Scroll through social media and it’s easy to think everyone is rich and only getting richer. Your favorite influencers are filming videos in luxury SUVs, your friends are on five-star resorts in Bali, and your uncle just made “a fortune” on a new cryptocurrency.
But much of this perceived wealth could be smoke and mirrors. In fact, some of these peers and influencers could be actively undermining real wealth by trying to maintain the façade.
Detecting and avoiding these deceptive tactics could be an important tool in your personal finance toolkit. Here are five signs someone you know is “fake rich.”
A splashy logo isn’t an asset, but for someone desperate to appear rich it might as well be. From Balenciaga jackets and Chanel belts to Louis Vuitton monogrammed bags, online influencers and social climbers are often covered in conspicuous signals of wealth.
However, many of these mainstream brands are designed to appeal to middle-class buyers. Nearly half of global luxury sales are attributed to this middle-income group, according to Boston Consulting Group data cited by the Wall Street Journal (1).
Genuinely wealthy consumers have increasingly shifted toward lesser-known, exclusive, and niche brands — a movement referred to as “quiet luxury” (2).
Simply put, genuine wealth doesn’t need to announce itself. In fact, very wealthy individuals are often more likely to downplay their affluence. So if you’re tempted to overspend on a specific logo, it may be worth reconsidering.
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There is so much conspicuous consumption and wealth flaunting on social media that it’s leaving many Americans feeling financially left behind.
Gen Z and millennial users are particularly susceptible to this phenomenon, often described as “money dysmorphia,” according to a 2024 Credit Karma report (3).
However, genuinely wealthy families tend to view social media as a potential data privacy and security risk, according to JP Morgan (4). Publicly flaunting wealth online can make individuals more attractive targets for cybercriminals, which is why many high-net-worth individuals choose to keep a low digital profile.
With that in mind, accounts that openly boast about their multiple millions and private jets are more likely promoting questionable products or services than reflecting genuine affluence. The best move is to scroll past.
A general rule of thumb is that expenses related to your vehicle shouldn’t exceed 20% of your monthly take-home pay, according to Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power (5).
In fact, the brands most commonly owned by millionaires in the U.S. are relatively practical names like Toyota, Honda, and Ford, according to Dave Ramsey’s National Study of Millionaires (6).
So if you see someone driving a car priced in the high five or six figures, it may indicate that they’re stretching their budget to project wealth. In many cases, this reflects financial strain rather than lasting prosperity.
Fake wealth often comes with impatience. People trying to project wealth often chase high-risk ideas such as day trading, speculative crypto bets, options trading or dubious “passive income” schemes. The appeal is speed — quick money to support a fast lifestyle.
Long-term wealth, by contrast, is built slowly through compounding, diversification, and consistency. Research shows that frequent traders tend to underperform broad market benchmarks over time, largely due to poor timing, fees and transaction costs.
The irony is clear: in trying to look rich quickly, many end up worse off than if they had simply invested patiently.
Debt can be a signal that you’re trying to bridge the gap between what you can afford and what you want to own.
Excessive use of credit cards, buy-now-pay-later services, and margin debt may indicate that someone is stretching beyond their financial capacity and putting future stability at risk in an attempt to look rich in the present.
This can be an expensive mistake, especially if you’re borrowing money to impress others or buy the kinds of status items described above. Living within your means and limiting unnecessary debt isn’t flashy, but it’s far more sustainable.
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Wall Street Journal (1); New York Time (2); CreditKarma (3); J.P. Morgan (4); CNBC (5); Ramsey Solutions (6).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
