Whether it's fashion, real estate, or personal finance, the term 'quiet luxury' is becoming more prevalent. But what exactly does it mean, and why are many Millennials drawn to reflecting this concept in their personal lifestyle choices? Keep reading about how this trend may be reflecting a more practical, sustainable approach to life, and how it relates to personal finance and estate planning.
What is Quiet Luxury?
'Quiet luxury' is a rising trend, particularly among millennials. It places value on subtlety and quality over loudness and flashiness.
The term is highly referenced in the fashion industry, where major brands like The Row or Zara have ditched logos for understated, effortless, and timeless styles. We've seen 'stealth wealth' wardrobes donned by the likes of fashion icons Gwenyth Paltrow, Victoria Beckham, and even the fictional character Shiv Roy of Succession.
Quiet luxury has many synonyms; here are some examples:
Stealth Wealth
The Non-trend Trend
Old Money Aesthetic
Silent Luxury
Easy Elegance
"Quiet luxury is new-age minimalism, with a larger focus on investment pieces and thoughtful shopping," states Elle Magazine on the topic.
Quiet Luxury: An Origin Story
Like any other trend, it's difficult to pinpoint the exact origin of how quiet luxury began. Many believe that a preference for easy elegance began to percolate during the COVID-19 pandemic. Lockdowns brought about a realization that we don't need as many material belongings as we think, including articles of clothing. Since we were at home all day, we began to gravitate towards comfortable and functional clothing without necessarily sacrificing quality.
Years after lockdowns have ceased, it's clear that effortless and comfortable fashion is here to stay.
Looking back, this recent trend shares similarities with the minimalism movement that took place during the Great Recession in the 2010s. Minimalists favor functionality and rationalization, while those who buy into quiet luxury curate a sense of easy elegance and timelessness. Because of this, you could argue that quiet luxury is a bit more elevated than minimalism. This trend has extended far beyond the fashion world and is reflected in many Millennials lifestyle choices.
Quiet Luxury: A Lifestyle
You may be wondering what fashion has to do with personal finance and estate planning.
Fashion has always served as a temperature gauge of the economy and other global events. With a sluggish economy, ever-present inflation, and crushing debt, many Americans are feeling stretched thin. At such a time when much of the nation struggles, loudly luxurious lifestyle choices could feel off-color. Instead, many individuals are opting for choices that are more subdued and sustainable.
The Tesla is a perfect example of quiet luxury outside of the fashion industry. This vehicle model checks many boxes that define luxury, including price point, design, technology, and performance. However, the body and interior are not necessarily the flashy feeling given off by a Ferrari, for instance. Instead, the Tesla embodies a sleek yet subdued design. More importantly, the vehicle is all-electric, leaving a much smaller footprint on the environment in comparison to its gasoline-powered competitors. Tesla buyers are making a conscious effort to select this sustainable option, both for the environment but also perhaps for long-term financial practicality. The Tesla is a great example of a quiet luxury vehicle; its popularity provides some evidence regarding the preferences of drivers today.
In terms of financial planning, quiet luxury captures a strategy of investing wisely and cultivating wealth sustainably, rather than showcasing wealth outwardly. It's all about finding value in less tangible, but more meaningful experiences, such as travel, wellness, or investing in a new skill for professional development. In many ways, quiet luxury redefines the traditional notions of luxury, moving away from the materialistic side of things to a more experiential and holistic approach to living a rich life.
5 Quiet Signs of Millennial Wealth
What does it look like to put quiet luxury into practice today? Quiet luxury is really about making investments for the long-term, rather than spending and displaying money in an outward, near-sighted manner. There's a sense of effortlessness and tact, as well as social consciousness.
The markers for quiet luxury are often less tangible but hold significant value for those who understand and appreciate the nuances. They reflect a well-rounded, mindful approach to wealth accumulation, and an appreciation for quality over quantity.
Here are five signs hinting at someone who might be participating in quiet luxury :
1. Subtle and Quality Pieces: One of the hallmarks of quiet luxury is an appreciation for high-quality items. Instead of flashy logos or trendy items, those who embody quiet luxury tend to invest in well-crafted, timeless pieces that last a lifetime. This can apply to clothing, accessories, or even furniture and artwork.
2. Experiences Over Material Possessions: Those embracing quiet luxury often value experiences over material possessions. They invest their resources in travel, dining, wellness retreats, and other enriching experiences that offer personal growth and lasting memories.
3. Sustainable Living: Sustainable and eco-friendly practices are another sign of quiet luxury. This may include investing in renewable energy, organic food, or ethically made products, which often come at a higher price but reflect a conscious and responsible lifestyle.
4. Philanthropy: Giving back is a common value among those who live a quiet luxury lifestyle. They might choose to give back to the community, supporting causes they believe in and making a difference in the world. If they have the financial means to do so, they might donate their time in the form of volunteerism or pro bono work.
