Old Money vs. New Money: What Does It Mean To You? | Wildchildretire

Key Takeaways:

• Old Money families have been rich for generations, mainly coming from inheritance.
• New Money folks like Elon Musk tend to be self-made and more risk-taking.
• Both wealthy families teach valuable lessons such as wealth preservation, innovation, and fundamentals in business growth.

Ever wonder what the difference between old money and new money is?

Don’t worry. We’ll break it down for you.

We’ll explain the differences between old and new money, the lessons learned, and more.

Let’s dive right in.

What Is Old Money?

Scrooge McDuck, Rockefeller’s, Vanderbilt’s, gathering in New York City country clubs, The Great Gatsby type stuff, that’s old money, baby. But what does that really mean? Old money is a term used to describe a wealthy family that has been rich for generations. These families typically have a lot of money saved up, are some wealthiest people, and don’t have to work for a living. These rich people often inherit their money from previous generations.

Some old money families are very private and don’t like to flaunt their great wealth. Others are more public about it and enjoy the finer things in life. Old money families usually have a lot of tradition and history. They may have a family crest or coat of arms. They may have old money names like “Winthrop” or “Vanderbilt.”

Old money families often give their children much freedom when choosing a career. They know their children will never have to worry about money, so they encourage them to pursue their passions.

What Is New Money?

Jeff Bezos, Elon Musk, Donald Trump, that’s what you call new money. They’re all self-made billionaires who have disrupted their respective industries. But what exactly is new money?

New money is simply money that has been recently earned or acquired. It’s the opposite of old money, which is money that has been passed down through generations.

Old money families have always had an advantage over those who have newly acquired their wealth. This is because they’ve had the time to build up a network of influential friends and social connections, and they know the ins and outs of how the system works.

But with new money comes new power. Self-made millionaires and tech billionaires like Bill Gates are shaking up the status quo and proving that anyone can make it to the top, regardless of their background, social perception, or previous family members’ wealth.

So, what is new money? It’s proof that anything is possible. And it’s changing the world as we know it.

Old Money vs New Money: The Differences Easily Explained

Preservation vs Spending

There is a crucial difference in how each group approaches preserving their wealth regarding old money vs. new money people. Old money families have a long-term view and focus on preserving their wealth for future generations. Therefore, they are frugal with their spending and invest in assets that will appreciate over time.

On the other hand, new money families tend to have a more short-term view, and their spending habits are more focused on social status symbols and luxuries. They may also invest in high-risk ventures in the hopes of making a quick return. While old money families may view new money families as reckless, the truth is that both approaches can be successful in building and preserving wealth. It all comes down to your priorities and how you approach risk.

Inheritance vs Self Made

There are two different types of money: old money and new money. Old money is inherited money, while new money is self-made money. Here’s a closer look at the key differences between old and new money.

Old money is typically passed down from generation to generation, while new money is earned through an individual’s hard work and efforts. As a result, old money might come with a sense of entitlement, while new money is often associated with a strong work ethic.

Old money generally has more stability, is less likely to fluctuate, and lasts long, while new money is often more volatile. In addition, there is often a stigma attached to old money, as it is seen as unearned and undeserved. On the other hand, new money is often seen as more merit-based.

High Class vs Young and Care Free

The old white male, top hat, smokers jacket vs Kim Kardashian, flashy dresses, jewelry. That is old money vs new money.

One can be seen as classic and refined, while the other is brash and in your face.

Old-money families about tradition, conservatism, and a certain level of sophistication. It is about an appreciation for the finer things in life and a sense of entitlement. Old money can be about being discreet with your wealth and not flaunting it.

New money is sometimes seen as being about showing off. It can be about being flashy and conspicuous with your wealth. New money folks seem to acquire flashy things such as Lamborghini and jewelry, flaunting their success.

Stealth Wealth vs Flashy

This is a big one. With old money, you could probably tell they come from money if you saw them in the street, but you wouldn’t necessarily know they were billionaires. They might not even have a job; if they did, it would be like being on a board of directors or working in their family business.

New money is different. They are the people who come from regular families and have made their money through things like tech startups, hedge funds, or real estate. They are generally much younger than old money, and their wealth is often more visible. They are the people who buy expensive cars and houses in cash, and they are often the ones flaunting their wealth on social media.

