If someone splurges on a gold toilet, you know they’ve got new money. If someone flaunts their designer shopping hauls every other day, it screams “I just got rich!”

That’s the basic gist of spotting “new money” behavior.

However, not all signs are as obvious as a diamond-studded dog collar. In fact, the subtleties of financial faux pas can be so nuanced that it requires a keen eye to pick up on them.

Luckily, some of us have a knack for noticing these cringey spending habits more than others. And often, it’s because we’ve seen these 8 specific patterns repeat themselves.

Now let’s dive in and dissect these “new money” giveaways, shall we?

1) Brand obsession

We’ve all seen it.

Someone comes into a little money and suddenly they’re decked out head-to-toe in Gucci, Louis Vuitton, or whatever other high-end brand they can get their hands on.

It’s like a switch flips in their brain and all they see is name brands. And they don’t just stop at clothes. Oh no, they need the designer handbag, the designer watch, the designer…everything!

However, this obsession with brand names can be quite cringey because it screams “new money”. Rather than being a sign of class or sophistication, it reveals a lack of understanding about the nuances of wealth.

The funny thing is, people who have had money for a long time often prefer quality over big names. They understand that just because something has a famous logo on it doesn’t mean it’s the best.

2) Over-the-top home decor

I’ll never forget my friend Jake.

Jake struck it big with a tech startup a few years back. Before his windfall, his apartment was modest and cozy, but after…well, let’s just say things changed.

He moved into this massive mansion and went absolutely wild with the decor. I’m talking gold-plated everything, enormous chandeliers in every room, and let’s not forget about the full-sized stuffed lion in his living room. I kid you not.

Whenever I visited, I couldn’t help but cringe a bit. It wasn’t that the place wasn’t impressive – it was. But it was also incredibly excessive and screamed “I’m new to this whole wealth thing”.

The thing is, when you’ve been around wealth for a while, you understand that less is more. Elegance often comes from simplicity, not extravagance.

But Jake was just starting his journey with money and, bless him, he was learning as he went along. And let me tell you, it was quite the sight to see.

3) Flaunting wealth on social media

Social media is a world of its own.

People love to show off their vacations, their outfits, their meals, and of course, their wealth. It’s become the norm to see people posting pictures of their new luxury car or their latest shopping spree.

However, those who are new to money often take it a step further. They flood their feeds with images of dollar signs, showing off every single purchase they make.

Interestingly, studies have shown that people who flaunt their wealth are often less satisfied with their lives. It’s as if the constant need to prove their wealth to others is compensating for a lack of fulfillment.

This kind of behavior can be quite cringey because it reveals a lack of understanding about what true wealth means. It’s not just about the possessions you have, but the quality of your life and relationships.

But hey, who can blame them? When you’re new to having money, it’s easy to get caught up in the excitement and want to share it with the world.

4) Excessive tipping

Generosity is a beautiful thing.

But there’s a fine line between being generous and being showy. This line is often blurred for those with “new money”.

Take tipping for example. Leaving a generous tip for great service is one thing. But dropping hundreds or even thousands of dollars just because you can…well, that’s something else entirely.

Don’t get me wrong, I’m sure the people receiving those tips aren’t complaining. But from an outsider’s perspective, it can seem like an obvious attempt to flaunt one’s wealth.

It’s almost as if these big tippers are trying to say, “Look how much money I have! I can afford to give it away!”

In reality, wealth isn’t just about how much you can spend, but how wisely you spend it. Excessive tipping, while generous, may simply be a sign that someone is still adjusting to their newfound wealth.

5) Throwing extravagant parties 

I’ve been to my fair share of parties, but the ones thrown by “new money” folks are something else entirely.

I remember one particular party where the host had hired a famous band to perform, set up a mini theme park in his backyard, and had a fireworks display to rival any national holiday. It was an experience, to say the least.

But as much as I enjoyed the spectacle, I couldn’t help but cringe a little. The extravagance felt less like a celebration and more like a show-offy display of wealth.

I mean, don’t get me wrong, parties are meant to be fun and memorable. But when you’re spending more on one night than most people make in a year, it might be time to reassess.

Who am I to judge? Navigating newfound wealth can be a tricky business. And if throwing extravagant parties is part of that journey, then more power to them!

6) Shunning budgeting

Now, this is where things get interesting.

You’d think that with more money, people would be more careful about how they spend it. But often, the opposite is true.

Those who have recently come into a lot of money tend to throw caution to the wind. They shun budgeting and spend freely, not worrying about where their money goes or how quickly it’s depleting.

It’s as if they believe that because they have a lot of money now, they’ll always have a lot of money. But that’s not always the case. Money can come and go just as quickly if it’s not managed properly.

So while shunning budgeting might seem like a hallmark of wealth, it’s actually more of a red flag signaling “new money”.

Because those who have had wealth for a while know the importance of keeping track of their finances, no matter how much they have.

7) Ignoring investments

Investments are the secret sauce of long-term wealth.

But for those new to the world of money, investments often take a backseat to immediate gratification. They’d rather spend their money on luxury items than invest it for future gains.

It’s not uncommon to see new money folks living a life of luxury but without any substantial investments to their name. They may have a fancy car and a designer wardrobe, but their bank account tells a different story.

This is cringey because it shows a lack of financial literacy. Those who have been wealthy for a while understand that investments are what keep the wealth flowing. It’s not just about how much money you have now, but how much you’ll have in the future.

The ‘new money’ crowd will learn eventually, though. After all, everyone has to start somewhere!

8) Buying happiness

The biggest cringe of all is the belief that money can buy happiness.

Those new to wealth often fall into the trap of thinking that the more they buy, the happier they’ll be. They spend lavishly on things they believe will bring them joy, only to find that the happiness is short-lived.

In reality, true happiness can’t be bought. It comes from within, from meaningful relationships, fulfilling work, and a sense of purpose.

So while it might be tempting to try and buy your way to happiness with your newfound wealth, remember that the best things in life aren’t things at all.

Final thoughts

If you’ve journeyed with me to this point, it’s safe to say that understanding wealth is more than just knowing how to spend money.

New money habits might be cringey, but they also reflect a learning curve. We all stumble and make missteps when we’re navigating unfamiliar territory. And let’s face it, being suddenly wealthy is definitely unfamiliar territory for most of us.

It’s not about judging or mocking these habits. Instead, it’s about recognizing the journey of growth and maturity that comes with wealth. And who knows? Maybe we can even learn a thing or two from these mistakes.

As the great Warren Buffett once said, “Do not save what is left after spending; instead spend what is left after saving.”

This nugget of wisdom holds true whether we’re talking about new money or old.