The current economic downturn, seemingly triggered by policies from the Federal Reserve, has ignited frustration against those perceived to be wealthier or more successful. With this escalating resentment, the practice of Stealth Wealth becomes essential to maintain safety and contentment.
I operate a personal finance website hosting over 2,500 articles, and the increase in hostile and aggressive comments since the beginning of the bear market has been noticeable, though I will not detail them here.
Some individuals naturally resort to the internet to vent their frustrations, blaming others for their financial mishaps rather than themselves. Criticizing others or labeling them as “elitist” or “out of touch” might provide a sense of self-justification.
It’s not surprising, then, that some affluent individuals might want to portray themselves as middle class, as they want to avoid being targeted with constant insults.
This article explores a specific instance where an individual attempted to convey an average image but didn’t quite manage to pull it off. The aim here is not to demean but to learn from this experience and enhance our own Stealth Wealth strategies.
Publicly sharing one’s life requires courage, and finding the right balance between Stealth Wealth and status during the process of building wealth and credibility can be challenging.
A Study on Stealth Wealth: Missteps in Signaling
During the panic surrounding the bank run at Silicon Valley Bank (SVB), many lives and businesses were endangered. Many were concerned about ensuring SVB’s deposits above the FDIC limit, myself included.
The importance of the situation was illustrated by a 23-tweet thread, arguing that saving SVB was not about benefiting the elite but ordinary people across America. This included Lindsey, an Ohio mother of four, startup founder, and Honda minivan driver. Her husband is in manufacturing, and she seems to present herself as someone far removed from the elite class.
Lindsey’s tweet hinted at several aspects, including:
- Ohio’s more grounded population compared to California.
- Honda Odyssey as a middle-class vehicle.
- The nobility of manufacturing compared to investment and coding.
- Parenting, especially having four children, as a superior choice.
While portraying oneself and possessions in an ordinary light is good Stealth Wealth practice, going too far can cause resentment. Also, implications about parenthood superiority can be offensive to some.
To improve Lindsey’s middle-class portrayal, she could have concealed her bio and company’s nature. However, that would defeat the purpose of Twitter to promote profiles or businesses.
How Stealth Wealth Strategies Went Wrong
To enhance status, one must project it to build upon it and achieve greater success. But in Lindsey’s case, certain strategies backfired:
Mistake #1: Her Twitter bio, mentioning her position at a prestigious organization like McKinsey, worked against her Stealth Wealth image. This consultancy firm is known for its high salaries and tough selection process, making it a status symbol.
Mistake #2: Her business, StrongSuit, which provides executive assistants to busy families, caters mainly to affluent customers. A service that costs $500 a month for family assistance does not align with her appeal for the average person.
Mistake #3: Listing her education at DePauw University and Duke University contradicted her Stealth Wealth image. These institutions are expensive and typically associated with the affluent.
Consistency in signaling is crucial for a strong argument.
Lessons from the Analysis
Showcasing one’s achievements and background can be important when building a company or personal brand. But if the aim is to present oneself as an ordinary person needing support, it may be wise to remove markers of status and wealth.
While some may view Lindsey’s actions critically, it is clear she is working to solve a real problem and showing immense courage in juggling her entrepreneurial efforts and family life. Her example provides valuable insights into the careful balancing act required when trying to convey a particular image.