Why Stealth Wealth Is the Best Way To Handle Your Money
Stealth wealth, as explained by Experian, is all about financial privacy. In today’s society, broadcasting wealth on social media or even just among coworkers and friends can make you a target for exploitation. Whether bad actors attempt to hack your accounts or loved ones come with their hands out, showcasing your earnings may have unfortunate consequences.
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Keeping information about your income and assets private can help protect you from a wide range of uncomfortable and potentially unsettling situations. Individuals who practice stealth wealth often have significant amounts of money, but few people know about it. They keep it under wraps in order to safeguard their assets.
For many people, stealth wealth may be one of the best ways to handle your money and create a stable financial future. Here’s what you need to know about the money trend.
What Is Stealth Wealth?
It’s unclear when the trend started, but in 2008 at the height of the Global Financial Crisis, the Tampa Bay Times reported on the effect that the downward economy had on recently minted millionaires.
As it noted, millionaires weren’t as ready to flaunt their riches as their predecessors. Many of them were living more reserved lifestyles, patiently waiting for the economy to turn around. They held onto their wealth instead of spending it on material things and those that did were greatly rewarded.
Fast forward 15 years and many of the OG stealth wealthers have kids who are coming of age or entering adulthood. They have likely learned from their parent’s financial practicality and played coy with their net worth. Whether they have established a name for themselves in business or simply live off of family money, they aren’t as willing to showcase their wealth to the world.
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What Are the Benefits of Stealth Wealth?
There are a multitude of benefits to practicing stealth wealth. One of the most important is that keeping quiet about your assets can deter bad actors. With the majority of financial information being kept online, hackers have developed innovative ways to infiltrate accounts.
Whether through SIM card swaps or through phishing, bad actors may be drawn to people they know have a large amount of wealth. Cryptocurrency holders are particularly susceptible to this kind of hacking.
Remaining quiet about your wealth can also stop unwanted money requests from friends or extended family. If people aren’t aware of your wealth because you choose not to flaunt it, then they may be less likely to ask you for money.
How To Achieve Stealth Wealth
As explained by Financial Freedom Countdown, there are several steps that you can take to achieve stealth wealth. Being stealthily wealthy is all about keeping the amount of money you have private. This begins by not discussing your net worth with others.
Next, you’ll want to avoid posting about how you spend money. Set your social media accounts to private so that only the people you want to know about your latest vacation can see your pictures.
Finally, you can set up a trust to protect your assets. A trust is one of the best ways to provide for your loved ones without the information being broadcasted.
Why More People Are Choosing Stealth Wealth
As during the Global Financial Crisis, we currently find ourselves in a period of economic instability and uncertainty. To avoid financial hardship, people must take a long look at their lifestyles and how they spend money. By living a more fiscally responsible life, they can ensure stability in the future when the economy begins to turn around.
Practicing stealth wealth now can help you withstand any market fluctuations. It can help you provide for your family and allow you to live comfortably without the worry that people will come to you when they need money. Stealth wealth takes a different mindset, but it is not impossible to achieve.
If you are unsure of where to begin, one of the best places to start is with a financial advisor. Someone with extensive experience in investments can help you understand the best place to put your money while avoiding a public display of your riches.
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This article originally appeared on GOBankingRates.com: Why Stealth Wealth Is the Best Way To Handle Your Money