5 Fake Signs of Wealth 

Generally, the biggest indicator of wealth is something you'll never see: someone's retirement savings accounts.

As a millionaire now I totally look the same as when I had a negative net worth. Same car, same house, same clothing, same spendings... Maybe one or two more travels, that's it...

The one real indicator of wealth is contentment. I'm not a rich person by most numerical means or measure, but I consider myself an extremely wealthy person because I am satisfied with the rewards bestowed upon me from my hard work, and I have great relationships with those that I love.

If you can stop working and still maintain your current lifestyle until you die, then you are wealthy.

The real indicator of wealth is when you ask for guacamole and the clerk says it costs extra and you say "yea that's fine"

My wife's a nurse and I work in construction my whole life, blue collar. We didn't buy our kids a car for graduation we didn't throw them extravagant sweet 16 party. And we now have eight grandchildren. There's never been a surplus of money but there's nobody wealthier than me and my wife.

I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.

Looking wealthy can also make you a target. Truly wealthy people do not look it, flaunt it, or care what anyone thinks.

Just topped off my truck, four gas cans, and two diesel cans everone was in complete awe!

I get a chuckle or two when I see someone visibly and intentionally flaunt their designer wears/wares. I would make small talk and compliment on it, and it makes their day. Then comes the part what do I do for a living. I simply tell them I'm unemployed. Some feels sympathy for me (whether it's real or not), while others want to hang out with the social upper echelon. I dress like an average person, and unemployed for me means early retired. When you hide the fact that you're affluent, you can learn a lot about others, and the people that you want to hang out with, that likes you for you, not what you have (or don't have).

Eating out at fancy places, taking expensive trips, could be fake indicator of wealth.

If you saw me us you would never think my husband and I are multi millionaires. People we know have lot less dress fancier and drive expensive cars: not us. We are retiring in 2 years with plenty of money to live and travel.

Regarding cars, I always buy them, maintain them, and run them as long as possible. I literally owned and drove a Saturn Ion for 12 years. I often sew people leasing new cars for 2 years, turning them in, and then leasing a newer car for the next 2 years. And they wonder why they're broke???

Wow. This was a great video. I paid off my mortgage and was finally 100% debt free (not even a credit card) and my score went from 840 to 750

Too many people confuse income with wealth. Income can help you increase your wealth, but if you rely on your income to support your lifestyle you will not build wealth. My favorite commercial was for some investment company that shows a guy in a very expensive car rolling up to his huge house and swimming pool and the narrator asks him how he did it all, he comes back with I am in hock up to my eyeballs!

Good health is wealth also!

My wife bought a cardboard cut out of a BMW and put it in the driveway.

I worked with a guy once that had a $1000 pair of boots (this was many years ago) but he'd never wear them except to meetings and such and would never wear them outside. He kept them in a box by his desk and would put them on if he was meeting with some company bigwig. Funny thing is the CEO of the company wore blue jeans and a ratty pair of sneakers. He wasn't impressing anyone or making any points. He didn't last long.

0% debt to income ratio here

Nothing but the best knock-offs money can buy for me: i drive a BNW, have a Robex watch, swing Taylor Mode golf clubs and wear only Hugo Ross and Jojo Arnami suits.

Pay off all your debt and your credit score will drop. That will tell you everything you need to know about credit scores.

I live in a modest home, drive a 17 year old good car, wear nice clothes ( nothing to be proud of) eat good quality food and nobody can tell I’m a millionaire

Great video Erin. I agree with you about the credit score. The factors used to determine it can be deceptive. I have always paid my bills on time since graduating from law school. I had a mid-six figure salary, yet my credit score is only 810. I checked to see why it wasn’t higher. I found out I lost points because I only have 4 open lines of credit: an Apple credit card; a Costco Visa card; and 2 airline credit cards that are staggered 2 weeks apart so I can go back forth between the two and use the float. I haven’t had a car loan since 1982. I haven’t had a mortgage since 2000. I haven’t had student loans since 1990. I haven’t carried a credit card balance in the last 40 years. When I looked at the details of my report it says this area needs work. Having more credit is the last thing I want. Also your comment about high income was spot on. I managed a legal unit made up of 22 attorneys. Everyone had salaries over $200,000 a year; however, several of them had 5 figure credit card balances and could barely scrape by.

Zero debt. Zero mortgages (two paid off houses), no car loans, no credit cards, no nothing. Last two (gently used) cars paid for with cash. Every pot that I piss in belongs to ME! I’m never borrowing another dime in my life if I can help it.

My wife and I purchase items with cash (debit card), we do not need a Credit Score. The only people who think they need a Credit Score are the ones who go into debt and hence avoid building personal wealth.

