As a personal finance blogger, trying to impress people is not my personality. You can be rich and a spoiled brat or wealthy and a genuine down to earth person that you never once thought was rich.
See how I exchanged the words rich and wealthy?
Thereâs a difference. If you want to know what differentiates the two, check it out here.
Being wealthy provides you certain privileges, a way of thinking, lifestyle, connections, traits and a mindset that those who donât live that comfortably can afford.
Even though I grew up wealthy, Iâm the last person to display my wealth.
If you know me, you know Iâve been taught by my parents since I could understand what âlooksâ are that they donât matter.
Iâm proud to live the stealth wealth, frugal minimalist lifestyle.
Hold on, letâs unpack that.
What does that title mean?
Stealth Wealth: One who doesnât try to show off, comfortable in their own skin with whatever they look like, always try to look like they are worth less in monetary terms not worth less through their personality
Frugal: One who only buys what they need when they need it. Not enticed by what others buy or wear. You wait at least 24 hours + before any purchase unless its food or some necessity and you arenât a shopaholic
Minimalist: Less = More mentality. Crowded life = crowded mind. They are grateful and privileged with what they have and buy investment pieces not junk or trendy stuff that go out of style tomorrow
Now that weâve gotten my lifestyle modo out of the way, we can think about yours.
If you ask 10 people on the street their financial situation, 9 times out of 10, they will say they arenât confident about it and it could either use major to medium improvement. Thatâs not terrific considering we are the richest nation with the largest wealth gap.
As a result, we all need to brush up on our financial literacy and thatâs exactly what a wealthy lifestyle gives you access to. Money isnât an issue so you enjoy learning more on how to make more.
Background
I might have grown up wealthy but my parents didnât. Most millionaires make their own wealth. They didnât inherit it through a trust fund. My parents learned everything on their own moving to America as immigrants in the 90âs not speaking a word of English and somehow getting into college not knowing anyone or having internet access. They grew their wealthy faster than Americans whoâve been here for centuries thanks to their work ethic and diligence. I wouldnât say they were poor but they were middle class but as happy as millionaires since over $75k you donât feel any happier anyway.
Before we get into my experience, letâs uncover what my parents learned about money from growing their income, side hustles and connections in America living in NYC.
Money isnât a Finite Resource
If you view money as a scarce resource you will never be able to attain it. Its supply is unlimited and the government will always continue to make more. If thereâs not enough crude oil in the world, companies and gas titans will tap into more natural resources for sustainable alternative sources of energy instead of fracking. Gas wonât die because cars need fuel, the world will just innovate to EV(electric vehicles). Never fear thereâs not enough for you. Even though Bezos isnât generous to his million underpaid workers, there will be as much as you need to grow.
Money Can Be Produced In a Flash
The US is sitting on trillions of dollars of debt for this reason. They pump money into the economy when necessary. Money isnât reserved for certain forks. It doesnât have favorites, it rewards those who make the universe better and adds value. Rich quick does exist but it dies fast. Just look at lottery winners. 90% of them go bankrupt in the next month after winning. It costs little to no money to produce compared to other inflationary currencies.
Money Isnât Only Numbers
When you stop viewing money as some quantitative metric made out for quant nerds, you will uncover the true power and accessibility of money. It can come in many forms, not just working a 9â5 because then money is taking advantage of you. Get your time back by understanding the amount you put in doesnât equal the amount you get out and real growth means putting a lot of work upfront to guarantee passive income. Thatâs how you truly become wealthy. Letting money grow when youâre asleep with little to no work later through automation.
The True Definition
Now that weâve established the misconceptions about money, letâs quickly understand what I mean by being wealthy.
Iâve stated before that rich is a mindset. If you are healthy, supported, safe and love what you do working minimum wage at Walmart then you still have a rich life. Maybe not according to the outside since people cast judgements based on oneâs looks and possessions but inside you do and thatâs all that matters.
But in this case, I will be talking about the monetary value of wealth.
The average median household income in 2020 was $68,703 and the median home price is currently $340k. When you look at a family that can realistically live on that amount in the states, they most likely live in the heartland (middle) of the country. When you start moving towards the coasts where the most expensive cities are located such as San Francisco and New York, this salary is unsustainable and will make you broke.
For an average Wisconsin or Floridian letâs say, this home price and income is average. It would be considered more than well off, itâs rich but to a New Yorker itâs equivalent to being a student graduating with loads of debt unable to pay their rent for a cock-roach invested apartment the size of a closet in Atlanta.
