Men Lie, Women Lie, Numbers Don’t

     When it comes to many things, especially dating, it is a fact that both men and women alike bend the truth. Let’s be honest. We all want to be considered desirable by potential mates. It’s one of those “nature” things. It’s not the intent of this article to discuss the vast array of lies men and women tell. (That would be a seven part series.) Rather, the objective is to hash out one deceptive tactic in particular: the wealth illusion. This article delves into the error of attempting to evaluate a potential suitor based solely on their material possessions – the appearance of wealth.

     For many women looking for a male partner (The same holds true in reverse.), unless someone comes right out and asks for a screenshot of a bank account, the normal assessment is based on the appearance of earning potential. Probing questions such as, “Where do you work,” “What kind of car do you drive,” and/or “Where do you live?” may skillfully find their way into a conversation. Normally, before the questioning phase is even possible, an unspoken, observational examination has already been performed. A lot of individuals in the dating scene choose to not even waste their time if they don’t consider someone’s vehicle, style of dress, or appearance appealing.

     The point here is that the appearance of wealth does not necessarily equate to having true wealth. In other words, a person can dress to impress. But that impression may be a false one. In fact, the person under consideration may look to be financially stable, while being up to the brink in debt. Easy credit, via credit cards and loans, allows the appearance of financial well-being. The person could actually be a couple of paychecks away from the whole charade imploding.

     The true measure of someone’s financial situation is the personal financial statement. A personal financial statement is like a financial report card. It provides a snapshot of true financial standing at a point in time.

     As shown below, the personal financial statement consists of the income statement and balance sheet.

     The wealth illusion, often permitted by excessive debt, gives the appearance of high income and financial stability.

In actuality, the true case could possibly resemble the following.

Notice that liabilities take money out of your pocket.

     The takeaway is knowing what the personal financial statement is revealing. The car, jewelry, and fancy things may look appealing to the eye, but it’s better to know that they won’t be getting repossessed or pawned any time soon.