The New Elite

1. The New Elite Are Self-Made Entrepreneurs, Not Inheritors

In fact, over 90 percent of the wealthy created their own wealth, and fewer than 10 percent inherited it.

Debunking myths. Contrary to popular belief, today's wealthy elite overwhelmingly built their own fortunes. This marks a significant shift from previous eras (Agrarian, Industrial, Corporate) where inherited wealth was more common. The current "entrepreneurial era" is defined by individuals who started or were early participants in successful businesses.

Sources of wealth. Approximately two-thirds of the new elite's wealth comes from businesses they founded or worked in from the early stages. Financial and real estate investments contribute, but primarily grow existing wealth rather than creating it initially. Inheritance accounts for a tiny fraction of their assets.

Humble beginnings. The vast majority grew up in middle-class households, with nearly one in ten rising from poverty. Their childhoods were typical, often involving part-time jobs and modest aspirations, far removed from the world of inherited privilege or gated communities.

2. Middle-Class Values and Mind-Sets Persist Despite Wealth

Though i am grateful for the blessings of wealth, it hasn’t changed who i am. my feet are still on the ground. I’m just wearing better shoes.

Humility and hard work. Despite immense financial success, many wealthy individuals struggle to call themselves "successful." They attribute their achievements to middle-class values like hard work, perseverance, integrity, and a little luck, downplaying extraordinary intelligence or connections. This humility stems from their upbringing and the unexpected nature of their wealth.

Core values. Their self-descriptions emphasize pro-social values and entrepreneurial traits:

• Loyal, responsible, caring
• Optimistic, problem-solving, learning-oriented
• Passionate about their work
• Confident and willing to take risks

Identity frozen. Their self-concept often remains rooted in their middle-class origins, largely unaffected by their financial metamorphosis. They often don't "feel wealthy" emotionally, even years after achieving significant net worth, reflecting a disconnect between their financial status and their core identity.

3. Stealth Wealth is the Dominant Lifestyle, Not Conspicuous Consumption

Eighty-nine percent agree, "I believe in ‘stealth wealth’—having money, but keeping it under the radar."

Under the radar. Unlike media portrayals, the vast majority of the wealthy prefer to keep their wealth discreet. Conspicuous consumption is rare and often limited to specific social contexts or transitional life stages. This preference for anonymity is a direct result of their middle-class upbringing and a desire to avoid judgment or unwanted attention.

Blending in. Stealth wealth manifests in everyday life:

• Dressing down in casual attire (khakis, jeans, polo shirts)
• Homes that are spacious but modest, not palatial estates
• Expensive jewelry and high fashion often kept in safes or worn only at specific events
• Private indulgences rather than public displays

Why stealth? Avoiding attention helps maintain privacy and security. It also aligns with their values of modesty and hard work, preventing them from being perceived as arrogant or out of touch. They value the freedom and anonymity that stealth wealth provides.

4. Money Matters: The Wealthy Are Savvy, Value-Focused Shoppers

We estimate that savvy purchasing can increase their household income by over 35 percent, freeing up in excess of $100,000 annually in additional after-tax cash flow in many wealthy households...

Serious business. Money is very important to the wealthy, not taken for granted. Many recall their less affluent days and remain cautious about spending, with a significant portion still concerned about running out of money. They are hands-on with their finances, often managing them like a business.

Intelligent shopping. Their spending is thoughtful and prudent, not impulsive. They shop across all channels, including discount retailers like Costco and Target, and actively seek sales and coupons. Price and value are important considerations, even for high-end purchases.

Beyond possessions. Spending is often directed towards services that make life easier (housecleaning, gardening) and experiences like travel. While they buy high-quality items, the focus is on craftsmanship, quality, and service rather than just brand name or status. The Internet is a crucial tool for research and price comparison.

5. Wealth is a Journey: Maturation Across Three Stages

Wealth, as it turns out, is a journey, not a destination.

Lump-sum arrival. Wealth typically arrives suddenly after years of hard work and modest living, often through an IPO or business sale. This leaves the newly wealthy unprepared for the complexities and challenges of abundance.

The Arc of Maturation:

• Apprentice (0-5 years wealthy): Characterized by caution (financial, interpersonal, moral, shopping). They feel the unreality of wealth, fear losing it, struggle with new social dynamics, worry about losing their values, and are hesitant with luxury purchases, often feeling overwhelmed.
• Journeyman (6-14 years wealthy): Gain experience and confidence. Price sensitivity decreases, investment portfolios diversify, and they begin to explore luxury and status symbols. This stage can involve conspicuous consumption as they compare themselves to wealthier peers.
• Master (15+ years wealthy): Comfortable and confident with wealth. Assets have grown significantly through investments. They have an orderly approach to finances, family, and philanthropy. Middle-class attitudes weaken but often persist. They are sophisticated consumers who appreciate sublime distinctions.

