What is old money and new money - Which is better?

Well, today we are going to discuss a topic on old money and new money. Old money is a form of inheritance or a gift to the next generation.


On the other hand, new money is nascent created wealth. Rather the first generation is rich and wealthy.

Yes, I regard them as nascent wealth because they are not yet completely developed.

They are immature in short.

But not so immature.



Well, we will discuss it in detail further. Stay tuned.

So, today’s post will be something that is going to be unique and very educational. [a value time investment]

The good news is that very few people know about the difference between old money and new money.

And the best part is that after this article you will not be among them. You will be far ahead of them in this regard.

Part of the minority club of financial literacy.

Still with me? Let's begin!


Let's decode OLD MONEY!



Well… old money, as I told you are the one who inherits. They pass on the wealth to the next generation.

Basically, they are rich families who have been rich for several generations.

Specifically, they are families with high social status.

As such, there is no such time period to decide the period of old money. I mean, when to consider the amount as old money!

But yes, in my view it should at least pass to the 2nd generation.

Every old money was once a new money

Obviously, it's logical to say that! John D Rockefeller is a good example to prove this argument.

Such a great gift it is!

It’s a protective net for the next generation.

Well, traditionally old money lives a frugal lifestyle.

They vehemently believe that money is not only theirs - rather, but it is for the whole family & for the upcoming generations.

They do own masterpieces at times. Their sole focus is on building long term assets.

Old money is passionately interested in family education. And it's a good thing also.

There is nothing wrong with that. Education is what makes a person wise. Even I focus on educating myself daily.

Up next they are quite refined people, having humble attitudes and very respectable status in society.

Especially on the investment part, they have completely different and opposite approaches compared to new money.

New money focuses on ‘NOW and old money focuses on the next 10, 20, 30 years or even next generation.

According to a recent survey many actors, athletes, stars who got popular overnight [new money] lose wealth money at the same speed.

The reason why this happens is that they have no plans for investment.

This is where struggle plays a blessing role for the old money.

Struggle has made old money which was once new money

The struggle is important it teaches you valuable life lessons.

It is my personal opinion that old money is the true owner of wealth.

I mean what is the reason? Why they are able to transfer wealth to the next generation? What’s so special about them?

Well, stay tuned I will explain the answer in detail.

Do you come from OLD MONEY, NEW MONEY or NO MONEY” - Ana Monnar

Haha…. That’s the answer to the above question!

Let me explain …

In old days the man who saved money was a miser, nowadays the man who saves money is a wonder!

Isn't it!

In the present world, it's really difficult to find a saver. People are so much attracted to materialistic things that it's super difficult to teach them about money.

No doubt lack of financial education leads to catastrophe.

And this is where the Old Money doesn't make mistakes.

They know the core of managing their wealth.

It's an art!


So, by now I am confident that I am successful enough to explain to you about old money.


Well, let's move ahead.




Well, this is the most recent one and it's very easy to explain too.

Today’s world of social media and the era of the internet has created millions of new money.

Even, I am new money. [but I aspire to convert it into old money]

These are :

rags to riches

Well, for me the people who create new money are quite motivating. Isn’t it!

They come from nowhere to somewhere.

These are entrepreneurs. The internet and social media etc has powered them to some extent. [but beyond that instead]

So, have you ever wondered how money is made?

Well, you need three elements :

    1. Talent

    2. Skills

    3. Abilities

In business, if you take care of thousands, millions will come!

Because I believe that “success begets success”.

Taking risks is innate in them. Risk-taking is their drug and they overdose it.

Successful entrepreneurs, investors, entrepreneur, actors, sportspersons and social media influence-rs comes in this category.

But, in a nutshell


Hmm… controversial.

Let me explain.

Today’s era of internet social media fools the reality of being an entrepreneur.

Entrepreneurship is not only making money. It's about chagrining the world. #innovating

It’s all about making a difference. And the fact is that when you add value you get value.

But… in reality, new money is quite naive.

They don’t know how to manage money better. Well, most of them.

For example, actors/sports persons etc earn millions of dollars. But still in the end they don’t know how to manage money.

As a result, they go bankrupt very soon.

What I am trying to say is that lack of financial education and the sudden influx of money lets them go blind.

My suggestion is, ‘Don’t be naive.’

It’s not that all new money is naive.

For example Warren Buffet. He is also a new money and I am quite confident enough that he is not at all naive.


I have learned a lot from Warren Buffet.

His attitude of keeping patience and analyzing stocks have inspired me to learn more about the stock market.

After all, he is a genius.

Isn’t it?

The most common mentality of new money chaps is to show off.

They believe in the fact that the money they have earned is their money. And it is not necessary to gift it to the next generation.

In my opinion, it’s a wrong attitude.

Money is nothing but a great tool.

You can do several things with money.

Some people say that money can’t buy everything. But poverty can’t either.



Hmm… so finally we have discussed Old money vs New money in detain part-wise.

Now some points to ponder on.

First I will give my opinion in this regard. #OldMoney_vs_NewMoney.

But before, let me explain some FAQ’s :

1. Why does old money hate new money?

There can be two different views on this question.

It can 1st be interpreted in a positive way as to the mindset.

People with old money mindsets are parallel to the mindset of the new money guys.

As I discussed above that old money thinks of long term and new money in the short term.

This is a huge mindset difference and it creates a vacuum at the top.

Counterpart …

On the other hand, we can also assume that old money is jealous of the new money.

How ? hmmm…

Well, as we know by now that old money is a long term process.

It takes years and generations.

So, when old money sees new money succeeding in a very short time then it hurts them. [in my opinion]

What’s your opinion do let me know in the comment box below.

2. Old money vs new money houses?

Well, the basic difference is that old money focuses on being simple.

I mean to say that they are long term mindsets so they have simple homes and lifestyles too.

But in general, we cannot say that there is a huge difference.

But yes… old money does focus on building real estate wealth. According to a report published in 2020, 53% of the old money wealthy individuals have real estate as their favourite investment.

But here is the trick. They are not spending money rather they are investing the capital in real estate.

Because they know the fact that, ‘Land cannot be produced anymore.

Are you getting it?

On the other hand, the new money guys keep on spending their money on useless properties.

Again the word naively.

It suits them better.

But not all new money is naive. Many have evolved out of struggle too. So they know the importance of wealth.

They know how to manage money.

So, in the end, my opinion.

What if I say that I support both.

No no no no… it will not be interesting.


But I support both.

Let me explain.

Well, if I have to decide then, as the quote goes - ‘Every old money was once a new money’. 💸

So, first of all, it is my responsibility to make money and to conserve it.

For initiating this process, I will choose the best way of starting a long term business.

By long term business, I mean that it should be sustainable and should have a competitive advantage.

Then I will also choose investments. It can be anything such as Stocks, Bonds, Real Estate etc.

The next step is to pass it on to the next generation.

But it is also my responsibility to teach my kids about money.

Because lack of financial education will bring your empire to doom.

My upcoming generation should know money management skills. They should have a clear-cut knowledge of how to build assets in long term.

In my opinion. 😇

What’s yours?