Thatâs why wealth has different contexts and is relative across the country and world. To someone in Africa or Italy, Americans are better off than any other country because of the amount of wealth that is distributed as the richest country. Instead of living on a few pennies per day in the slums of Nigeria, the poorest live on a few dollars a day here. Either is certainly not acceptable.
Rich can be a mindset up to a certain point. You can feel rich but if you canât keep your job, pay your bills and are living under instant eviction notices, it isnât a feeling of fulfillment. The major part of being wealthy is having a safety net.
As we always say, itâs about how much you keep not earn.
So back to my case, my parents were smart but I wouldnât say geniuses they just were strategically disciplined to make money work for them. In Europe, they knew real estate always appreciates in value because everyone needs a place to live. Thatâs a given fact and will never change.
Even during the housing bubble in â08, while millions of Americans were skeptical of keeping their homes as if they werenât needed anymore, my parents kept them and in fact bought several properties during that time of the low interest rate environment.
Take the unbeaten path to reap the real rewards.
They could easily live off their property investments but why? Working keeps them stimulated and with a purpose! You get a high from completing tasks.
Sticking to appreiacitng, popular asset classes always wins. Money doesnât care about your background or GPA, you have to play around with it and crack the code so it works for you and thatâs exactly what they did.
With the lecture out of the way, letâs dive into what Iâve learned as a wealthy New Yorker:
#1: People are inherently good
There are always going to be bad apples out there but people are truly in the same boat as you and want to do the best they can. Theyâre just trying to find solutions to come by and make their life work out. Those who are mentally impaired tend to be seen as âbad peopleâ but they arenât, they just donât know how to control their conflicting thoughts in their brain. We canât blame them because we have no proper education on how to control our minds at school anyway.
Never judge a book by itâs cover. Money doesnât discriminate.
#2: Money will buy happiness
Sadly or excitingly it will! Thereâs no doubt you become elated when you buy something you saved up for. Thatâs part of earning money anyway. Although saving is always advised and the best way to actually earn more, whatâs the point of working if you cannot make a better life for yourself?
Money can easily shift your mentality as an addiction assuming that the more gold or cars you have, you can slack on building your character now. Titles, jewelry and assets never change your life, the perspective does.
Value being a good, humble and prudent person. Impress yourself not others. Money will help you step into the door of meeting new connections that you must pay for to greet but everything else is in your hands. Money is given to those who deserve it.
#3: We all want the same things in life
Yes, the rich are as down to earth and boring as any average person. They want to feel loved, supported, healthy and safe. These are the basic necessities in life that cannot be replaced. Money can help you eat healthier and stay lean with a Peloton, but it can also be disastrous as you can eat all the hamburgers you want and exercise as a bulimia addict. Too much of anything is dangerous. Money is used as a tool to fuel connections and live a more comfortable life but if it isnât used properly, it can be disastrous.
#4: You Give More
Those with more, give more as a sign of respect, gratitude and acknowledgement for oneâs hard work. These donations usually come in grants to non-profits and shelters that need lump sums to be supported. If you care about people, you give more. Money will help you understand how fortunate you are and helping others is the best way to grow the world. Keeping it all for yourself is pointless and arrogant. It only makes you feel worse.
#5: Money can destroy you and your brain
Money = drugs. Itâs an addiction and influential.
Itâs the main reason most of the world wakes up, unless youâre a student and in that case, youâre burning cash for a hopeful investment in the future.
Think back to how you felt when you earned your first paycheck.
How did it feel?
You probably wanted to work harder despite how tired you were because it felt like the best worst adrenaline rush.
Itâs a great stimulant but too much of anything is toxic. It wonât change you it will only shift your mind.
Remember those who cannot be replaced by money are the most important in your life.
Money will help you earn more but you donât need money to make money. You can learn about that here.
Too much of anything is toxic
#6: Those Who Look the Poorest Are Usually The Richest
Looks are deceiving and so is money.
An average millionaire:
-Wears a $50 Hanes shirt
-Drives a Toyota or Honda
-Lives in a modest home with 2 bedrooms max
-Cooks at home more than eats out roughly 4â5x a week
-Values friends and family more than anything despite being wealthier than those who crave salary
The next time you see somewhere wearing a Chanel bag, imagine how much credit card debt they have to pull it off.
Money is meaningless to those who have lots. Invest it wisely.
Before you dream of being wealthy, dream of being a sincere, down to earth individual with an in-depth understanding of what you will do with that money once you earn it instead.
When you make it, itâs natural to spend it and then feel bad. Set yourself up for success before you have to start over again. Anyone is capable of getting to this position. Whatâs holding you back is your education and preparation.