8 things lower middle class people splurge on thinking it makes them look wealthy that actually does the exact opposite

Ever catch yourself doing something you know doesn't make sense, but you do it anyway?

I'll never forget sitting in my car outside a luxury handbag store, credit card in hand, ready to drop $2,000 on a designer bag I couldn't really afford. This was back when I was drowning in student loans, living paycheck to paycheck despite my analyst salary.

Something inside me believed that bag would make me look successful, like I belonged with the wealthy clients I served at the investment firm.

Thank goodness I came to my senses and drove away. But that moment taught me something crucial about the psychology of spending when you're trying to climb the social ladder.

After nearly two decades analyzing financial decisions for a living, I've seen countless people fall into the same traps I almost did. They splurge on specific things, convinced these purchases broadcast wealth and success. In reality? They often signal the exact opposite to those who truly have money.

If you've ever felt pressure to "fake it till you make it," this one's for you. Let's talk about eight spending habits that might be keeping you stuck in a cycle of financial stress while actually making you look less wealthy, not more.

1) Designer logos everywhere

You know what I'm talking about. The shirts with massive brand names across the chest, bags covered in logos, belts with giant designer buckles.

Here's what I learned from my wealthy clients: truly rich people rarely wear obvious branding. They prefer quality without the advertisement. When someone's covered head to toe in logos, it often screams "I need you to know I can afford this brand" rather than quiet confidence.

I once had a client worth eight figures who wore the same unbranded cashmere sweater to every meeting. Meanwhile, our office assistant was taking out loans for Louis Vuitton bags. Guess who everyone assumed had more money?

The wealthy invest in quality pieces that last, often from brands you've never heard of. They're not interested in being walking billboards.

2) Luxury car leases they can barely afford

A BMW or Mercedes in the driveway doesn't mean what it used to mean.

During my finance days, I reviewed thousands of personal financial statements. The pattern was clear: people stretching themselves thin for luxury car payments were rarely the ones with substantial savings or investments. Meanwhile, our wealthiest clients? They drove paid-off Toyotas and Hondas.

One colleague leased a brand new Audi, paying $800 monthly while living in a studio apartment and eating ramen for dinner. Another colleague, who I later learned had a seven-figure portfolio, drove a ten-year-old Subaru. The Audi driver constantly stressed about money. The Subaru driver retired at 50.

Cars are depreciating assets. The wealthy know this. They see vehicles as tools to get from A to B, not status symbols worth going into debt over.

3) The latest iPhone or tech gadget on release day

Standing in line for the newest phone when your current one works perfectly fine? This might be you.

Rich people use their phones until they break. Seriously. They don't care about having the latest model because they're not trying to impress anyone with their tech. They're too busy using technology to build wealth, not showcase it.

I kept upgrading my phone every year, convinced I needed the best camera, the fastest processor. Then I noticed my wealthiest clients pulling out phones that were three or four generations old. They'd only upgrade when absolutely necessary.

4) Expensive cocktails and bottle service at clubs

That $500 bottle of vodka at the club that costs $40 at the liquor store? Yeah, that's not how wealthy people spend their Friday nights.

Actually wealthy individuals might enjoy nice restaurants, but they're not dropping thousands on bottle service to feel important. They understand the markup is insane and the experience fleeting.

Back in my trying-too-hard phase, I'd order the most expensive wine on the menu, thinking it made me look sophisticated. Later, I learned my richest clients often ordered the house wine or skipped alcohol entirely. They weren't there to impress; they were there to enjoy good food and company.

5) First class flights for short trips

Posting that first-class selfie for a two-hour flight? This might hurt to hear, but truly wealthy people often fly economy for short domestic trips.

They save first class for international flights where the comfort actually matters. Paying triple the price to sit in a slightly bigger seat for 90 minutes? That's not smart money management, and they know it.

I once splurged on first class from New York to Boston, feeling like I'd made it. My CEO at the time? He was three rows behind me in economy, reading a book. He owned a vacation home in the Hamptons but saw no point in wasting money on a short flight.

6) Designer athletic wear for everyday errands

Head-to-toe Lululemon for grocery shopping isn't the flex you think it is.

Wealthy people work out in old t-shirts and basic shorts. They invest in good running shoes because those actually matter for performance, but $150 yoga pants for grabbing coffee? Not their thing.

The gym in my former office building was telling. The junior employees wore matching designer sets. The partners and executives? Random old race t-shirts and basketball shorts from Target. They were there to exercise, not to showcase their athleisure budget.

7) Expensive watches financed through payment plans

If you're making monthly payments on a Rolex, you can't afford a Rolex. Period.

Genuinely wealthy people either buy watches outright as investments (vintage pieces that appreciate) or wear simple, functional timepieces. They definitely don't finance jewelry to look successful.

A former colleague saved for two years to buy an Omega, convinced it would make him look like executive material. He was still passed over for promotion. Why? Because the executives making those decisions cared about his work quality, not his wrist candy. Most of them wore Timex or Apple watches anyway.

8) Fake designer goods

This one's controversial, but hear me out. Carrying a fake designer bag doesn't fool anyone who knows quality. It actually signals that you desperately want to appear wealthy but can't afford the real thing.

People with money would rather carry a nice genuine leather bag from a mid-range brand than a fake Chanel. Authenticity matters more than labels.

I've seen people at networking events with obvious knockoffs, thinking they're fitting in. The subtle smirks from others tell a different story. You're better off with something real within your budget than something fake above it.

Final thoughts

Looking back at that day outside the handbag store, I'm grateful I recognized the trap I was about to walk into. That $2,000 could have gone toward my student loans, which would have actually improved my financial situation instead of just creating an illusion.

Real wealth whispers. It doesn't shout through logos, leases, or payment plans. The truly wealthy people I've known focus on building assets, not collecting status symbols. They understand that looking rich and being rich are often opposite things.

If you recognize yourself in any of these habits, don't beat yourself up. I've been there. The pressure to appear successful, especially when you're working hard to climb the ladder, is real. But consider this: every dollar spent trying to look wealthy is a dollar not spent building actual wealth.

Start small. Skip the logo. Drive the paid-off car with pride. Use your phone until it dies. The money you save can go toward investments, emergency funds, or paying off debt. That's how you build real wealth, not the appearance of it.

Trust me, the confidence that comes from actual financial security beats any designer bag every single time.