I never earned enough to build a giant portfolio but I still consider myself wealthy. I’m wealthy in the way that I can fund my early retirement lifestyle without NEEDING to work. That said, I purposely try not to appear wealthy. I’ve never been into status and my lifestyle is exactly aligned with the chosen socioeconomic level that I want to be in. But what do you do when your cloak of stealth wealth malfunctions? I made a small mistake that caused a crack in my financial cloaking. It caused questions within my social circle and within myself.
Encountering Stealth Wealth Malfunctions
Stealth wealth malfunctions don’t have to be anything major to reveal one’s financial standing or challenge one’s chosen perceived standing. Retiring young already provides its share of social mystery. My stealth wealth deviation challenged perceptions and renewed long sidelined questions.
It all started when I did something with nothing but joy in my heart. I decided to knock a longtime item off of my bucket list. Something others might consider silly, but one aligned with one of my lifetime hobbies.
All it took was showing up in a new vehicle.
Yes, I bought a new car. Something that couldn’t be hidden nor did I want to hide it. I’m an automotive enthusiast and my car hobby is a big part of my retirement. I decided it was time to move on from my 21 year old Corvette that I’ve driven for 11 years and went to a new 2019 Jeep Wrangler 2 door Sport that was greatly discounted after the new year. I’ve always wanted to have a Jeep like this since experiences one summer with a CJ5 as a teenager.
It was a “someday I want to” bucket list thing.
To me it’s simple, it’s a convertible sports car that’s fun to drive in any season. Road conditions, what road conditions! Obviously it’s not a sports car like any of my past old Corvettes. But then again my driving desires dropped far below their performance capabilities long ago. Jeeps are common where I live in Colorado. In 2019 our last snow storm was the end of May and the first one in early October. Owning one is hardly a revelation of opulence. Mine’s even a stripped down model with manual windows and locks, just as I wanted.
My automotive choices and hobby are well known and when I pulled up in it at my favorite coffee shop/craft beer purveyor I was stoked to talk about it. It took little time for that to happen because everyone knows that I have been driving the same old cars for years, for some of them even decades.
Where my stealth wealth sin occurred is in the way I answered the question: What’s your payment?
Without thinking I just said, zero, I paid cash. That was instantly met with the snarky reply, it must be nice. Those who were within ear shot quickly jumped into the conversation. Look what Tommy just wrote a check for. When are you buying the next round of drinks for everyone here? They were obviously kidding me, or were they?
I innocently made a simple mindless slip. While I was successfully and happily living my lifestyle using stealth wealth practices, I was unaware that I’m in a perceived income zone with a financial status below the capability of paying cash for a new car.
Whether or not in the overall scheme of things it even matters much to them, it mattered to me.
Surprisingly, I found this unsettling. I’m someone who prides himself on not caring what others think about me. Especially those who flaunt their wealth and title. For them I go out of my way to let them know I dropped out of the rat race and retired early with just enough. Purposely choosing employment liberation over being a financially desperate servant to the system. But with this new slip-up within my chosen socioeconomic level I now felt like I might have messed up and revealed more about me than I comfortably wanted to.
I enjoy being part of the socioeconomic groove I chose and am perceived part of.
People accepted that I have enough to live on a budget and not need to work. I’ve preached my personal finance FIRE beliefs and was considered as being one of them, watching my dollars and making it all work out. But a new question will now have to be answered: Is it acceptable that I can make a cash purchase like this too? In my stealth wealth efforts I missed this aspect. This is the first time since FIRE that I broke character.
What I Did Right
My Chosen Income Zone
We live in a moderate cost area where the median household income is $121K. I am sure that the published figure I’m using here is actually lower than what is current. Still, our overall household budget today comes in less than half this amount. It’s only that high because it includes the $20K a year I pay for our health insurance and associated out of pocket expenses. That is my chosen stealth wealth zone. It matches perfectly with the majority of my social circle. I enjoy frugal living and that includes free activities that most of my social circle are part of. What I did right is choosing an income zone where I never have to fake it to fit in or live the lifestyle I want to live.
