How the Uber Wealthy Live a Lowkey Life
Wealth Is Quiet. Rich Is Loud. Poor Is Flashy.
Have you observed how wealthy people live? Not the ones that show off their money, but the real wealthy people. Warren Buffet is a classic example of a really wealthy person. You will always find his name in the top 10 of the Forbes list of richest people in the world. But he doesn’t look rich. He lives in a small house he bought decades ago. He drives a Cadillac, carries a flip phone and enjoys affordable meals. Even at the age of 94, he still hasn’t retired because he loves what he does.
This blog is not written to dictate how you should live your life. Neither will this blog tell you that luxury is bad. This blog is written for those who carry the burden of living a lifestyle to satisfy others. This blog will look at how and why some of the ultra-rich live a frugal lifestyle and how you can adopt it too.
What is Stealth Wealth?
We have heard stories of rags to riches and vice versa. It is tough to get rich but even tougher to stay that way. As we start earning money, we have this tendency to show it off. We build houses bigger than what we require. We buy more cars than we need. We stock up our wardrobes with luxury clothing. As individuals, we consume more than we need. We spend so much on depreciating assets. This consumer mindset keeps us away from financial independence. We have to work all our lives to buy things we do not need to impress people who don’t matter.
Wise people understand what they need in life and what makes them happy. They do things they love and live only to satisfy themselves and not others. Flaunting wealth is a huge burden. People who practice stealth wealth value their privacy, freedom and relationships. They prefer people who value them for who they are, not their wealth. They keep their financial success private instead of displaying it. They realize flashy items don’t improve their life. Owning more things just reduces our freedom and adds to our stress. So let’s learn how people with the stealth wealth mindset live under the radar and how it helps them become financially free.
They Understand Their Value
People who know their value don’t struggle with controlling their impulse buying tendencies. They know what they are and what they want. They understand what adds value to their life. If you are spending on things that make you happy instead of making other jealous, then you will spend far less than what you spend now. You won’t fill up your cart with random items. So create a budget for things that make your life better and add value to it.
They don't compare their life with others
It is hard not to compare ourselves with others, especially if we grew up in a family or society where we are respected based on our power, status, money, fame etc. Naturally, people tend to show off their status by flaunting what they have and living above their means. The amount of money some people spend on marriage costs their lifetime earnings just because they don’t want to be seen as lower than their neighbors or relatives. This puts a burden even on the coming generations, keeping them away from enjoying financial freedom. Instead of worrying about how you look to others, be grateful for what you have. Gratitude reduces your temptation to try and fit in with those around you.
They prioritize time over material possessions
The more you consume, the more you have to work to sustain that lifestyle. Managing, organizing and maintaining your possessions will steal more of your time and energy. For example if you have more cars, you will need more time and money just to maintain them. Prioritize financial security over flashy purchases. Simplify your life by reducing unnecessary wants to become financially free so you have more time for meaningful experiences.
They manage their biggest expenses
Wealthy people prioritize financial independence over luxury spending. Many millionaires choose to live in middle-class neighborhoods instead of posh areas. Homes are one of our biggest expenses. Spending more on housing will limit our flexibility and freedom. Cutting down on your biggest expenses will let you spend on smaller luxuries. Buying used cars is one way wealthy people spend less on big purchases.
They Control Spending Growth
When our income increases, we subconsciously increase our spending instead of saving or investing that extra income. We only focus on upgrading our lifestyles. It is okay to do that, but do it only where it is needed instead of blindly increasing spending. People who overcome this habit make strategic decisions about how much to spend. Allocate a part of your extra income to wealth building.
They Avoid Bad Debt
Debt can make you appear rich even if you might be struggling financially. You have to pay high interest rates on loans taken for depreciating assets. If you can’t manage your debt, it will snowball into a financial crisis. Pay your credit card bills fully on time and avoid borrowing money for unessential expenses.
They increase their net worth
A higher income doesn’t mean a better life. Some people live paycheck to paycheck, not knowing how to manage their income and the lifestyle creep. As their expenses increase with income, it prevents them from accumulating wealth. More than your income, how much you have left after you spend is more important. Wealthy people increase their net worth by reducing liabilities.
They Employ Consistent, Low-Risk Investment Strategies
Wealthy people don’t go for flash,y risky investments. They build wealth using time-tested methods that may seem boring but are stable. They diversify their portfolio and reduce risk in long term instead of following short-lived market trends. They don’t chase quick money schemes but stay patient and stick to a plan.
They Surround Themselves with Frugal People
Your close circle has a influence on your lifestyle. Engage with people who know their value and dont flaunt. Even social media has an influence on you. Don’t think that everyone on social media are having a great life by seeing what they post. Follow content that supports the lifestyle you want to live. Stealth wealth requires conscious choices.
They discuss about money
Create a space where you can have meaningful conversations about your finances. Inspire your close circle to make wise financial decisions. Teach them saving and investing. Those who show interest will align with your financial goals. Helping more people to make smart financial choices is rewarding.
Conclusion
True freedom comes from having the power to live the life we wish and not what others want. Limit extravagant spending on focus on what adds value to your life. Invest on safe assets and save enough. Create the mindset that gives you contentment with what you have without worrying about societal expectations.
Frequently Asked Questions (FAQs)
Stealth wealth helps you build financial security, reduce stress and focus on things that really matter in life.
When people don’t see you as a financial resource, your relationships become more authentic and genuine.
You will have a lot of savings and investments in your portfolio. You will have enough cash in hand for emergencies. You will become more financially independent than your peers.
Recommended posts
Millionaire Mind Intensive is about unlocking your financial freedom and strengthening your relationship with money.
Quick Links
Contact Info
Success Gyan India LLP
S5, Thiru Vi Ka Industrial Estate,
Guindy, Chennai – 600032