4 Subtle Signs Someone Is Fake Rich vs. Actually Rich
We all have that one friend who loves to draw attention to their wealth and their flashy lifestyle. “Have you checked out my Prada bag?” they’ll say, or, “I just had the most exquisite meal!”
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These friends have perfectly curated Instagram feeds and highlight their luxury items like it’s their job. So, you think, they must be loaded, right? Not so fast, say money experts. Not all that glitters is gold.
“I once advised a client who drove a flashy sports car and wore expensive watches yet struggled to qualify for a basic credit card,” said Abid Salahi, finance expert and co-founder of FinlyWealth. “Genuinely rich individuals often prioritize financial security over ostentatious displays of wealth.”
This stark contrast between outward appearance and financial reality is a common red flag for fake wealth. Understanding these nuances, Salahi explained, is crucial in today’s society, where social media often blurs the lines between perception and reality.
“True wealth is about financial security and freedom, not just the outward trappings of success,” added Salahi.
Keep reading for a look at more subtle signs that someone is faking their wealth.
Living Paycheck-to-Paycheck Despite High Income
According to Salahi, the distinctions between fake rich and actually rich individuals are often subtle but telling.
A key sign, he explained, is when someone is spending every dollar earned on maintaining appearances. On the other hand, truly wealthy people try to maintain a modest lifestyle relative to their income to avoid struggling with money.
“Warren Buffett, worth billions, still lives in the same house he bought in 1958 for $31,500,” added Salahi.
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Excessive Brand Consciousness
Another sign?
“Constantly showcasing luxury brands, often with visible logos,” said Salahi. “Truly wealthy people tend to focus on building long-term value rather than short-term appearances.”
In other words: they focus on experiences over material possessions.
“The truly wealthy often value travel, education and personal growth more than accumulating luxury items.”
Lack of Financial Literacy
People who are fake rich are usually unable to discuss investments or financial strategies in depth. They’ll often deflect or exaggerate when asked about their financial situation in order to avoid telling the truth about their overspending.
On the contrary, Salahi noted that actually rich people invest in assets that appreciate over time — such as real estate, businesses and diverse investment portfolios — and tend to be more knowledgeable and willing to discuss them.
“They have comprehensive estate plans, trusts and often engage in philanthropic activities,” said Salahi.
Debt-Fueled Lifestyle
“Those faking wealth often pour money into depreciating assets like luxury cars or designer clothes to create an illusion of affluence,” noted Salahi.
Due to this, they’ll often have a heavy reliance on credit cards or loans to maintain that lavish appearance. High-net-worth individuals, meanwhile, use credit more efficiently.
“While they have access to significant credit, the wealthy tend to use it sparingly and strategically,” he added.
What Does True Wealth Look Like?
As someone who works with high-net-worth individuals daily as the founder and CEO at Reliant Insurance Group, Ben Klesinger has learned that real wealth is usually understated.
He explained that authentic wealth is confident yet humble; it comes from building assets and equity over time through smart investments, not lavish displays of consumer goods.
“The wealthy individuals I serve invest in income-producing real estate, stocks or private businesses,” said Klesinger. “They understand that wealth compounds through ownership and time, not a high income alone.”
He continued, pointing out, “… the wealthy live purposefully below their means. They drive practical vehicles and live in appropriately sized homes. Their spending aligns with experiences, quality goods and relationships — not brands or status.”
He said, “They know real wealth means having the freedom to do what really matters to you.”
The wealthy people Klesinger works with have a growth mindset meaning they constantly learn and improve to expand their knowledge and impact. They give back to causes they care about, recognizing their good fortune and responsibility to others.
“True wealth, I’ve found, is lived with gratitude, purpose and service,” he added. “That is the hallmark of legitimate wealth.”
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This article originally appeared on GOBankingRates.com: 4 Subtle Signs Someone Is Fake Rich vs. Actually Rich
