The economic downturn, catalyzed by the Federal Reserve’s actions, is fueling resentment towards those who are seen as more fortunate or prosperous. Consequently, practicing Stealth Wealth has become essential for maintaining security and well-being.
I operate a personal finance website, boasting over 2,500 articles, and have observed a marked increase in acrimonious comments since the bear market commenced. The comments, both on fresh and older articles, have become increasingly disdainful, but I choose not to reveal them here.
Many individuals find it easy to vent their frustrations online, holding others responsible for their financial mishaps. It’s more convenient to target others than self-reflect. Deriding others as “out of touch” or “elitist” offers a sense of self-validation.
This growing animosity may explain why some affluent people now attempt to portray themselves as middle-class. Being part of a minority constantly under verbal attack is no one’s preference.
In this article, we will examine an instance where an individual attempted to present as average but fell short. The purpose isn’t to diminish them but to learn how to be more adept at practicing Stealth Wealth.
Public self-exposure demands courage, and I commend her for attempting it. Finding the equilibrium between discreetly amassing wealth and projecting status is a complex task, especially while still actively building wealth and credibility.
A Stealth Wealth Case Study: Misguided Signaling
During the chaos of the Silicon Valley Bank run, many lives and businesses were threatened. A multitude of people, myself included, were anxious to have SVB’s deposits over the FDIC limit safeguarded.
A particular tweet illustrates what was at risk if the Federal Government failed to protect the depositors at Silicon Valley Bank. Through a 23-tweet thread, the author contends that saving SVB was not about the privileged few but rather about the everyday American.
We’ll focus on the initial tweet in this series.
At a casual glance, this tweet skillfully illustrates that Silicon Valley Bank wasn’t solely a haven for tech enthusiasts, entrepreneurs, or Bay Area venture capitalists.
Lindsey, an Ohio mother of four, not only juggles motherhood and startup leadership but also drives a Honda minivan while her husband works in manufacturing.
She epitomizes the grounded, ordinary individual, worlds away from any elite status.
Her tweet subtly suggests that:
- Ohio’s population is more grounded compared to California’s residents.
- Driving a Honda Odyssey is indicative of the middle class, unlike a Tesla X.
- Manufacturing is more respectable than investment or coding.
- Being a mother, particularly of four, is perhaps considered superior to those without or with fewer children.
However, it’s essential not to overdo such portrayals in the practice of Stealth Wealth. Lindsey’s insinuation of superiority as a parent might upset those who are childless by choice or circumstance.
To perfect her middle-class image, she could have concealed her bio and business information, but this would conflict with Twitter’s purpose of personal or business growth.
How Her Stealth Wealth Attempt Failed
Most of us feel a need to communicate our societal status, hoping to expand on it.
Therefore, examining Lindsey’s Twitter bio provides insight:
“Founder/CEO @Strongsuit_co eradicating the mental load so we can all win @ work and @ home; Dreamer, builder, adventurer, feminist, mom of 4; frmr @McKinsey.”
Stealth Wealth Mistake #1: Including a Prestigious Organization
Lindsey’s bio paints her as a superwoman. She’s not only a mother to four but also a former McKinsey employee.
Being part of McKinsey, a renowned consulting firm, is not in line with the Stealth Wealth approach. McKinsey’s acceptance rate is around 1%, and they offer impressive compensation packages, ranging from an average of $129,000 for a college graduate to $452,000 for ten-plus years of experience.
Therefore, including McKinsey in her bio is more of a status symbol, contrary to the image of a “commoner.”
Stealth Wealth Mistake #2: Owning a Business Targeting the Wealthy
StrongSuit, Lindsey’s business, provides executive assistants to busy families, offering services like signing kids up for sports or reminding parents of upcoming events.
This kind of service, at $500 a month, is a luxury that likely only the affluent could afford. This contradicts Lindsey’s message of advocating for the common person.
In summary, while Lindsey’s intentions were possibly genuine, her portrayal contained inconsistencies that highlighted her status instead of downplaying it. Practicing Stealth Wealth requires a careful balance, and in her case, certain elements were mishandled. Her example offers valuable insights for those who want to navigate the complex dynamics of modern societal perceptions and expectations.
Stealth Wealth Mistake #3: Identifying as a Private School Graduate Her last mistake in maintaining a stealth wealth image is her conspicuous mention of graduating from DePauw University and Duke University in her business biography. While it’s normal to include educational background for professional credibility, it can clash with efforts to appear part of the middle class.
Consistency is Key to a Strong Argument The Cost of an Exclusive Undergraduate Degree The yearly tuition for DePauw University stands at $56,030, and the institution’s estimated total annual attendance cost is $71,920. These figures place the university out of reach for most middle-class families unless they receive substantial financial aid.
Additionally, DePauw University’s acceptance rate is approximately 65%, furthering its reputation as an elite institution. With a ranking of #45 on U.S. News & World Report’s National Liberal Arts Colleges list, attending the school may be viewed as a luxury that only the wealthy can afford. Many would be unwilling to pay so much for a non-top-10 school when Ivy League universities charge similar fees.
I personally chose The College of William & Mary because of its affordable in-state tuition. Coming from a middle-class background, private university education felt like an extravagance unless it was highly ranked. Additionally, application fees can be a deterrent for those from moderate-income households.
The Hefty Price Tag of a Top Graduate Degree Duke University’s MBA program, ranked in the top 20, demands $75,000 a year in tuition, with total yearly costs estimated at $106,962. With an acceptance rate of around 24%, it’s an expensive and exclusive option.
Considering the two-year commitment and the high tuition, pursuing an MBA at Duke is a significant investment. However, Lindsey’s substantial earnings at McKinsey allowed her the luxury of attending.
Duke MBA’s full cost for the class of 2025 further illustrates the financial barrier for most individuals. I, too, have an MBA but from UC Berkeley, obtained through a part-time route with 80% tuition paid by my employer. This option was more financially sensible during a time of layoffs in my company.
Project the Right Image Your background can be a valuable asset if you’re building a company or promoting a product. It’s fine to take pride in your education and previous workplaces. But if your goal is to portray yourself as an average middle-class individual, you might want to carefully curate your public biography.
While I admire Lindsey’s entrepreneurial spirit and her commitment as a working parent, her story shows the importance of mindful signaling.
The Delicate Balance between Stealth Wealth and Status Striking the right balance between showcasing status and maintaining a stealth wealth persona can be challenging.
My advice would be to adapt your signaling based on your needs. Highlight your achievements when you require credibility, but don’t hesitate to keep a low profile if you desire peace.
I’ve experienced this balance myself. Between 2012 and 2019, I was content being relatively unknown, focusing on growing my wealth cautiously. But when my children faced school admission challenges, I felt the need to elevate my status. And again, when I released my personal finance book in 2022, I found myself emphasizing my accomplishments for promotional reasons.
Now, back to enjoying the anonymity and focusing on what really matters to me: family, sports, and writing my next book. It’s a journey that has reaffirmed my desire to stay discreet. Sharing personal financial details may be relevant to my credibility as a personal finance writer, but over time, I’ve become more reserved in this aspect. Your financial journey matters most if you’re working towards financial independence.
