As the wealth gap continues to widen, it may be beneficial to learn how to convince people you are middle class when you’re actually rich. Otherwise, you might become target enemy number one when the revolution comes!
To get things out of the way, I feel rich. Not only do I feel rich, but I also have enough passive income to be time rich. Being time rich is my favorite form of wealth.
After chronicling my journey to financial independence since 2009, there’s really nowhere for me to hide. Hopefully, people will give me some credit for all the years of hustle since graduating from college in 1999.
To avoid the guillotine, my hope is that consistently writing free content 3X a week to help everyone achieve financial independence will be appreciated. After all, I’ve got nothing to sell, except for a severance negotiation book, which many readers have said gave them the courage to change their lives for the better.
Even when many large media sites put up a paywall during a global pandemic, Financial Samurai stayed free with free podcast episodes as well. My goal has always been, no matter your level of wealth, to provide access to anybody looking to improve their personal finances.
Besides, as a minority, there should be more leniency as well when the uprising comes. It’s cool to be a minority nowadays. That is, unless Asians are considered not enough of a minority worth fighting for. In which case, please have mercy!
How To Convince People You Are Middle Class When You’re Rich
With Joe Biden as President, class warfare rhetoric has picked up. I distinctly remember heightened class warfare rhetoric during the Obama years (Jan 20, 2009 – Jan 20, 2017).
The Occupy Wall Street movement rose up as Main Street got crushed during the last global financial crisis. Remember the classic slogan, “shit is fucked up and bullshit“?
For a large portion of the population, everything is hunky dory now. But for another portion of the population who doesn’t aggressively invest and who doesn’t have easy ways to make money from home, things are not as good. Therefore, we must be aware of this dichotomy and act accordingly.
There’s also a decent chance we could go through another recession again under the Biden/Harris administration. With so much euphoria being bought with so much debt, things could end very badly for millions of people.
Well, surprise, surprise, a bank run ensued at Silicon Valley Bank and now the middle-class is at risk of getting destroyed. When the Fed is run by a Chairman worth well over $100 million, do you think he really cares about the middle class over his legacy? Of course not.
Hence, if you are a rich person, you must be prepared for anger by the middle class. Let me share some strategies I’ve learned from rich people on how they’ve convinced others they are middle class.
How To Convince People You Are Middle Class Strategy #1: Criticize Other Rich People
When you want to deflect attention away from yourself, one of the best strategies is to criticize other people just like you. Therefore, if you are rich, it’s wise to try and assimilate with the middle class.
Use words like “out of touch,” “triggering,” “clueless,” “living in your bubble” and so forth. Let me share a great example that just came to me after a journalist at MarketWatch highlighted this tweet from a wealth management professional.
On Twitter, Michael Batnick, Director of Research At Ritholtz Wealth Management, criticized a $400,000 household income budget. Too bad he didn’t link to the post, as that would have provided more context and nuance. But his tweet seems to have resonated with many people.
I’ve spoken to dozens of households in NYC, LA, San Diego, San Francisco, DC, and Boston who make between $200,000 – $600,000 a year. I’ve also cross-referenced these budgets with my own budget to make sure the numbers are realistic. The reality is, this budget is pretty common for families with children living in expensive cities.
Housing and tuition costs aren’t a secret. You can easily look up online what a typical 4-bedroom, 3-bathroom brownstone costs in Greenwich Village, Brooklyn, or San Francisco. Childcare and preschool tuition regularly cost between $2,000 – $3,000 a month.
A Nice Boost In Wealth Since 2020
It was smart of Michael to criticize this budget to put himself on the side of the middle class. Over the past seven years, as the Director of Research at a ~$2 billion money management firm, I’m sure he makes a hefty multiple six-figure income.
Although not entirely apples-to-apples, Directors in banking often make well over $500,000 a year all-in. Now imagine if you were a Director Of Research at an investment bank. You’d probably make closer to $1.5 million a year.
When Ritholz Wealth Management applied for a PPP loan in 2020 (and paid it back), it was reported their assets under management were only at $1.3 billion. Therefore, a 54% surge in AUM is quite a success and has made their employees even wealthier due to leverage.
