Published on January 10, 2022
Do you know the difference between being rich and being wealthy?
Well, a wealthy individual is the one who is cautious about their finances; they spend money wisely while investing and saving a bigger slice for a secure future. So it’s safe to say that their proportion of saving/investing versus spending tilts towards the former. However, the balance is either equal or bends more towards consumption for the rich squad.
This lifestyle, popularly coined as Stealth Wealth, is a rising practice observed across high-income societies. Simply put, stealth wealth is the art of making better life choices with your finances.
This trend raises some questions:
● Why do the wealthy not ‘flaunt’ their wealth?
● What kind of decisions fall under the stealth wealth lifestyle?
● Is this lifestyle worth it?
Let’s discuss each of these concerns in detail.
Have you wondered why the famous high net worth individuals not flaunt their wealth? Let’s take names like Mark Zukerberg, Bill Gates, Warren Buffet and Satya Nadella. Can you recollect any apparent signs that classify them rich? With regular clothing and modest appearances – it’s clear that these smart individuals follow the stealth wealth approach.
A stealth wealthy lifestyle equates a person making intelligent money decisions that prove fruitful in the long run. Notably, it includes taking wise financial calls, like investing in assets or securities that hold the potential to increase your wealth over time.
This is where consulting a financial advisor is a crucial decision to take. With their fair and well-researched guidance on finances and wealth, an advisor assists you with achieving your goals plus leading a balanced life.
Discover: Why Investing Is Better Than Savings?
Times are changing, and so are people’s perceptions. Earning money is more straightforward than preserving and growing your wealth. The art of a good lifestyle stems from making decisions that prove beneficial in and for the long run.
While these reasons hold merit to practice the stealth wealth lifestyle, some other reasons motivating this
Wealth attracts people to form relationships, sometimes for reasons other than genuity. I’ve often heard HNIs express their desire to strike real relationships – those built on genuine connections and emotions, not on their bank balances.
When we raise concern on behavioral discrimination against the less well-to-do community, shouldn’t we avoid price discrimination against the rich?
Suppose you’re availing of a service that costs 500 dirhams ($135). But your clothes, phone, car, and other ‘obvious’ materialistic purchases signal the contractor to classify you under the ‘rich’ category. And they end up invoicing you for 1000 dirhams ($270).
While you may afford the $270 service in general – it’s unethically not an appreciated or valid activity. Thus, many people prefer adopting a stealth wealth approach to avoid rip-offs.
Money is a sensitive spot to be in, especially in personal relationships. Your wealthy status might attract ‘lending’ requests from people you might find hard to say a no to. While there is no harm to help the people in your life during a crisis, isn’t it better to decide if you want to help vs. the need to support them?
I take this section as an opportunity to explain how I view stealth health better.
A rational mindset and a balanced lifestyle positively impact your efforts to build your net worth. Yes, expensive purchases evoke strong happiness (& sometimes accomplished) emotions – but these materialistic pleasures do no good to add any form of value to your life.
A successful business/a good job is necessary but insufficient to grow your net worth. What you need is the art of spending wisely, acting cautiously on your investment calls, and living a balanced life. Being rich holds its perks but also brings its share of challenges.
So, in my opinion, yes, the stealth wealth lifestyle is a good spot to be in – and something you should consider adopting in your life.
If you’re ready to undertake the stealth wealth approach or want to learn more about this trending lifestyle – book a slot with me to get your concerns clarified today.