Don’t Drive Status Cars
Although I love cars and could have expensive rides, I instead have a few old purpose driven autos. When I say old, my daily driver (weather permitting) is a 1981 Toyota SR5 truck. I bought it in 1993 and my then 12 year old son and I customized it by turning it into a hardtop convertible. All of my cars together, including the Corvette, would add up to be worth $20K.
Although the Jeep is new and raises my overall auto net-worth, it’s hardly unique or a status car and is less expensive than most newer autos on the road.
Dress For The Income Zone I Want To Be Seen In
I prefer casual attire and that fits right in where I’m happiest. No expensive clothes, shoes, cell phones, or watches. I dress like the group I want to be part of and is representative of the way I prefer to live.
Don’t Brag
I never self promote or brag about anything. I stick to my budget living the way I want to live and practice what I preach. I’m humble when talking about finances with anyone. Although my portfolio’s size is nothing like most FIRE aficionados, I keep it private and avoid talking about what I have. I know it’s most likely more than the majority of people in my chosen income zone.
Share and Encourage
I’ve a habit of talking about personal finances and share the common good practices that I’ve used to retire early. I use my early retirement story to encourage others that they could make it their goal too. I also volunteer in the community because I not only want to be part of my chosen social income zone, I really enjoy it and want to give back too.
What I Did Wrong
I Got Too Comfortable With My Financial Freedom and Capability
It’s one thing to live in the perfect stealth wealth income zone that’s aligned with your budget, but another to underestimate onetime visible moves that challenges it. If we were a true $60K a year household living here, could we have been able to do this? Most of my social circle are local folks who fall below the median household income levels. While some who commute into the city for professional occupations earn more, many work and live in town where earning a $40K salary with benefits is a big accomplishment. For most people, paying cash for a brand new car even with a trade-in isn’t possible.
My Answer Was Short and To The Point Without Showing Pain
Although it wasn’t my intention, my answer that I paid cash could be seen as hubris or bragging. In a way, rubbing their nose in it that I can do this, when they probably can’t. My actual answer should have shown a sign of ordinary financial pain or sacrifice in making the decision to pay cash for it. It came across as being easier than it actually was. I was caught off guard and cut off by the snarky reply and the subsequent comments because I hadn’t thought enough about this aspect.
What Now, The Cat’s Out Of The Bag
I’m happy to report that all is well. As the ribbing commenced one of the group came up and put their hand on my shoulder saying, I knew you would buy a Wrangler. You’ve only been asking me questions about mine for over a year. We should be buying your drink because you’re probably broke now.
That snapped me out of my malfunctioning fog. I was able then to say, I took some market profits earlier and was waiting for a great deal. I had just enough cash with my Corvette to pull it off with its discounted price. It’s something from my bucket list and after my recent health scare I had to ask myself, if not now, when? Best of all, it was all true.
All was forgiven. No, not by them, but myself.
In the end they really didn’t care one way or another. It was all me. This malfunction only lasted a short time. But it stuck with me how I felt guilty about how it might have looked or came across. I care about these people and our relationships. I know and will never forget the struggle of trying to get by to make ends meet.
It’s just another mental issue of my early retirement to learn from. I grew up low income, raised a family, made it to engineer, cut living expenses, and invested until I had just enough. Then pulling the plug young while I was still on top and just walked away. Something I’m proud of but realize I had some luck to have pulled off. My brain decided to remind me of that.
In my new ride exuberance I slipped up and was caught off guard. I said something in a way that should have immediately included the additional conversation. It didn’t matter that I stayed within my personal finance rules of which I also eventually included in extended conversations:
- Only buying what I can afford to pay cash for.
- Doing all the research and clearly making sure it’s something that will add happiness to my life.
- Finally, if I’m going to do it, get the best deal I can.
What else can I say about my stealth wealth malfunctions?
I had done such a great job of living within my stealth wealth practices that my stepping out of character with this purchase messed with me. Early retirement continues to be an adventure in more ways than one. Just when you think everything seems figured out, something comes up to surprise you. Even after 10 years in early retirement I’m still learning new things.
