The Ultimate Flex

Showing off your money and achievements is a timeless thing. People have always been drawn to the fun and hard-to-resist habit of comparing ourselves and showing off what we’ve got. We’re always trying to keep up with those around us, constantly watching others’ successes and seeing how they stack up against our own. Social media has really made this even more intense, since now we’re seeing a much bigger picture. With just a quick look, we can see the best parts of people’s lives. Plus, we can peek behind the scenes of the super rich and famous, which we never could before.

We might not even realize we’re doing it— comparing ourselves to others. I’ve personally noticed this unhealthy habit over the past couple of years. So, a few years ago, I decided to limit each social site to 30 minutes or less per week. It’s just enough time to check notifications, find local events, or shop on local marketplaces. And, of course, a little bit of scrolling, since I’m human. But, to be honest, I almost find it repulsive to scroll now. It’s like, wow, this is silly!

Guess what? My social media detox actually turned out to be a fantastic mental health boost! It was so empowering to step back and not be constantly worried about what others think or say about everything.

As I went through this social media cleanup, I noticed something fascinating: how we, as a society, show off. “Flexing” is just another way to say “flaunting.” And it seems our flexing and comparing really shape how we act.

So, what does showing off usually mean to us? I’d say it often comes down to wanting others to see us as successful, wealthy and happy.

It’s a bit disappointing when the things we show off don’t always truly represent what we’re trying to highlight. Consider those $80k cars, $50k home renovations, $50k weddings, and $10k vacations—they might not always actually mean wealth, success, or happiness. But in places like the United States, we’re often taught that these things are the signs of success.

It’s not to say that a brand new car doesn’t bring some excitement, or that an expensive wedding or vacation doesn’t create memories that last a lifetime.

So, the real question is: could we experience the same joy, excitement, and memories without spending so much? Or are we just trying to measure ourselves against what we see others have, thinking that’s what we need? It’s worth wondering how much of what we feel about what we need or want is really our own, and how much is shaped by what we see others doing. That’s a thought-provoking question.

To help answer that, I’ve often thought about an interesting social experiment. Play along with me for a second and let your imagination wonder.

Imagine you’re heading to the store tomorrow, and you start spotting people wearing black shirts with white numbers and letters on them. As you get closer, you notice they’re all in the same style. After a few, you realize they’re all balance sheets, with “net worth” at the bottom followed by numbers. It’s a bit strange, you think.

Then, over the next week, you start seeing more of these. It’s like they’re everywhere! You see balance sheet memes popping up on social media. After a quick search, you realize this is a new trend. It’s a way to show off your net worth. Those with very low or negative numbers are probably feeling a bit embarrassed by their numbers and can’t seem to find a date. Just a few weeks prior, their lifestyle was super valuable in the social pecking order with their fancy car and lavish life. Now, all the attention seems to be on those with big net worth numbers. Suddenly, the person driving a 15-year-old Camry is the “it person.”

In this wild situation, think about how quickly everyone’s actions would shift all over the world.

Imagine if folks with substantial bank accounts started to see their social standing and online presence grow. YouTube videos about being frugal would explode in popularity, DIY projects would become the norm, and buying things without thinking would be seen as unappealing. New businesses would spring up, all geared towards saving money and investing more. Suddenly, driving a $100,000 car might not be the ultimate status symbol anymore. The notion of living beyond one’s means and believing you can always afford it would likely disappear. What we value would definitely change.

Would we be happier?

It really shows how much of what we see and do is shaped by the comparison trap. It would be a fascinating social experiment to see how this plays out, while also keeping track of happiness levels over time.

I suppose a blend of both approaches is a happy medium. But the lines can and do easily blur. I constantly evaluate big purchases. Is this a need? A want? Will it bring lasting value and joy or is it a certain level of ridiculousness that will offer but a quick dopamine hit, followed by a plunge back down to consumer purgatory?

Over the past 16-17 years, I’ve often pondered what motivated my own actions. It seems like it all came down to what I considered the cooler thing. Was it wearing a big cowboy hat and playing the part, or a more understated cowboy hat with a herd of cattle and tons of land? I never wanted to be just a show-off without any real substance or resources. Or as they say in Texas, “all hat and no cattle.” Ultimately, who and what I valued shaped my actions, and it just so happened that my values were quite different from what most people valued.

What would your t shirt say?