Can you imagine if your net worth surged by 54% in one year during a pandemic? You’d be giddy as heck!
The wealth management business is highly scaleable. It does not take more manpower to manage $2 billion in assets versus $1.3 billion in assets. As a result, the employees at Ritholz are making even more money today plus have more valuable equity stakes in the company. With such an immense surge in wealth, learning how to hide in plain sight is important.
Adding On Side Income For More Riches
In addition to making a multiple six-figure salary at Ritholtz Wealth Management (RWM), Michael also makes money from his website and side hustles. He has sponsors for his podcast and blog that have nothing to do with his main business.
You’d think selling other products and services while working at RWM would be in violation of SEC rules. But I guess not!
As a personal finance blogger for 14 years who also worked in finance for 13-years and consulted for a digital wealth advisor, I understand how much you can make online as well.
Too bad I wasn’t able to concurrently make a finance income and online income while I was working. It wasn’t allowed under company policy as my old firm didn’t want any conflicts of interest. This is one of the reasons why I decided to leave in 2012. I wanted the freedom to do as I wished.
But at Ritholtz Wealth Management, all its employees are encouraged to have personal websites to not only make money from advertising, but to also serve as lead generators to sign up new clients to their firm.
It is a fantastic strategy! I wonder why more money management firms don’t deploy such a strategy. But, again, there might be some legal reasons or conflicts of interest with larger firms I’m not aware of.
For example, The New York Times recently told its journalists that all new private newsletters need to have management approval first.
The combination of healthy online side income plus Director Of Research income clearly makes Michael a wealthy man. I’m glad for his success. He deserves it. This is America, where dreams do come true! It’s just important to stay humble, especially during these times.
Oh, and my offer still stands good rich people at Ritholz Wealth Management. If you’re looking to diversify your workforce, I’m a minority who has the relevant finance and online media experience to help grow your business! I would just require a total compensation of at least $400,000 a year as well. Thank you for your consideration.
How To Convince People You Are Middle Class Strategy #2: Display No Material Wealth
To convince people you are middle class, you should drive a beater. A beater doesn’t have to be a car that has smoke coming out of its exhaust. You can drive a slightly-used Honda Accord or even a Toyota Highlander to blend in. Those are reasonably priced cars that attract no attention.
If you are a rich person who likes cars, then you should follow my one car for show, one car for dough rule. When it’s time to drive back to the office, you should drive your dough car (Honda Accord, Toyota Camry, etc). When it’s time to drive to Shinnecock Hills Golf Club on Long Island, only then should you drive your show car (Lambo, Ferrari, McLaren, etc).
Not only should you drive a beater to work, but you should also not wear fancy jewelry or watches. Any ostentatious displays of wealth can get you robbed or kidnapped. Remember my war cry, “Gap not Gucci“! Wearing a baseball cap and sweats when you go out is a good strategy as well.
Always Hide Your Home Address
Finally, you should never give anybody your house address. Thanks to Zillow and Redfin, even if their online valuation estimates are unreliable, people can easily deduce how much you make using my 30/30/3 rule for home buying.
For example, let’s say you live in a $3 million house. My 30/30/3 rule would indicate you make around $1 million a year. Worst case, you make at least $600,000 a year (1/5th the house value). Banks really aren’t lending more than 5X your annual household income anyway.
Another thing I learned from my beachfront dream house post is that you should never post any house pictures online. Even if you do not reveal the address, someone can download your picture, and then upload the image onto Google to do a reverse search. If the picture was ever used anywhere on the web with an address, the address will be discovered. Curb your desire to show off!
How To Convince People You Are Middle Class Strategy #3: Communicate Poorly
Back in the good old days, I went to Mallorca, Spain with a bunch of friends. We went out for paella at 10 pm and started discussing relationships. As a Stealth Wealth champion, I asked the woman next to me how she was able to tell if a guy was rich if he displayed no material wealth.
She insightfully responded,
“By the way he speaks. Can he hold an intelligent conversation while looking you in the eye. His mannerisms are very telling as well. For example, at the dinner table, will he offer to serve others food first? Will he make sure his neighbor’s glass of sangria is always full?”
