Why You Should NEVER Tell People How Much Money You Have
Being wealthy and successful has its advantages. After all, with money comes freedom and the ability to live your life the way you see fit.
There are, however, a few disadvantages. One of the biggest drawbacks is having to deal with people who treat you differently solely based on your net worth. That’s why plenty of rich people embrace the concept of stealth wealth — and why you might want to consider it, too.
What Is Stealth Wealth?
Stealth wealth is the act of hiding your finances and net worth from your family and friends, in part by living below your means. Why would you do that? Simple: to avoid the pitfalls that come with people judging you solely based on the amount of money you have in your bank account.
Of course, being coy about your finances isn’t easy for everyone. But unless you’re famous or come from a wealthy family, applying stealth wealth tactics to your own life shouldn’t be too difficult. And it could save you a lot of awkward conversations down the road.
Why Practice Stealth Wealth?
When you achieve a certain level of success or wealth, it’s natural to assume that your friends and family should be nothing but happy for you. You expect them to love you for who you are, not what you have.
As rosy as that sounds, sometimes that isn’t the case. The moment most people know that you have money, they might stop seeing you as a person and start measuring you for what you have.
What May Happen When People Realize You’re Rich
- You may be asked to solve other people’s problems with your money.
- There may be expectations to pay dinner tabs since a couple hundred dollars is “nothing to you.”
- People’s motives for talking to you may come back to money or investing.
- You may be looked at as a jerk who flaunts his money or a cheapskate who doesn’t spend it.
- Everything you do — or spend your money on — may be under a microscope.
Why You Should Keep Your Net Worth a Secret
We are often judged by our money. And whether or not you change as a person, other people may perceive you to have changed. More importantly, their expectations of your relationship may have changed, too.
Telling people how much money you have can be like painting a target on your back. Flaunting your wealth only paints a bigger target. It will never work in your favor. For every positive that comes from flaunting your money, there are plenty of negatives.
How You Can Practice Stealth Wealth
Practicing stealth wealth doesn’t mean you need to give up all the things you enjoy — just be smarter about it. Here are a few ideas for keeping your net worth a secret:
- Don’t drive luxury cars everywhere you go. Instead, get yourself a stealth wealth car — something reliable, but not flashy.
- Edit what you might say around certain people. Not everyone can relate to the cost of fixing a Ferrari headlight.
- Avoid wearing ultra expensive clothes or jewelry.
- Never disclose your full income or complain about your tax liabilities. No one is going to feel sorry for you that you have to pay 35% income tax on a $500K salary. Especially when they are making five times less than you.
- Don’t talk about businesses you invest in or other income assets you own. Ownership and the ability to invest in private companies will lead people to believe that you have wealth. Opening that can of worms will only lead to questions you don’t want to answer.
It might be hard to hide your finances. If you have a big windfall of money, part of the excitement is being able to tell your loved ones. But while you might be expecting high fives from telling them the news that you’re now rich, they might actually be sticking their hands out expecting something else.
Stealth wealth is a safe way to operate. Become rich — become wildly rich — but don’t live a lavishly rich lifestyle. This is one lesson you don’t want to learn the hard way.