The next ‘quiet luxury’ trend has personal finance lessons for everyone

Money talks—or so the saying goes—but wealth seems to whisper.

The term ‘quiet luxury’ is one of the hottest trends on the internet right now, encompassing the idea that the super-rich are eschewing flashy brands and logos—instead opting for lower premiums. that product.

Among the fashion factors that surged forward was a scene from a TV show followingwhere the über-rich characters mock the “funny handbag” brought on one of their dates.

The clip plays on the idea that the rich don’t need handbags – they slip from private jets to chauffeured cars, before a housekeeper opens their front door at the end of the day.

Also, a focus on Gwyneth Paltrow’s wardrobe during his ski test earlier this year, and a renewed focus on British Royal family further strengthening the concept.

The idea is not new – revealed by the founder of Meta, Mark Zuckerberg years ago he wore the same plain shirt every day—but offers new lessons for the public, financial experts say.

Why is your wealth silent?

High-net-worth individuals hide their wealth for a variety of reasons, experts reveal, whether it’s protect their privacy and security or conscious of their financial position compared to others.

David Sadkin, president of Los Angeles-based Bel Air Investment Advisors, said luck many clients choose to “fly under the radar” because it also avoids negative expectations from friends and acquaintances.

“I think this lesson applies to everyone who has money,” Sadkin said. “Theodore Roosevelt said: ‘Speak softly and carry a big stick.’ The ultra-high-net-worth corollary to this would be ‘Don’t be proud and keep your wealth away.’

Sadkin was echoed by Carrie Galloway, global head of the Advice Lab for JP Morgan Private Bank, who said “prudence is an expression of tact” for many of their clients.

“They avoid flaunting their wealth in consideration of others who do not have the same level of financial freedom,” he explained. “In addition, we see a focus on security, especially when clients are traveling. They tend to limit information such as location and itinerary to limit the risk of become a hacker’s prime target.

“Some avoid social media altogether while traveling because cybercriminals can use posts to determine when potential victims are out of town and are less focused on cybersecurity.”

Money keepers

Another reason for not spending on cars, clothes and jewelry is that individuals do not see their wealth as their own—they see themselves as its caretakers.

Eliana Sydes is head of financial life strategy at London-based investment portfolio platform Y TREE, which has £5 billion worth of assets under advice, and says many of her clients see their wealth as their “paper”.

During a video interview with luck, he said that his clients are grateful for their fortunes and therefore “their task is not to run around saying to everyone: ‘Hey, I’m smarter or luckier than you’, it is: ‘ I have a role in society. I think a lot about my role and my presence.’”

Galloway added to luck that self-made individuals especially spend money to reflect their values ​​because there is often a “wariness of wealth that negatively changes people”.

Because of this, there is a level of pride that comes with being “grounded and modest” he said, adding: “There is also a suspicion that when their net worth is known, people may treat them differently, or take advantage of them. They want to be role models for their children and grandchildren and share their values ​​with the next generation. For example, a family that values ​​health and fitness may spend more money on experiences and services that reflect these values and not so much in obvious things like fine jewelry or real estate.”

Establishing a relationship between money and values ​​is an important conversation for every family—regardless of cost—Sydes continued.

“One thing I always talk about with our clients is to try to build a family habit of what’s important in life before using it as money,” he explained.

“Ask the children: ‘What is important to you, as a seven-year-old, or a 10-year-old or a 15-year-old? And now as a family, we decide, is this something we need to fund together?’ So instead of the money just going to personal items, it goes to something that is mentally and emotionally important to the child. Not something that gives them a moment of happiness, but something that helps others. So in this way, you improve this social awareness of money and not only thinking about it is important for them. “

Next generation conversations

The keepers of many fortunes always find theirs thoughts inevitably return to the next generationexperts say, and transparent conversations about making money should be as early as possible.

Pocket money is an easy way to introduce the concept, Sydes said, and consistency is key to landing the lesson.

“If your view is ‘We’ll just pay for the tasks’ that’s random giving [children] money without work weakens that message,” he explained. “If your view is ‘No, I don’t teach [children] to always associate money with an action and then turn around and tell them one day ‘If you don’t do this, I won’t give you your pocket money’ muddies the waters again.”

He adds that having open conversations about wealth — whether it’s a million-dollar fortune or a standard 401k —essential for every family.

“We have to bring our kids up to understand that money is a complicated thing, financing your life is a complicated thing,” Sydes said. “And there are many areas that you have to add to their knowledge as they get older because we don’t teach it in school. You have people coming out of education with little knowledge of what it costs to actually fund your own lifestyle, and unrealistic expectations.

“That, in my point of view, is not a good thing to do to your family—if you don’t prepare them for real adult life. It depends on your child, and how confident you feel about things, but I’m talking about my children’s pensions when they were about eight or nine.

“Now, that seems young but if I put it in context, there were a lot of strikes going on around pensions at the time so there was a reason to have those conversations at that time.”

Experts add that it is often not the second generation of wealthy families who struggle with the concept of value, but those who follow it.

“Wealth is hard to create but easy to destroy,” warned Sadkin. “While our clients and their families need to enjoy their wealth, they also need to think about building their wealth through investing.”



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