People pretend to be rich because spending now feels better than saving for later, and the data shows it: the US personal saving rate was 4.1% of disposable income in August 2026, far below the 15% of pre-tax income that a common retirement guideline suggests. The fix is to stop spending for show and start saving first.
Pretending to be rich vs actually building wealth
| Pretending to be rich | Building wealth |
|---|---|
| Spends first, saves what is left | Saves first, spends what is left |
| Buys status items on credit | Buys assets and pays cash for wants |
| Cares what friends think | Cares about its own future |
| Retirement is a problem for later | Contributes to retirement every month |
Why are there so many people pretending to be rich?
Many of them have no intention of saving for the future and would rather spend it now, like I usually do. They spend on houses, cars, consumer goods, travel, clothing and electronics, and the list goes on. These things come before saving for the inevitable retirement.
I once read a quote that fits here: spend your money on experiences, not on things. I believe people are doing just that. They live in the moment, the moment when they have money, and they buy things they do not need with money they do not really have.
A balanced financial life can be hard to achieve. It involves living within your means and saving for retirement.
A well-balanced financial life should include saving for the future, because you do not know when you will need a safety net, especially when you are too old or too sick to work. A common guideline is to save at least 15% of your pre-tax income each year for retirement, including any employer contribution.
The tools are there. For 2026, the 401(k) employee contribution limit is $24,500 and the IRA limit is $7,500. Few people come close to using them, and the national saving rate of 4.1% in August 2026 shows how little is being set aside.
Older generations leaned on pensions, and many people today cannot
Our generation and the one before us have partly overcome these fears thanks to pension programs and Social Security. Many people during their adult lives never needed to save much for retirement. If you want to do anything in later years besides work until you die, you will probably need a balanced financial life that includes steady retirement contributions.
But as expected, not many people do that. They place a much higher priority on what they want now. They have to make hard choices between their biggest excesses and saving, and they tend to choose the double mocha latte or the newest iPhone over the security of their future.
Those people always need more money, so they end up cutting retirement savings to afford more items.
The conclusion: stop pretending
Many people pretend to be richer than they are. Some do it to impress others, and others do it for the YOLO (“You Only Live Once”) feeling. Few people actually notice the car you drive or the clothes you wear, and even fewer care.
Think about your future. Your worry should not be your friends or what they think of you, because in the end you face your problems alone, not with them.
We advise you to stop pretending and actually get rich, because here are 49 reasons why it is better to be rich than poor.
Keep reading
- 15 money habits that keep you poor: the spending patterns behind the show
- 15 signs you are in money trouble: a check before it gets worse
- 15 things to stop buying if you want to be rich: where to cut first
FAQ
Why do people pretend to be rich?
Usually to impress others or because of a live-for-now mindset. Spending on houses, cars, clothes, travel and gadgets feels better than saving for a retirement that is decades away.
How much should you save for retirement?
A common guideline is to save at least 15% of pre-tax income each year, including any employer contribution. It is a target, not a hard rule, and it depends on when you start and when you want to retire.
What is the US personal saving rate in 2026?
The August 2026 figure was 4.1% of disposable personal income, according to the US Bureau of Economic Analysis.
How much can you put in a 401(k) in 2026?
The employee limit is $24,500, and the IRA limit is $7,500, according to the IRS.
How do you stop pretending to be rich?
Track what you spend to impress others, set up automatic saving before you spend, and replace status purchases with ones that build assets or experiences.
Does anyone notice what you drive or wear?
Far fewer people than you think. Our view is that most people are too busy with their own lives to care, so spending for their approval rarely pays off.
Last updated: October 2026.