Therefore, if you want to appear middle class at the dinner table, serve yourself first!
Avoid The Trans-Atlantic Accent
When communicating, don’t use big words or speak in a Trans-Atlantic accent as Kelsey Grammer did in the sitcom TV show, Frasier. Dr. Frasier Crane is American. But due to the way he speaks, you might think he was a doctor from the UK. Instead of speaking like Dr. Crane, speak more like his father.
You can hear the Trans-Atlantic accent in Audrey Hepburn movies and in the first Cinderella and Alice In Wonderland movies too.
Back in the ’30s and ’40s, wealthy people, mostly on the east coast, decided to adopt this hybrid Trans-Atlantic accent as a “class” marker. You know, that “Hah-vahd English” sound. Rich people taught it in boarding schools such as Andover, Deerfield, and Exeter.
Obviously, if you are middle class or poor, you didn’t attend boarding school unless you received a scholarship. Therefore, you should speak as a normal person does! Perhaps you want to speak with a lot of pauses and use the word “like” a lot. Examples: Like, uh, how you doin? Oh, and don’t tell anybody you went to private school either.
Use Upspeak To Sound Less Intelligent
Consider also using “upspeak” by ending many of your sentences in a rising tone like you’re asking a question even though you’re not. Upspeak helps make you sound less intelligent. Incorporate slang, especially the latest generation slang as well.
When it comes to communicating on social media, you must be particularly careful. Most people on social media tend to curate and display the best of themselves. Therefore, if you want to convince people you are middle class or poor, you can take the opposite route.
How To Convince People You Are Middle Class Strategy #4: Do Not Reveal You Have Rich Parents
I was reading a piece by a New York Times Opinion writer who said she had children young and that’s OK. She lives in New York City, an expensive city with her lawyer husband.
It’s wonderful to have kids. And of course it’s OK to have kids young if you can afford to. However, kids cost a lot of money and time. Not everybody is lucky enough to make a living from home or afford childcare.
The author of the article went to Brandeis University, where tuition is $59,000 a year. The all-in cost to attend one-year at Brandeis is about $80,000 a year. I’m pretty sure that if more people had parents wealthy enough to pay huge private university tuition, more people would have kids at a younger age as well. Having wealthy parents is a huge safety net.
Therefore, just like with private school, never reveal to anybody you have a trust fund and wealthy parents. Not only will you reveal you grew up rich, a lot of your work will get discredited as well, rightly or wrongly.
Convincing People Is A Skill That Takes Practice
The most skilled people at convincing others something they are not is the politician. From taking photo opportunities holding babies to going to places of suffering for speeches, politicians are experts at convincing people about their agenda. Therefore, if you want to learn how to convince people, simply study your favorite politician in action.
If you think about it, how else can an extremely wealthy politician hold office, while claiming to represent the interests of the middle class and poor?
How is it possible to convince the masses to ignore the fact many politicians went to expensive private universities, live in multi-million dollar mansions, send their children to private grade school, eat at restaurants that charge $500 – $1,500 a head, and so forth? It’s impossible without developing the power of masterful persuasion.
Just be careful about doing too much virtue signaling. Eventually, people will get sick of all talk and no action. For example, if you say something like, “we must help the poor,” while having a billion dollar net worth, it gets old after a while.
You can try to go my route and tell things the way they are. You can also be relatively transparent to others about your financial journey. However, I DON’T recommend following me if you want to get richer and more loved.
For example, at least twice a year, I get beaten over the head by the Internet Retirement Police. And the IRP are frequently the most privileged people around!
The middle class is the best class because nobody bothers you. Politicians fight for you because they want to win the most votes. As a middle class citizen, you are part of the majority who can overcome any minority if you want to. If you are rich, learn to convince people you are middle class. Your life will be better if you do.
Related posts:
Are You Smart Enough To Act Dumb Enough To Get A Head
Be Rich, Not Famous: The Joy Of Being A Nobody
The Definition Of Middle Class Is The Same As It Ever Was
How To Convince People You Are Bad When You’re Actually Pretty Good
Reader Questions And Recommendations
Readers, what are some other great strategies to convince people you are middle class when you’re actually rich? Why do some people try to convince others they are rich when it’s better to convince others they are middle class or poor?