I made an average of $27,000 per month from my businesses in the US. BUT I live in Dominican Republic $500 per month apartment. I have zero debt. No credit card. Only my apartment and $1000 per month for rental car. I travel freely and eat out everyday. I feel more wealthy then before when I live in the states on $1 million home with $5000 per month mortgage and $2000 per month Mercedes

CC use a 25 day billing cycle to catch you. If you pay the bill off the first of the month eventually they will come a day when you miss it and they hit you with a fee. I’ve found two options. First keep enough cash that you can always pay off the bill. Second ever 2 weeks when I’m paid I pay off the card. You don’t get the full free 30 day loan, but it’s better than paying the late fee.

If you are wealthy you won’t even know you have a credit score. Be an owner not a loaner or borrower.

Very good advice and you brightened my coffee break :)

Definitely true on the credit card one. I’ve gotten into getting, using and maximizing rewards, but that definitely requires some restraint from flashy cards that don’t actually make sense for my spending habits. The Sapphire lounge will still be there later when and if I can afford it.

Interesting , Thank You

Great thumbnail. On the *_Fancy_* topic, I've been almost obsessed with the whole fake wealth hustler world. Some of the social media tricks are painfully obvious. E.g., Posing near a high-end sports car in a photo. Like you said, it's smoke and mirrors.

I told my wife, we're not keeping up with the Jones but now that we are in better place financially, i just want us to be living better than we previously did.

People are so insecure, they need to feel better than other people. The classic for me is airline travel. First they board those that need assistance, next veterans or active duty, then airline card holders, THEN zone 1, 2, 3.... Of course people will say they line up to get on as soon as possible so there's room to stow their carry on. Yeah, maybe, my goal is to be last on board, we're all getting there at the same time. I know my situation and that's more important than proving I'm wealthy, to people I don't know.

Knowing your credit score only proves you either owe money or are looking to borrow money, the opposite of being wealthy.

Thanks for the advice on 401K plans. Also, you look great, whatever diet and exercise regimen you are doing keep it up!

Debt? What is that? We're all financial mutants here on this channel.

It's not about how much money you make it's about how much money you keep.

It is amazing how over the last ten years or so, everyone in America has become a "multimillionaire" and everyone is making six figures plus. Yet, the average household income (with two people earning) is between $45k - $60k annually depending on their location.

A very good post

MY goal is to live entirely on my SS. Almost there, even though I have a 6 figure investment portfolio.

Another great video, Erin. I hope my kids are seeing it.

The opposite of Fake Wealth is Stealth Wealth. And there is zero downside to a Stealth Wealth lifestyle, at least none that I can think of. Erin, a great video idea for for you, hint, hint 😊

Hey erin i hope you can do a video on insurance advice for wealth planning. For example-- Long term care, disability, and umbrella.

Thank!

Excellent comments and, I agree with you 100 percent. Forget about everybody else, the only thing that really counts is, what you decide to do financially for yourself and your family. Also, wealth even as a certain dollar value in your investment, retirement, and bank accounts is very subjective. Prefer to use the term financially comfortable which, for myself is as follows: have a fully pay for home in Southern California, a fully paid for automobile, no student debit, no credit debit, no personal loan debit. Plus, I also have a private sector pension and 401(k) plan, a public sector pension and 457 plan, social security, and personal savings earning 5 percent APY in the bank (smile...smile).

Hi @Erintalksmoney I have a personal question... Do you think your passion for financial freedom or responsible decisions are a way you were born or education impressed on you by parents? I'm now subscribed and love your content!

Great vid and on point. Just found you...think I'll stick around.

I love the thumbnail with the monopoly money 💰

So very true. However, when confronted directly some people justify their spending habits by arguing they'd rather live than survive. I think that's really funny.

Nothing to add here for sure, I've always been heads down focused on my own goals I didn't really have time to look around to see what's fake what's not

My credit score has hovered in the 815 range for the last 3 years and is actually DOWN from 820s. What did I do to get it to go down? I paid off my mortgage and now I have no debt. The little bit of credit I use each month I pay off each month. My income to available credit is "too low" they say. In other words, they want me to take out more debt to raise my credit score. Um, no thanks. Cash only for this guy.

There is a difference between being a net worth millionaire with say a house with 500k of equity and a $600k 401k, and someone that has a million bucks in accessible cash. Just because someone has a net worth of $1 million, doesn’t mean they are wealthy or can afford a lavish lifestyle. There are people who make $70k a year that have a paid off home and a decent 401k over time.

Wealth is invisible. 📈🙃

The wealthiest people I know drive a basic car, live in a humble home in a decent neighborhood, cook most meals at home, and live a healthy lifestyle.