5. Generational Wealth: Those who subscribe to this lifestyle also often prioritize secure and long-term financial planning over immediate, materialistic spending. They understand the value of building a stable financial foundation that not only secures their own future but can also be passed down to future generations. This includes smart investments, real estate purchases, savings for education, and other strategic financial decisions that contribute towards a comfortable lifestyle without the need for extravagance. This focus on creating sustained prosperity, rather than fleeting wealth, echoes the principles of quiet luxury — understated, thoughtful, and enduring.
Financial Planning for Quiet Luxury
Embracing a quiet luxury lifestyle has significant financial implications that center around thoughtfulness, sustainability, and long-term stability. This is characterized by strategic financial planning and intentional spending habits. While traditional luxury might represent impulsive and lavish spending on high-end products and services, quiet luxury emphasizes value, quality, and longevity in the items purchased.
Investments are typically made in high-quality, sustainable goods and experiences that enrich life over time rather than provide instant gratification. This could mean opting for a well-made, timeless piece of furniture over a trendy, disposable item, or investing in a memorable culinary experience instead of a branded handbag.
In terms of savings and investments, those living a quiet luxury lifestyle tend to prioritize financial security and growth. Millennials have experienced two economic recessions in their lifetimes thus far, and because of this, long-term financial stability has emerged as a top priority. They are more likely to invest in real estate, stocks, and bonds that promise steady returns and appreciate in value over time. They also tend to have a keen interest in preserving their wealth for future generations, often setting up trusts or other financial mechanisms to ensure this.
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An important tool that goes hand-in-hand with planning for financial stability and growing generational wealth is an estate plan. This is a legal vehicle that empowers individuals to protect their assets, both for today and tomorrow. The next section will explain how to integrate an estate plan into your overall financial strategy for luxury.
Make Your Estate Plan a Part of Your Quiet Luxury Flex
Creating an estate plan aligns perfectly with the quiet luxury approach to life. An estate plan is a strategic roadmap for managing your wealth and assets in a way that reflects your personal values and objectives. It's a clear demonstration of long-term vision and thoughtful consideration—the two pillars of quiet luxury. Estate planning isn't merely about wealth preservation, it's about creating a sustainable legacy that carries forward your commitment to environmental responsibility, ethical investing, and mindful consumption. By carefully choosing where your assets will go, you can ensure that your wealth continues to support your values long after you're gone. As a part of your quiet luxury lifestyle, an estate plan is not just a financial tool but a testament to your commitment to creating long-term value for generations to come.
How to Make Your Quiet Luxury Estate Plan: 6 Tips
Curious about exactly how to set up your estate plan to reflect your values? Here are our top tips for building your stealth wealth estate plan:
1. Start by Understanding Your Values: The first step in creating an estate plan that reflects your quiet luxury lifestyle is to clearly define your values. What are the ethical, environmental, and social causes that you care about? How do you want your wealth to contribute to these causes?
2. Take an Inventory of Your Assets: Next, take a thorough inventory of your assets. This isn't just about monetary wealth—it's about considering all the resources you have that can be used to support your values. This can include physical assets like property, as well as intangible ones like intellectual property or your professional reputation.
3. Identify Sustainable and Ethical Investments: As a quiet luxury enthusiast, your goal is to create long-lasting value. Therefore, identify investments that are not only financially viable, but also align with your ethical and environmental values. This could include renewable energy projects, organic farming ventures, or companies that prioritize fair trade practices.
4. Choose Beneficiaries Wisely: When determining who will inherit your assets, think about the individuals or organizations that will carry forward your quiet luxury values. This might include family members who share your values, or non-profit organizations that work in areas you care about.
5. Consult with a Professional: Estate planning can be complex, and it's important to get professional advice. An estate planning professional who understands your quiet luxury lifestyle can help you navigate the intricacies of estate planning, ensuring your plan aligns with your values and goals.
6. Regularly Review Your Estate Plan: Finally, remember that an estate plan is not a one-time thing. As your values, assets, and beneficiaries may change over time, it's important to regularly review and update your estate plan to reflect your current quiet luxury lifestyle.
Start Building your Estate Plan with Trust & Will Today!
In this article, we've explored the concept of estate planning from the perspective of quiet luxury, emphasizing the importance of aligning your investments and beneficiaries with your values and regularly reviewing your estate plan.
Trust & Will provides a perfect solution for those interested in setting up an estate plan. As a trusted platform that understands the nuances of your quiet luxury lifestyle, Trust & Will ensures your plan is legally compliant, ethically sound, and custom-tailored to your unique needs.
Moreover, Trust & Will is a pioneer in the space of electronic wills. We offer wills that are electronic from end-to-end, meaning that their digital format never has to be reduced to paper. If you live in a state that recognizes eWills, you can be one of the first wave of Americans creating digital wills right now. We are a carbon-neutral B Corporation that participates in a number of sustainability initiatives, such as Pledge for 1% and planting trees for every estate plan that we create.
You'll feel great knowing that your estate plan is in place, and you'll feel even better knowing that you've partnered with a socially conscious and environmentally responsible platform.
So why wait? Start your journey with Trust & Will today, and build an estate plan that truly reflects your values and aspirations.
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Trust & Will is an online service providing legal forms and information. We are not a law firm and we do not provide legal advice.
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