If you are truly rich, please do more to help others get ahead. Volunteer your time. Donate money. Mentor kids. Fight for equal opportunity. Be aware of systemic racism. Speak up when you see an injustice. Society is no good when there is such a great dichotomy in wealth. Fight on!
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I’m an Asian immigrant with the typical poor upbringing, lived in public housing, etc, and have been doing all the middle class things you talked about not by choice, but because I’m actually poor and resort to a frugal lifestyle. Now that I’ve “made” it, being financially independent, I’m still working as it helps sell that I’m middle class. My investment grew significantly over the pandemic and now it makes more than my annual salary.
While I intend to look the middle class part, wearing free t-shirts with ads sometimes with holes in them too and driving a 20 years old car, I’m beginning to doubt the purpose of stealth wealth and the dilemma it will cause.
1. Retiring early will give it away as I have no reason to quit because I love my work in cybersecurity and my coworkers. I want to be time rich so I can spend time with my kids who will be teenagers soon.
2. I don’t flaunt my wealth, but if I don’t change my spending habits soon, I might as well be the richest man in the cemetery.
3. Even if I only spend 4% of my net worth, which will practically ensure my net worth will not be depleted, but likely continue to grow, I must live a 200k a year lifestyle. (yeah yeah what a problem to have) The real problem is my kids will inherit the wealth. While they’re financially literate and are grounded for now, living a 200k lifestyle throughout their teenage years, will undo what I’ve taught them and eventually squander it.
For those reasons, why continue the stealth wealth? I recently replaced my 20 years old car with a Tesla Model Y and people have already noticed and that’s only a $1k/mth expense or 5% of what I need to spend.
“ Retiring early will give it away as I have no reason to quit because I love my work in cybersecurity and my coworkers. I want to be time rich so I can spend time with my kids who will be teenagers soon.”
Wouldn’t it be better to retire so you can spend more time with your kids instead?
Model Y I still a relatively middle class car. X is not.
What type of net worth are you talking about here? The good thing is that every investor has seen their net worth grow during the pandemic.
I love this article, because I more or less do the exact same thing. I own half of a business that brings in almost a million in cashflow a year, and also do my own consulting work that brings in nearly the same income as the cash flow from the business I own. I’m in my early 30s, and even my own parents think I’m solely middle class. I do have a bit of a “more expensive” car than the average person, but it’s a sports car that looks a bit stripped down – you could convince people you bought it used cheap for way less money. I only live in a relatively small 2 bedroom condo as well.
It does allow me to take nice vacations at my own discretion, as well as go on shared vacations with family and not really expect to have to pay for the trip. My brother on the other hand gloats about his income, and he has extended family constantly pestering him. I actually make about 50 percent more per year than him.
Wow! That is incredible, earning $2 million a year in your 30s. Can you sure what kind of business you were on and what kind of consulting you do? Congrats on crushing it.
Hi Financial Samurai,
That post contained some pretty humorous points… I totally get why someone of a high-income stature would want to convince others that they are of different financial strata than they actually are. I read “The Millionaire Next Door” a year or so ago to gain some perspective as well.
This country may remain polarized for quite some time and no you shouldn’t have to be ostracized for being of Asian descent nor for being self-made and self-taught. From what I gather it’s the ones who achieve wealth and success from the bottom up who are more grounded in reality and willing to show others how to accomplish those same successes as well. You certainly don’t owe anyone anything but you choose to give back via knowledge.
One point that doesn’t seem to get brought up much is how there are lots of people who are misinformed about wealth, money, and finances in general. I can’t begin to tell you how many people regularly take an annual check courtesy of “Uncle Sam”, bi-annual check from”Sallie Mae”, “Navient” or ” Perkins”, etcetera and spend it like there’s no tomorrow. These same people may not have two nickels to rub together the day they get the funds as a result of poor financial decision-making year-round.
I was once one of those people in my earlier years for reasons I care not to disclose at this time but as I changed my perception and gained a new financial education, and overcome some challenging obstacles along the way, I too strive to help others. Most people who “hate the rich, wealthy, and privileged” are simply misinformed. lack proper financial education and have ingrained beliefs that can be generational.
