I’m a Financial Planner: Here’s Why You Can’t Judge Wealth by Appearance

Wealth isn’t about what you can see, but what you can’t. While it’s easy to assume that someone driving a luxury car or wearing designer clothes is financially successful, according to experts, wealth often lies in what isn’t visible — savings, investments and financial security.

GOBankingRates spoke with Dennis Shirshikov, head of growth at GoSummer and professor of finance at City University of New York, as well as Mafe Aclado, finance expert and general manager of Coupon Snake , to discuss why you can’t judge wealth by appearance .

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High-Spending Habits Can Mask Financial Instability

“I’ve seen clients who lived very modestly but had substantial retirement accounts, real estate investments and portfolios,” said Shirshikov.

On the flip side, he said there are individuals who appear wealthy but are actually over-leveraged.

“These are the clients who may have an expensive lifestyle but rely heavily on credit and are often just one financial setback away from a crisis.”

Many of the Wealthiest People Practice ‘Stealth Wealth’

One of the more interesting aspects of working with affluent clients, according to Shirshikov, is discovering how many of them actively downplay their wealth.

“They drive regular cars, live in modest homes and avoid flashy purchases,” he said.

This concept, known as “stealth wealth,” is about avoiding the trappings of luxury and focusing instead on long-term financial goals.

“A prime example is a client who made millions through real estate investments but maintained a frugal lifestyle to ensure they could continue building generational wealth. For them, financial success was about freedom and security, not outward appearances.”

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Financial Success Often Comes From Discipline, Not Appearance

Experts emphasize that real wealth is built through financial discipline — consistently saving, investing and living within your means.

“I’ve noticed that some of the wealthiest individuals I’ve worked with never focused on appearing rich; they were focused on the long game,” Shirshikov said. “One client, who retired early with significant assets, told me they always resisted the pressure to ‘keep up with the Joneses.'”

His advice to younger generations? “Focus on making your money work for you, not on looking like you have more than you do.”

Aclado has observed the same. “The No. 1 reason why you can’t judge wealth by appearance is the fact that when it comes to how to spend their money, people have different priorities. While some may be more interested in keeping up with the Joneses, staying in touch with the latest fashion trend and owning the latest cars, others may have more ambitious desires.”

And for these groups of individuals with intense financial ambitions, she said lifestyle inflation is one of the things they consciously guard against.

“Not because they cannot afford more comfort or luxuries, but because they would rather plant their money in investments that would yield more profits in the future.”

The Wealthy Play the Long Game

According to Aclado, these individuals are also more likely to play the long game; that is, they choose to become strategically patient when it comes to spending and managing their money.

“And they focus on long-term goals like building generational wealth and prioritizing financial sustainability as opposed to seeking instant gratification,” Aclado said.

Living Frugally Isn’t an Attractive Option for Many

“There is also the fact that some people — especially when in their 20s — honestly believe that they still have enough time, and can therefore afford to be financially indulgent,” Aclado said.

She explained that with social media influence, fast fashion and today’s intense spending culture, people’s outward appearance can’t really be trusted as a sign that they are financially successful.

“Because today, living frugally isn’t exactly an attractive option, even when its benefits are clearly visible.”

This article originally appeared on GOBankingRates.com : I’m a Financial Planner: Here’s Why You Can’t Judge Wealth by Appearance