If you read Thomas Stanley’s “The Millionaire Next Door“, you learned that the large majority of rich people (those with considerable wealth, not just big incomes) don’t tend to live in rich neighborhoods, drive nice cars and go out for expensive dinners.
They live like regular people. They hold normal jobs. Drive Jeep Cherokees and Toyota Camrys. Live in normal homes.
In fact, most of us probably wouldn’t be able to pick a typical millionaire out of a lineup! That’s because they aren’t living a flashy lifestyle to make people believe they are rich. Instead, they truly are rich – and more times than not, don’t care what other people think.
Caring about people’s opinion probably didn’t make them rich, either.
What can we learn from this knowledge? Don’t envy people who act rich because, in many cases, they aren’t. They might earn high incomes (and that’s great!), but without a substantial savings mechanism in place, the large majority of their wealth simply disappears.
Don’t be fooled by looks, and like we’re taught from a very young age, don’t judge a book by its cover.
Spending money like they spend money won’t get you rich. Or to put it another way: Acting rich doesn’t actually make you rich. That’s what we call the pseudo-affluent.
Okay, got it. Typical millionaires don’t act rich. They ARE rich. And, they walk among us. Live right next to us. How can we tell if our neighbor is a secret millionaire?
Your neighbor might be one of these secret millionaires if:
They have an above average understanding of finances: Your neighbor might talk, but not obsess, about finances and the market.
He or she isn’t concerned about a looming recession, but more calmly chats about general atmosphere data points that would be lost on the average person. I’m talking about keywords like HSA, 529, 401ks, etc. Also, “get rich quick” is never uttered, at least seriously. They probably use an application like Fina for easy financial visibility.
They read: Inside their home, the space is focused on education rather than centered around the boob tube.
I know very few truly wealthy people who can instantly recall the latest game show winner or plot twist in a sitcom. For the record, we don’t have a television in the bedroom and haven’t the foggiest idea about anything that’s on television these days. We don’t even watch the news -> a habit that has made us demonstrably happier.
They cook: Nice kitchens, clean appliances and an organized collection of cooking utensils are all characteristics of wealthy people I know.
They enjoy the art of cooking and entertaining. It is clear that a portion of their high income went toward a capable kitchen, built to enable not only the cooking of food, but conversation, relaxation, and companionship.
They maintain an uncluttered lifestyle: Most rich people I know do not have a lot of “stuff”.
Their homes are not cluttered with landfill-bound things. Everything has a purpose and a place. Their homes may not be spotless, but they are put together in a meaningful and constructive way. Cars, too. Back seats tend not to be used as additional storage, much like their garages. Their garages are used for their cars!
They care about their health: Rich people understand their wealth cannot be enjoyed if their health declines.
Exercise (especially yoga, cycling and running – and yes, even weight lifting) is common, and many believe their health directly enables their ability to enjoy their wealth for as long as possible. In other words, rich people know that it is in their best interest to stay healthy.
They never brag: I’ve found that those who don’t outwardly talk about the things they have are more confident, authentic and successful.