The Grand 2023 Experiment

Unbeknownst to anyone, a shift occurred in the life of Beau Pearson for the year 2023. Dare I say it, I slowed down. I slowed wayyyy down! I burned the candle from both ends so to speak, making less money and spending more. Just saying that out loud as I write this makes me cringe. And yet..this was on purpose and just because.

Why you ask? Why purposefully spend more and make less? Well, I wanted to see what that would look like financially at the end of the year and how I would feel about it is the short answer. Would I wish I didn’t do it? Or crave more of this new found easier path? Perhaps I would want to tighten up and grind extra hard to make up for the lost productivity. So many things to consider. But I did feel it was time to pivot. After 12 years of grinding due north to strict GPS coordinates, it was time to put the boat on cruise control and simply check in from time to time to make sure I was still heading what I will call “basically North.” I wouldn’t call it burn out, but at some point there has to be a course correction. So what did I do differently and how did the chips fall at year end?

For one thing I bought a “just because” car. I didn’t need a new car. I just wanted the feel of a new one and the experience of driving around in style. Especially when I want to go for a nice night out or cruise around for pleasure. I kept my old one to use as a daily driver. Which has been working out great. Averaging well over 40 mpg in the city, it’s a perfect commuter car. Plus I’ve had it since 33k miles and I take really good care of it. So now I have two cars. I don’t like the added insurance but it’s not that much more. Anyway, cost of this new car was $35,154.62 out the door. In May of 2023

Then, around the middle of December 2022 some long term tenants I had notified me they wanted to break their lease early. They were extending their family and needed some more space. Due to this, I was going to have a dreaded vacancy smack dab in the middle of my 12 day vacation I had planned in February! Now, the old me would have surely used that time to save money by fixing and painting things myself.

The new me however, said the heck with it. I made a detailed list of 27 items with photos, called my handyman/contractor and did a walk through with him explaining what needed to be done.

Finished and ready to list

As for me, I came into work one morning shortly after and decided to take a cruise during this vacancy instead. I called Norwegian and said “I want your biggest and or newest ship for a week.” You have to understand, this would have been unthinkable not that long ago. Not only was I going to have an expensive contractor bill when I returned, I was going to spend a pretty penny for this cruise. But I was in pivot mode so, let’s go!!

Spent a week aboard the Norwegian Encore

Finally, the last change I made was just indulging and spending more freely. I didn’t just throw money away. But if I wanted something I didn’t hesitate let’s just say that. While this may be normal to my readers, certainly not normal to me. Up until this point there would have been a rigorous debate in my head if I truly needed it or if could I do without it. Or put another way, was the purchase a want or a need? Those questions still happened but I relaxed my justifications and happily purchased some things that without a doubt made my time on this earth more enjoyable, more efficient and/or just plain better. I also took the liberty of updating my wardrobe and shoes.

Taking stock of 2023, how did I do? Here is a summary of what I refer to as retained earnings for 2023:

  • Free Cash Flow $33,437.10
  • 401k $24,500.00
  • Net Rentals $8,673.53
  • Total $66,610.63

So it was a pretty damn solid year. I ended up spending $7,432 more than the average over the previous 5 years. Some of this was due to inflation, but some my own doing for sure. Certainly the cruise and added auto insurance for a second vehicle played a big roll. Nonetheless, my total retained earnings for 2023 were $66,610.63. I took $6,500 of the $33,437.10 in free cash and transferred it to a Roth IRA. The remainder went to paying off the car note of which $23,418.29 was paid down. Also, I decided to build up my cash on hand. As a result, I decided to open an American Express High Yield Savings to store this excess cash, so whatever I didn’t put towards the car note I moved to the HYSA, which has an APY of 4.3%. It’s not the best interest out there but well above average. I have multiple Amex cards so it was just easy.

All the work I’ve done over the last 12 years really paid off last year. Stocks and real estate both had impressive years. My net worth climbed $263k on the back of both my stock portfolio and the equity increase in my investment real estate. My stock portfolio climbed a whopping 173k for the year. I did contribute 31k of new money to the stock portfolios between the 401k and Roth IRA. Also I had $15,142.63 of dividends reinvested. So all in all, $46,142.63 was invested in stocks taking into account new money and dividend reinvestment.

So what’s my take on the new Beau? I would say this experience was worth it. I’ll keep being a bit more loosey goosey with my monies and continue heading “basically North,” being sure to at the very least keep it between the navigational beakers.