Learning curve. Navigating wealth is a learning process that evolves over time. Each stage brings new challenges and perspectives, shaping how they manage their money, relationships, and sense of self.

6. Five Distinct Lifestyles Define the Flavors of Wealth

If you’re not thinking segmentation, then you’re not thinking.

Beyond demographics. The wealthy population is not monolithic. Statistical analysis reveals five distinct segments based on their psychological reactions to money and lifestyle choices, independent of traditional demographics like age or gender.

The Five Segments:

• Neighbors (18%): Most grounded, comfortable, and discreet. Epitomize stealth wealth and middle-class values. Often small business owners. Least likely to change lifestyle due to money.
• Wrestlers (24%): Conflicted and anxious about wealth. Struggle with paradoxes, fear losing money, and worry about its impact on family. Yo-yo spending and torn between stealth and conspicuous consumption. Youngest segment.
• Mavericks (13%): Independent thinkers, serial entrepreneurs. Highest income, but not defined by wealth. Pursue idiosyncratic passions, disdain pretense, and value substance over status. Least likely to care what others think.
• Directors (30%): Largest segment, view money as serious business. Most financially successful and sophisticated investors. Embrace high standard of living and traditional luxury. Often lead companies and build family dynasties. Most likely Republican.
• Patrons (15%): Most mature segment, focused on philanthropy. Comfortable with wealth, not defined by it. Devote time and money to causes, often through venture philanthropy. Socially connected and least anxious about money's impact. Most likely Democrat.

Tailored approaches. Understanding these segments is crucial for marketers and service providers. Each group has different motivations, preferences, and communication styles, requiring tailored strategies for effective engagement.

7. Raising Wealtherkind: The Challenge of Instilling Values Amid Abundance

Recommend virtue to your children; it alone, not money, can make them happy. I speak from experience.

Parental worries. Wealthy parents share universal concerns for their children but also face unique anxieties, particularly about their kids' work ethic and potential sense of entitlement due to growing up with money. Research suggests affluent teens face higher rates of stress, anxiety, and substance abuse.

Values transmission. Parents emphasize middle-class values like hard work, integrity, and pursuing enjoyment over just making money. They encourage jobs in high school and teach saving, but struggle to fully convey the "middle-class at heart" mind-set, as kids often aspire beyond it.

Teaching money. Shopping becomes a training ground for financial literacy and discerning value. Vacations serve as opportunities for family discussions and planning. While some outsource financial education, many parents ease kids into understanding wealth gradually, often delaying full disclosure of their net worth.

8. Globizens: The World's Wealthy Form a Connected Micro-Community

I am not an athenian or a greek, but a citizen of the world.

Global elite. The explosion of wealth is a global phenomenon, with millionaires and billionaires growing rapidly worldwide. The wealthiest individuals across different countries share striking similarities: self-made entrepreneurs, modest backgrounds, valuing hard work and relationships.

Shared experiences. This global elite increasingly interacts through international travel, second homes abroad, and business connections. English serves as a common language. They share similar aspirations for brands and products, creating a common material culture.

Multinational business. Today's businesses, even smaller ones, are often multinational, leveraging global markets, talent, and efficiencies. This fosters intricate international networks among business owners and executives, deepening their sense of global citizenship and shared identity, sometimes more so than with their less wealthy compatriots.

9. The Plutonomy: A Two-Tiered Economy Emerges

[I]ncreasing income inequality is bad for the economy, bad for crime rates, bad for people’s working lives, bad for infrastructural development, and bad for health—in both the short and long term.

Massive inequality. The U.S. exhibits significant wealth disparity, with the top 5% owning nearly 60% of assets, while the bottom 40% owns less than 1%. This concentration has grown dramatically over recent decades, fueled by technological, financial, and regulatory changes.

Two economies. This inequality has led to the emergence of a two-tiered economy. The "plutonomy economy" caters specifically to the wealthy with high-end goods and services (luxury brands, private jets, concierge medicine), where prices rise faster than inflation. The "everybody else" economy serves the majority, who, while having access to some mass-marketed "luxury" items, have seen much slower income growth.

Social stability. Despite the disparity, the U.S. has avoided significant class conflict or revolution. This is partly due to the cultural tolerance for inequality, the perception of opportunity, and the fact that most of the population can meet basic needs and access some formerly high-end goods through massification of luxury.

Political impact. The wealthy increasingly influence politics, not just through lobbying, but by self-financing campaigns and running for office themselves. This allows them to bypass traditional political structures and directly insert their entrepreneurial mindset into government.

Last updated: June 17, 2025