Reasons to Keep Your Net Worth Private

Reasons to keep your net worth private

Keeping your net worth private can work to your benefit

Here are some reasons to keep your net worth private. If you are a high net worth individual, or if you just have more than your peers, then you may want to consider keeping matters close to your vest. The top reasons to keep things low key follows.

Jealousy

This is probably the main reason to keep your net worth private. Nothing can tear a family or friendships apart faster than jealousy and resentment. Jealously over money can be crushing to your relationship with others. It may not be fair, and it may not be right, but it is the reality of the world we live in.

I see jealousy of others crop up at work constantly. Anytime someone pulls into the parking lot in a new car the comments start. The people commenting don’t even know the full story, but it doesn’t stop them from creating a narrative. Try to give someone at work financial advice at work if they didn’t ask for it, and the result is usually met with push back and negativity. Even innocent things such as commenting that you are done with your holiday shopping early, and that you paid cash for everything could raise some eyebrows. Suddenly, you are the coworker with money that everyone resents. This may not even be the case, but people will create a reality for you.

Families can be fractured when one sibling is doing well financially and another one isn’t. People can be guilted into helping a struggling family member. Friends may not want to hang out with you if they feel financially inferior to you.

Legal Concerns

If you have money, and people know it, then they may try to get a piece of your pie. Scammers could try to get you to invest in a phony business or some other scheme. The creativity of scammers and con artists are endless. If you have money, there may be people at every turn trying to get it from you. According to CNBC Americans lost over $29 Billion to phone scams in the past year alone.

Humility

With wealth comes responsibility. If you are wealthy, you’ve essentially won the game. How you handle your money says a lot about you.

I’m not suggesting that you live like you are dirt poor. You have worked hard for your wealth, and you should enjoy some of it. If you want a nice house, a nice car, and some other nice possessions, then that is your right. But you don’t have to brag about your wealth. You certainly shouldn’t look down on others around you or think you are better than others. That sort of behavior will get you alienated from friends and family faster than almost anything else.

Be responsible with your wealth. Enjoy your fortune and use some of it to help others along the way. You can enjoy the finer things but still keep things modest and private.

Conclusion

Having wealth can be a wonderful thing. You will be afforded options and choices like never before, and you will have ultimate freedom. But there multiple reasons to keep your net worth private. Whether it be jealousy of others, endless legal concerns, or just your own humility, being flashy with your wealth usually leads to bad things.

Read Also:

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14 Ways To Use Your Wealth To Support Others During This Challenging Time 

How Understanding the Rule of 72 Works Can Build You Wealth

 

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