You may think you can spot signs of someone’s wealth at a glance. Surely you just look for designer clothing and purses, yachts, fancy cars, gigantic mansions or diamonds dripping from fingers, right? Not necessarily.
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There are many signs of wealth you wouldn’t notice from such a lofty perch. Real money isn’t always obvious, and large amounts of it don’t always drive up in luxury cars. If you’re wondering who is living life in the wealthiest ways possible, here are 10 sneaky signs to look for to determine if someone is wealthy.
They Can Afford the Price of Peace of Mind
Real wealth isn’t just about having a fat bank account; it’s about feeling secure and stress-free where finances are concerned. It turns out that money may not buy happiness — but it certainly does buy peace of mind.
It’s less about having more, and more about feeling financially stable. Wealth can bring a certain kind of mental and emotional freedom that others don’t have, and that’s not something you can see necessarily by just looking at a person.
They Can Afford To Be Generous
Many affluent individuals are deeply involved in philanthropy, because it’s not a great look to not share your millions. Hopefully, though, these generous donations to charities are mostly for the betterment of mankind and not just the tax write-off.
However, this also might not be something wealthy people talk about — they may just do it quietly.
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They Value Experiences Over Things
The wealthy often prioritize experiences over material possessions because they already own everything money can buy. If you buy an expensive pair of shoes or go on an expensive trip, which are you more likely to remember in five years?
Wealthy people have the luxury of being able to travel more and experience unique opportunities, which can be a sign of a higher income than your average person.
They Use Private Banking Services
Among the less obvious signs of wealth is access to private banking products and services. This level of financial planning often requires specifically curated bank accounts, tax-advantaged investment strategies and other high-end financial services.
Private banking doesn’t necessarily come cheap, so if you know someone who uses this type of service, chances are they are well off.
They Have ‘Time Affluence’
A sneaky but highly telling sign of wealth is “time affluence,” or the feeling that you have enough time to spend on doing whatever you want. This is typically only possible for those who don’t have to work to survive or pay your bills.
Time affluence can look like extended vacations, leisure activities, or the freedom to focus on personal and relational development without worrying about the immediate financial impact.
They Know How To Network
Frequent networking and association with other financially stable individuals can also serve as a hidden sign of wealth. Networking is a win-win situation, as it can often lead to more opportunities to grow wealth.
They Save More and Spend Less
You may associate wealth with flashy purchases like fancy cars, extravagant homes and expensive jewelry. But being rich is about how much money you have, not about how much you can show that you spent.
Living beneath their means isn’t necessary, but wealthy folks tend to live in a modest $2 million home as opposed to an unnecessarily lavish $10 million one.
They Properly Diversify Their Investments
Wealthy individuals often manage their finances with astute investment strategies through a team of advisors or planners. This may include holding a diversified portfolio that has stocks, bonds, real estate and other assets.
At the same time, rich people know the benefit of minimizing risks and maximizing returns.
They Have Access to High Quality Education
Access to high-quality education is another less apparent indicator of wealth, one that can lead to better career opportunities and higher paychecks. The wealthy tend to prioritize education and continued learning, which is ultimately a great investment for long-term returns and success.
They Can Live Debt-Free
With the price of many things increasing drastically over the past several years, credit card debt has reached new highs. However, anyone with significant wealth isn’t going to rely on their credit card to finance large purchases that pop up. Instead, they’re going to pay with cash.
This sign of wealth perpetuates more wealth, too, as it means they are avoiding high interest rates on loans as well. Everyone would love to be debt-free, but only the rich seem to pull it off regularly.
Final Take To GO: Financial Safety Nets All Around
The bottom line is that wealth is like a large down payment on a certain kind of freedom and lifestyle. Being able to make choices without financial constraints is the ultimate flex that someone could have way more money than you originally suspected.
The wealthy aren’t worrying about living paycheck to paycheck like most people, because they have a financial safety net of significant savings and diversified investments that help them through almost any monetary challenge. Simply put, sneaky signs that someone is wealthy usually include a healthy work-life balance and a greater ability to pursue passions and hobbies.
Jordan Rosenfeld contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 10 Sneaky or Unrecognizable Signs That Someone Is Wealthy
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