Have you ever had a family friend, a distant uncle, or perhaps a business associate who seemed completely ordinary, until the day you somehow found out about the unassuming individual’s surprising net worth?

Stealth wealth refers to the technique of keeping one’s wealth and fortune secret from others, such as friends, family, and coworkers. It allows you to live the lifestyle you want without having the status of a superstar.

People who practice stealth wealth seek to stay under the radar, unlike some flamboyant athletes or billionaires who dress in fancy apparel, send lavish presents to others, and flaunt their wealth on social media. Individuals that fit the stealth wealth’ profile are financially self-sufficient and have a high net worth, yet their wealth is hidden.

You might be surprised to learn how many individuals who live in lavish homes or drive flashy cars aren’t very wealthy at all. Take into account the phenomenon of lifestyle creep (which dictates that the temptation to live above your means grows stronger as your income levels increase), or the complete inefficiencies of maintaining a flashy lifestyle, and it’s easy to see how this kind of life may not be very sustainable.

One could argue that many people who show an excessive amount of material wealth either have something to prove or something to sell (as seen in many scam-related personality traits).

What you see less of, is the hidden community of stealth wealth practitioners who don’t live in premium residences (or at the very least purchase premium homes far from sight) or don’t purchase things to attract attention. Yet, their wealth is far more sustainable.

The truth is, many wealthy people keep their wealth information hidden from the public eye.

They don’t brag about their fortune. Instead, they keep their assets, investments, and income hidden to maintain their anonymity. Strangers aren’t the only ones who are kept in the dark about their money. Many affluent people keep their acquaintances, business associates, and even family members in the dark about their fortune.

Here are a few more major reasons why people practice stealth wealth.

#1. You Aren’t Treated Differently

Many people who do not have financial independence find it difficult to relate with the rich. People can treat you differently when they know you’re doing well financially, unfortunately. Some people may be envious of you and reflect their negative energy onto you.

Some might take full advantage of your generous nature to form a close relationship with you before attempting to swindle you or simply “borrow” from you.

Affluent people are frequently told the same things again and again: “You got lucky!” Maybe you did, but money is frequently the consequence of perseverance and hard work. Do you want everyone to know what you’re up to in terms of personal money management or how much you have in the bank?

#2. Identity Theft Can Be Prevented

Once people know how wealthy you are, you become an easy target for theft and identity fraud. If you publicize your income or pay, you increase your chances of being targeted by thieves wanting to steal. Your money will be at stake, but so will your complete identity and personal accounts on all levels.

You can defend yourself from fraud in a variety of ways, including using identity theft software, freezing your credit, and being cautious about who you connect with regularly. It also helps affluent people avoid becoming more of a target for cybercriminals looking to steal money or other assets by practicing stealth wealth.

#3. Less Chance of Physical Harm

It’s a cold world out there, and it’s no secret that a good portion of crime cases are wealth-related. Your car, your home, and otherworldly possessions are all potential marks that can compromise the physical safety of you and your family. Criminals are always on the lookout for victims with plenty of cash to steal (or worse).

The practice of stealth wealth naturally reduces your capacity to expose yourself needlessly. The more ordinary you seem, the less you stick out like a sore thumb.

The general order of money allocation for most stealth wealth practitioners puts security at the top of the priority pile before anything else.

This means that a portion of your wealth is used to protect yourself and your family in various ways, from home security measures and strategic locations to advanced security details comprising technology or professionals.

#4. Develop Truer Relationships

People can’t treat you any differently if they don’t know how much money you have. You’ll be less concerned that your friends, the people you date, and everyone else you meet will not be drawn to you solely to obtain money.

Imagine having to second-guess everyone you meet because they know who you are and how much money you have.

It also alleviates the stress of having to spend money on expensive gifts or paying for each restaurant meal you attend.

#5. Less Pressure to Always “Impress”

When you have a lot of money, you are expected to have the latest technology, wear costly clothing, have the largest home and nicest car, and so on.

You may now amass more wealth and maintain a more balanced lifestyle by avoiding those things early on. You also have less pressure to keep up with other wealthy people. You spend less time going out and buying things since you aren’t worried about spending money.

#6. People Hassle You Less About Opportunities

As your money grows and more people become aware of it, you’ll notice that others are seeking the “next big idea,” whether it’s a little loan to pay off a debt or funds to launch a business.

While it may be a wonderful idea to invest in new enterprises, you may find yourself swamped with inquiries. Many of these could come from strangers or persons who haven’t put any work into their business idea. It won’t only be new business transactions.

You’ll also be approached about new financial services or marketers posing as wealth advisors interested in managing your money. When people believe you don’t have any money, you’ll get a lot fewer questions, if not none at all.

Friends and family members should refrain from asking for a loan or attempting to borrow money. It may not fully halt it, but it will minimize the amount of outreach.

#7. Protection From Malicious Third-Parties

Diversification is a good way to build money without being noticed. When all of your assets are concentrated in one location, it’s easier for people to spot your money. Your assets should be separated across several areas in the age of stealth wealth.

Geographic diversity can help you maintain your anonymity. When an ex-spouse, an attorney, or a dissatisfied business associate comes after your money, they usually start with a search of your assets. If you’ve done your part to keep your riches hidden, there shouldn’t be any signs of it, which may dissuade forensic accounting or an attorney seeking a quick buck.

Because it is considerably more difficult for a creditor to pursue assets owned by many legal companies, diversification should be part of an effective asset protection strategy. This is especially true if they live in areas or countries where privacy laws are strong.

Asset diversification is an excellent strategy to conceal assets or make them more difficult to locate.

Conclusion

It’s simple to be discreet with your money. To keep riches hidden, you must avoid the impulse to show it. In essence, that’s all there is to it. However, the temptation might be harder to resist than you expect.

If you want to keep your wealth hidden from your friends, don’t:

  • Flaunt your wealth or spending on social media
  • Move to a rich neighborhood
  • Drive flashy cars
  • Waste your money on designer items with obvious branding and symbols

To practice stealth wealth do:

  • Live a simple and modest life
  • Buy clothing based on quality and cut, not for their label
  • Buy used or second hand (it’s good for the environment too!)
  • Take vacations, but don’t show it off
  • Upgrade when necessary, not just because you can
  • Learn to find meaning and satisfaction in your life other than gaining others’ approval

In an age of constant connectivity, growing narcissistic tendencies caused by social media usage, rampant consumerism, and a stronger focus on materialistic validation, stealth wealth is being treated as a direct response to so many social ills that have worsened over time. It may be the time that we all learn a thing or two from the stealth wealth practitioners of our era.

 

Do you think that the stealth wealth lifestyle will work for you? Let us know in the comments down below.