When Style Meets Substance

As we navigate the complexities of modern life, our approach to wealth and spending often undergoes a significant transformation. At some point, our style shifts from chasing trends to curating timelessness. For those who have reached this milestone, embracing the quiet luxury lifestyle may be the next step.

According to Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit, one of the most telling signs of being ready for quiet luxury is when discretionary spending is no longer about aspiration, but a sense of alignment. In other words, individuals have moved beyond trying to prove their wealth and are now focused on preserving their identity through their spending habits.

A key indicator of this shift is the ability to tap into one’s emergency fund without depleting it. Shirshikov notes that having an emergency fund that remains untouched for 18 to 24 months is a significant accomplishment, especially considering that two in five Americans do not have an emergency fund. This suggests that individuals have automated their investments, maximized their retirement contributions, and are no longer flinching at periodic expenses.

As one progresses on this path, other signs become apparent. Taxes are managed proactively, income is diversified, and estate planning becomes a priority. Shirshikov describes this as having “financial margin” – the room to spend with thought, rather than urgency.

Interestingly, quiet luxury is not about spending more, but rather about spending on fewer, higher-quality items. For instance, investing in two to three perfectly tailored suits may be more cost-effective in the long run than buying 10 cheap suits. This approach is echoed by Andrew Lokenauth, a money expert and owner of Fluent in Finance, who notes that his wealthier clients often adopt this mindset.

Upgrading one’s life using spare money is a hallmark of the quiet luxury lifestyle. This can manifest in various ways, such as:

Investing in quality timepieces, like a luxury watch, which not only serves as a statement piece but also appreciates in value over time

Purchasing a high-end home or condominium, which provides a sense of permanence and security

Acquiring a rare or collectible item, such as art, wine, or a limited-edition car, which can appreciate in value and serve as a conversation starter

Creating a bespoke wardrobe or accessories, like tailored suits, designer handbags, or custom jewelry, which reflects one’s personal style and sophistication

Traveling to exotic destinations or experiencing luxury vacations, which allow individuals to unwind and recharge in style

However, it’s essential to note that upgrading one’s life using spare money requires a thoughtful and intentional approach. It’s not about mindless spending or trying to keep up with the Joneses. Rather, it’s about investing in experiences and items that bring joy, comfort, and a sense of fulfillment.

Ultimately, being quietly rich is not about one’s level of wealth, but rather about being fluent in managing it. It involves recognizing that the most expensive thing in the room may not be the one with the brightest logo, but rather the one that speaks to quality and craftsmanship. This level of financial security and freedom allows individuals to make their own decisions, rather than being driven by old habits, inertia, or market pressures.