I have lived in the same house for over forty years now. I tell my employees, imagine what you could save if you had no debt, no mortgage and no car payments. I am afraid they just don't get it. I don't care what anybody else has, only what I have. It's not a competition but a goal to strive for.

I think credit score is a joke I have been paying off my credit cards monthly for 30years I have paid off all my loans over the years and have two homes paid off so I have no debt but my score wont go above 825 how does someone with lots of debt get an 845 score doesnt make sense

I get a kick out those who live in cheap apartments, yet drive luxury car.

haha you got me on the credit card one. My next card will be the chase sapphire reserved just because its a metal card and the great sign up bonus. I always wanted to say I own a premium metal credit card. Soooo for me its worth the $95 annually fee lol.

9:09 I ask myself that same question about the Sam's Club Membership.... Now Sam's has a Plus Membership, and Walmart has a membership, out local HyVee Grocery Store has a membership....etc... It seems more and more are having memberships touting some mysterious benefits where the end goal I believe is to gain customer loyalty. This is so sad because stores used to gain customer loyalty by being friendly, giving great service, and trying to go the extra mile for the customers they valued. This means they were giving to you to help establish this relationship, but now we are supposed to be giving to them for the 'right' to be a customer!

True wealth is hidden. It's what you don't see. People can also appear to be very poor but have a large savings in their bank and retirement accounts.

I never tried to raise my credit score but years ago went to buy a car and they told me my credit score was 843. Only had a mortgage at that time, always paid everything on time. My actual gross income was fairly high ($100k in 2006, $160k just before I retired this year)...but my net paycheck was never more than 45% of that, and I still saved from the that.

In France banks cannont lend you anything if your debt to income ration is above 35% (and it was even lower a few years ago). Even if you are pretty wealthy and could live with maybe 10% of your income.

Love the Apple Card. It has built in security features like a rotating CV2 code and no physical numbers that someone can see by looking at the card. I don’t know it was metal until it showed up. It has no fees that I’m aware of so it’s been a favorite card of mine especially since you have the wallet app which makes paying it off the second purchases process.

It's generally more important not to have bad credit overall than it is to have a perfect 850 credit score. Speaking as someone who has been on both ends of this spectrum. And it definitely doesn't say anything about your level of wealth beyond your ability to service the debt you accrued.

I have an 840ish score. Only long term debt 8k mortgage. Just wrote a check for a used car. 21 year old salesman told me he drive a BMW.

I always pay my credit card in full, and then I assume I can’t use it until the new billing cycle starts. Is that correct? So after my payment, I never use my card until the next billing period.

I gave up all my credit cards that had an annual fee - now only have 2 free cards but Atleast with lounge access

Any woman who is not wearing a ring on the left ring finger is 100% available. I love this....

High credit score also helps with insurance rates.

We bought a few Rental Houses a few years ago and I can’t believe what they have done to our Net Worth!

I was going on a trip last Oct that cost over $4000. I got the American Express Delta skymile card w 88,000 bonus miles do I was able to Fly almost Free! Since I was going to spend that money anyway, it made sense. There is $99 annual fee after the 1st yr so I might not renew it?

Additional one: Extravagant vacations/social media flexing. I know some people who have credit cards to the max and yet, 6 times a year are vacationing to elaborate far off places with their family. Others: Fancy cars (average car cost is what 45k now? A fully loaded truck is closing in on 80k, and yet banks/dealerships still require 0% down on a depreciating asset - the car financial crisis is coming).

Great video. It is funny how I see all the things you mentioned every day from people who are pretending to be wealthy. One of the biggest I see is the fancy house. It looks like they have wealth but instead they are just swimming in debt.

About 15 years ago I read news piece that used the term “wealthy” and defined it as a couple that made at least $100k combined.

5:55 that is an M Roadster ... I bought one used in 2019 and it's only gone up in value. Very fun to drive! ...but I make far over 17K and am building wealth. It was the most expensive car I've ever bought at $13,500 It's OK to have one or two indulgences if done responsibly ... I do 95% of any repairs myself

When I used to travel for work I got an airline credit card that had a $90/year fee. But the card gave me 2 free checked bags on every flight. It took me 2 round trips of personal travel that wasn’t reimbursed by my employer a year to justify that expense, which easily happened.

Wealthy people don't finance cars, and for some houses either. Exceptional credit over 830, and could care less, it's never used. In fact I locked my credit at Experian several years ago and forgot about it. Erin, you are so correct, I know people who dress like they live on the streets, and could afford to buy my life's assets with 'walking around money'. One friend called me in 2009 and said- "there's a couple short-sales you were looking for. Told him, I don't have my finances lined up short $95K. "I'll bring it over tonight"... He drives a 1997 Ford pickup like mine.

