The Mistakes Iranians Make When Buying Expensive Houses and Cars in America Instead of Building Wealth the Right Way

By Bobby Darvish, Iranian-American Ex-Muslim, Former Vegan, Former Democrat, Former Socialist, Former CAIR-Columbus Executive Director, Former Muslim Forum of Utah President, Christian Conservative LDS Priest

One of the biggest mistakes many Iranian immigrants make when coming to America is prioritizing luxury over financial stability. Many believe that success must be immediately displayed through expensive houses, luxury cars, and extravagant lifestyles. This mindset often leads to financial instability, debt, and missed opportunities for true wealth-building.

In contrast, the American Dream is about starting small—buying a modest home, driving an affordable car, and focusing on long-term financial growth. Many self-made millionaires in the U.S. didn’t start by buying a million-dollar house or a BMW but instead focused on investments, savings, and business growth.

The Persian Cultural Obsession with Status Symbols

Iranians have a long history of valuing appearances and social prestige. This cultural trait, while understandable, can be financially destructive in a capitalist society where wealth must be built, not flaunted prematurely.

Many Iranian immigrants make the following mistakes:

1. Buying Expensive Houses Too Soon

   • Instead of purchasing a starter home in an affordable area, some Iranians immediately aim for a large, luxury house in an upscale neighborhood.
   • They stretch their budgets thin, leaving little room for savings, investments, or financial emergencies.
   • According to the U.S. Census Bureau, 39% of American homeowners struggle with housing costs because they buy homes beyond their means (U.S. Census, 2022).

2. Purchasing Luxury Cars on Credit

   • Many Iranians believe driving a luxury car, such as a BMW, Mercedes, or Porsche, is necessary to show success.
   • However, these cars rapidly depreciate in value, and high monthly payments drain disposable income.
   • Financial expert Dave Ramsey states that “buying a new car is one of the fastest ways to lose wealth due to depreciation and high interest rates” (Ramsey Solutions, 2021).

3. Focusing on Status Instead of Assets

   • A significant number of Iranians prioritize high-end fashion, jewelry, and designer goods over financial security.
   • A survey by LendingClub found that 54% of Americans live paycheck to paycheck, and those who overspend on luxury items are most vulnerable (LendingClub, 2023).

How Successful Americans Build Wealth

Instead of spending on liabilities, successful Americans build their financial future step by step:

1. Start with a Modest Home

   • Buy an affordable starter home, build equity, and upgrade later when financially stable.
   • U.S. homeownership statistics show that “the average first-time homebuyer purchases a house between $200,000 and $300,000” (National Association of Realtors, 2023).

2. Drive a Reliable, Affordable Car

   • Warren Buffett, one of the richest men in the world, drives a modest vehicle because he understands that cars are depreciating assets.
   • A study by Kelley Blue Book found that the average new car loses 60% of its value within five years (Kelley Blue Book, 2023).

3. Invest and Save Before Spending

   • The wealthiest Americans invest in real estate, stocks, and businesses before spending on luxuries.
   • A report from Fidelity shows that the average millionaire saves at least 20% of their income and focuses on long-term financial planning (Fidelity Investments, 2023).

The Path to True Financial Freedom

For Iranian immigrants to thrive in America, they must embrace the following principles:

• Live below your means – Don’t spend money to impress others.
• Invest early – Start a retirement fund, buy rental properties, or open a business.
• Avoid debt traps – Credit card debt and car loans can destroy financial growth.
• Think long-term – True wealth is built over decades, not overnight.

Conclusion

Success in America is not about showing off wealth but about building it strategically. Many Iranians make the mistake of prioritizing luxury too soon instead of focusing on financial stability. The key to becoming truly wealthy is starting small, making smart financial decisions, and allowing time and investments to grow.

By shifting this mindset, Iranian immigrants can achieve lasting prosperity rather than temporary appearances of success.

Citations

1. U.S. Census Bureau, “Housing Affordability and Cost Burden,” 2022.
2. Ramsey Solutions, “The Truth About Car Payments and Wealth,” 2021.
3. LendingClub, “Paycheck-to-Paycheck Report,” 2023.
4. National Association of Realtors, “First-Time Homebuyer Statistics,” 2023.
5. Kelley Blue Book, “Car Depreciation Rates,” 2023.
6. Fidelity Investments, “Millionaire Savings and Investment Strategies,” 2023.