple. Why not? It seems that the old American tradition of living frugally and within your means has been tossed out of the mainstream consciousness and replaced with I want it and I want it now.
Don’t get me wrong, I completely sympathize with the feeling of wanting to enjoy the finer things in life. But the real trouble here starts when people confuse the attributes of wealth and financial freedom for actual wealth and freedom. I am here to tell you that true wealth, if not inherited, takes time to build. True wealth can be measured not by one’s possessions, but by the duration of time one can continue to uphold their lifestyle if confronted with financial duress.
The entitlement mentality is a reason for financial failure because when people suffer from it, they spend their money on stuff that makes them feel wealthy, instead of saving and investing in order to build true wealth. In summary, your ability to control the need for instant gratification is prerequisite for financial success!
From Money Fundamentals by Ben Leybovich
© Copyright 2012 Ben Leybovich and Just Ask Ben Why. All Rights Reserved.