Just stopped into the gas station and flashed a hundred dollar bill. I'm rich! 😂 If someone is trying to impress you with their wealth....walk away from them....they need your money to sustain.

Biggest signs of fake wealth is people wearing the type of luxury brands that poor people associate with rich people, summarized best by a Casually Explained video: “I could’ve worn a $5000 Gucci suit and people might think I’m cool, but if I was really cool then Gucci would’ve paid me to wear it.”

I like looking broke. Also use coupons and take advantage of 2 for 1 sales at the grocery store. Probably the reason we are retiring in our 50s. We never outspent our income even when we lived at the poverty level when we first started out. Still had money going in savings. As job changes and income went up, we marginally expanded our living but made sure we saved and invested first before having any other fun ( pay yourself first ).

I think in most people's lives there are 2 how large can I live numbers. Earlier in life it is your credit score, get the biggest house you can get a loan on and the most expensive car you qualify for. In retirement your number becomes what percent chance you have of not running out of money before you die. If you can have your same income level for the rest of your life, you can spend at the same level but, if you are thinking of retiring and having less coming in, you need to look at your chance of outliving your money. Even with a 850 credit score going into retirement, you aren't going to be able to borrow more than you can pay back.

I look wealthy in my 21-year-old Toyota and my Costco wardrobe.

Zero debt, minimal bills. Over 50% gross income goes to investments.

Clever thumbnail! Made me giggle a bit.

My wife has one classic designer bag that I splurged on for her 40th birthday. The idea being that she'll use it the rest of her life for special events and occasions. Otherwise, the $20 purse is just fine.😁 I agree about paying off CC's monthly if you can, however, I also view a CC as an emergency fund to be used when your cash reserves are not enough to cover an expense. I don't believe they should be used for regular discretionary expenses.

1) your credit score (at least here in the UK) is not only how well you are repaying debt, but just as much how likely you are to make money for the lender.

Oh here is another one. I got my house with a 640 credit score. Gi bill 3.5 interest. 0 down. And it was 175k in 2021 and now it's 240k depending on who you ask. Credit scores are just a scam to get you to borrow more money. I have a few. But I'd never let my credit situation tell me who I am as a person or my wealth. If your ability to obtain credit is tied into your value. You are in trouble from a personal stand point. I wake up happy everyday.

Last year my credit took a hit because my property taxes changed slightly and therefore my automatic payment was not enough🤦‍♂️Learned my lesson!

I worked for a self made millionaire, he said check the quality of their shoes as people often do not spend any money them in relation to other clothing when trying to show off.

2:45 DTI can lie as well. My DTI isn't great, but that's a function of two things. First, I have a 15-year mortgage, so the monthly payments of nearly $5k include nearly $3000 in principal. Second, I own my own business, so the income that comes to me personally is lowered by expenses in the business. Some of my business expenses are expenses I would incur as an individual (e.g., cell phone, Gigabit internet, etc.), but they're necessary to do my work, so I have the business pay for them. We still save between $36k and $48k for retirement each year, and still have a net worth in the seven figures.

If you have your health, love and a good job, you have something greater than financial wealth.

Cigarettes for a pack a day habit will cost about $3500 a year, two packs $7000. Lung transplant, I can't imagine the cost.

The credit score thing is very true, it's still good to have to use as a tool for finances overall if you plan to leverage debt. But it's really just for that, debt. And OMG haha that CNBC make-it on that actor dude with the red BMW Z4 is hilarious, I came out with the same conclusion.

No matter how many years of a perfect payment history, You’ll never have an 800+ credit score if you’re maxed out like in your example. A large chunk of the score is based on credit utilization (not debt to income). Percentage of outstanding credit card debt to total credit lines. Your score often gets dinged down to 700s by using just 10-20% of your available credit. Maxed out even with all payments on time can easily bring you down to the 600s. Even having a single maxed out card and 4-5 cards with zero balance can still bring your score down to 700s.

I went to a lake resort a week ago. We were watching the Kentucky Derby in a red neck bar, and I felt like I was the poorest dude in the bar. I dont have a big boat, or 100 K pickup truck. I havent had any debt since 1986. I also have an 820 CS. I feel poor compared to the rich guys I know.

Building onto Erin's example, some people with credit scores of 840 can get turned down for loans because their debt-to-income ratio is unreasonable

I have only ever had one credit card. I pay the balance in full each and every month. Any other usage would be a quick way to accumulate debt.

850 doesnt matter 760 will get you the same rates as 800,850.

A fancy home is almost always an indication of wealth, unless they're squatters.