Greetings from Brazil.
My dad runs a business and I work with him. Some of our new clients take a long time to find out I’m the owner’s son because I tell nobody about this and I pretend I’m just an ordinary employee when dealing with them. Sooner or later they always find out the truth, although I don’t know how, gossips everywhere maybe, but the consequences are not bad. I always find it funny when they stop treating me with arrogance and yelling at me on the phone, to treat me very politely all of sudden.
Greetings! Ah, it must be nice to be the boss’s son and get some respect!
I think it would be fun if your coworkers disrespected u all year and didn’t find out for a long time. Meanwhile, you were always kind and continued to work hard. They’d eventually have massive respect for you!
What kind of business?
I understand the concern with being seen as a “privileged other” if ascending the wealth ladder, but I think mindful living has merit here. Buy what YOU want to enjoy mindfully, and be honest with yourself on whether you truly want that thing or there is some external validation involved. If you really want that sports car, a Miata would realistic deliver just as much fun, if not more, as a Porsche 911. If you want a nice house, then live in it and enjoy it instead of broadcasting it over social media.
When it comes to interacting with people, true empathy and connection is vital. Listen carefully, mirror, and really try to understand the other person; you will naturally code-switch and appear more approachable. Even if a less-wealthy person does get some hints that you are very wealthy and successful, they will see you more as a respectful, caring fellow human being and less as a godless, materialistic elite. Plus, you will also feel gratitude for your own success and maybe even provide some wisdom to those struggling!
Could be good! How are you living your life? And do you not feel bad living it up sometimes?
I think stealth wealth is more pertinent for the online world. They are my world is much more judgy. But the off-line world might just judge you behind your back more.
I am an individual learning how to truly live in abundance after many years of scarcity mindset conditioning. So to answer your question, I’m learning how to live it up WITHOUT feeling bad about it! ;)
I can see how steal wealth is more pertinent for the online world. How the off-line world judges me… I cannot let dictate how I feel internally! These are things I’m definitely working on getting better at. Thank you for the insight, Sam!
Loved the article, good reminders for me.
I am a walking enigma I feel like, 2019 was the first year I earned a seven figure income, last year more than doubled again. This year appears to be better earning year than last year already. I know we are very blessed. That being said historically I have been regality frugal, mange to grow my network to around 1mm by the age of 30 having never earned more than 200k a year. My daily dress wear is gym shoes, jeans or shorts and company polo shirt or plain t-shirt.
I am now one of those people who lives a 300-400k a year lifestyle with my wife and have a lot of guilt over it sometimes. We have no kids and live at our business, our employees are our best friends. I’ve bought the nice cars and jewelry over the last few years. I even gave away 5 Rolexes to my staff this year. I put them in nice trucks which are expensive and take them on international vacations. In my industry my sales team is everything and I need to give them what they want or show them what they can earn. I have seen first hand how it motivates them to go back money for us, but it has lead to me developing expensive tastes.
Congrats! Guilt is real as the fortunate often ask, “Why me and not them?”
The best way to eradicate the guilt is to keep helping as many people as possible. I am totally motivated to keep on writing and helping people achieve financial security because of the occassional comment or e-mail I get thanking me for my efforts since 2009. It is the fuel that keeps driving motivation!
The two things to think about are:
* Children
* $10 million
Having children is a life changer. It has made my existence feel much more meaningful. That said, it’s up to everyone to decide whether they really want children or not given there is no return policy!
$10 million is a net worth hurdle that I’ve noticed starts to provide a lot of security.
Best of luck!
Morgan Housel is like a clone of Michael Batnick. They are always the same, white guys who just support each other and nobody else. It’s comical how incestuous the industry is.
Morgan is also a finance writer with no formal finance experience. If he was a woman or minority, he wouldn’t have been able to get a job.
These white guys on Twitter are so self-serving. It’s just marketing.
I’m not sure if the average rich white male realizes how privileged he is. Michael Batnick certainly doesn’t realize it with his commentary, maybe because he is always on Twitter and seeing other rich white males get richer.