We are mostly taught about visible markers of financial success: mansions, branded wear, the latest car models, and luxurious vacations. However, growing up, we realize that our definition of success changes and adopts a different meaning altogether. True financial success is not measured by any of that but by building and preserving wealth.
The concept of “invisibility” is a powerful and secret strategy, the wealthy adopt, to achieve financial stability, especially in a world that leans heavily on vanity and show business.
What does it mean to be invisible and how you can implement this approach to achieve your financial goals?
“Invisible wealth” refers to assets and financial security that are not immediately apparent or tangible but hold significant value to individuals or societies.
These include elements like environmental assets, social capital, human capital, and health and well-being. Time and freedom are also intangible yet valuable resources that contribute to overall well-being and life satisfaction.
In other avenues, it’s referred to as “delayed gratification” which means prioritizing long-term financial health over short-term displays of affluence.
Forms of Invisible Wealth
a. Social Wealth
Strong social ties offer access to opportunities, resources, and support systems crucial for personal and professional growth and success.
b. Human Capital
Encompasses knowledge, skills, and capabilities possessed by individuals. Education, experience, expertise, and creativity are all forms of human capital that play pivotal roles in both economic productivity and personal growth.
c. Good Health
Physical and mental health empowers individuals to lead fulfilling lives, pursue their aspirations, and make meaningful societal contributions. It can significantly impact the quality of life and productivity. Indeed, as the old adage goes, health is wealth.
d. Environmental Assets
Natural landscapes, waterscapes, and mountains are ideal settings for reflection and feelings of peace and perspective. Access to such can build your mental and spiritual health which cannot be equated to any monetary value. Wealthy people value nature, because they know the crucial role it plays in our mental, spiritual and financial health.
How to Become Financial Invisible
Being invisible means staying below the radar. It means prioritizing long-term financial plans and being concious of your spending habits. Here’s how you can build a firm financial foundation:
i. Live Below Your Means
This is the main strategy you can use to build a solid financial future. Adopting a frugal lifestyle will help you save a lot by avoiding unnecessary expenditures. A modest lifestyle doesn’t draw any attention and removes the pressure to compare yourself with people. They say if you can’t buy it twice, you can’t afford it!
ii. Invest Wisely
Widen your investment portfolio to include bonds, stocks, shares, and real estate. Get professional assistance from a financial guru to get the best advice on long-term investment plans. Don’t put all your eggs in one basket. Spread the risk across different businesses.
iii. Avoid Debt
Debts derail one’s financial track and could reduce your credit score. Draw a plan to clear off any old debts that could hinder your future borrowing power. Unless it’s for investment, avoid getting into debt at all costs.
iv. Invest in Financial Education
You can enroll in short-term courses to boost your financial knowledge. This will help you make informed decisions. You can also read blog articles, listen to podcasts or look up YouTube videos on financial wealth management.
v. Stay Grounded
Even as your wealth grows, avoid the temptation of changing your character. Maintain your core values and remain reasonable as you interact with others. This will not draw any attention to you and you’ll cut down on your spending.
In a world full of vanity, the pressure to spend and show off has made many blow away lifetimes of wealth. The truly wealthy people know and appreciate the need to be invisible as a way of protecting their hard-earned assets and shunning unwanted attention to minimize unnecessary spending. Use invisibility, as the main strategy to create and build generational wealth.