Both Charitable

The good thing about both types of money, old and new, is that they can be quite charitable. For example, old money examples like The Rockefeller family have donated more than $500 million to educational, religious, and scientific causes through the Rockefeller Foundation. In addition, Elon Musk donated $5.7 billion to charitable causes in 2021, landing Musk amongst the country’s most generous philanthropists. So, at the end of the day, both old and new money can be used for good!

Old Money vs New Money: 3 Reasons It’s Important To You

1. Old Money Teaches You How To Sustain Wealth

I have learned much from studying old money folks, particularly the Rockafellas. They preserved their wealth by three main things: Regular family meetings, focus on family history, and charity work.

If you want to get old money and family wealth, you have to start having family meetings. This is where the older generations teach the younger ones about money. They teach them how to save, invest, be frugal, and avoid unnecessary large purchases.

The Rockafellas also focused on their family history. They had homes that were like museums of their family’s old money. This served as a reminder to them of how hard their family worked to get where they are. It also served as a motivator for the new generations to keep the money going.

Finally, old money folks give to charity. They believe that if they have more money, they should help others who don’t have as much. This is a great way to show that you are responsible with your money and care about others.

2. New Money Teaches You Innovation

An edge that new money has on old money is innovation. And this has been a huge motivating factor in my life. 

I wasn’t born into money. I had to pull myself up from nothing, join the military, and get an education. I was the first person in my family to become a millionaire. And I did it all on my own.

And I want more, and when I see folks like Elon Musk, I know it is possible to make new money.

What old money doesn’t have is the willingness to risk everything on a new idea. They are too content with the status quo. But new money, we are hungry. And we will do whatever it takes to get ahead.

Innovation is what separates new money from old money. And it is why new money will always have the upper hand.

3. Both Teach You Fundamentals Of Business Growth

Both old and new money know how to build and maintain businesses. Old money has been doing it for centuries, while new money is relatively new to the game. But both have similar philosophies when it comes to business growth.

The Forbes family, for example, old money, owns Forbes magazine. In 2021 revenue increased 34 percent to $165 million. The family’s focus on long-term growth has paid off.

New money, like Mark Cuban, also knows how to grow businesses. We all know he owns the Dallas Mavericks and AXS TV, but he also owns 12 companies and focuses on their long-term growth.

While old and new money may have different backgrounds, they both teach valuable lessons about business growth.

FAQ

Is new money better than old money?

Regarding new money vs old money, neither are better than one other. Old money and new money both have different philosophies when it comes to business growth.

Does old money look down on new money?

Sometimes, old money may view new money as being too flashy or not having the same level of sophistication. However, old money also recognizes that new money can bring new ideas and energy to old businesses.

What was old money in the 1920s?

During the 1920s, old money families were those who had been wealthy for multiple generations. These families typically had their inherited wealth tied to traditional industries such as banking, manufacturing, and agriculture.

What is the name of the new money?

Some say nouveau riche. Others would argue there is no one name for new money. Instead, new money refers to rich people or families who have recently become wealthy, like Mark Zuckerberg or maybe Paris Hilton.

Are there still old money families?

Yes, there are still old money families today. Examples of old money families like Forbes, Rothschild, and Rockefeller have been old money for centuries.

How do old money people stay rich?

They have values and philosophies that prioritize long-term growth and sustainability. They typically avoid debt, invest in quality assets, and focus on creating multiple income streams for the next generation.

What is a gilded mansion?

A gilded mansion is a large and luxurious home in the united states, Great Britain, or other regions, decorated with expensive materials like gold leaf. Old money families often live in gilded mansions. It’s definitely an upper class, old wealth setup. You will never see middle class folks with these types of properties.

Summary

So there you have it! Old money vs new money in a nutshell. What does this mean for you? Now that you understand the differences, it’s time to go out and make some old money. It won’t be easy, but with hard work and a bit of luck, you can create a lasting legacy for your family. Let us know how you go – we wish you all the best on your journey to wealth!

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• Accumulating Wealth: A Money Building Guide That Actually Works
• How To Raise Money Fast (12 Ways That Actually Work)
• Saving For The Future: 8 Things You Need To Know

Now that you know the difference between old money and new money, will you begin to build a generational wealth of your own? Please, tell us how your journey is going in the comments below!