Here are the 7 top habits of ‘quietly wealthy’ Americans — how many do you follow?
The millionaire next door simply doesn’t make headlines. He or she has probably built their fortune in a mundane and boring way and lives an equally understated lifestyle.
These are the “stealthy wealthy” and their habits hold powerful lessons for anyone serious about financial freedom. Here are the top seven habits you could replicate to boost your financial position or peace of mind.
The cardinal rule of the stealthy wealthy is to conceal your fortune (or at least not flaunt it) so that you can enjoy it in complete privacy. That means no flashy toys or glamorous status symbols that call your wealth to attention. A quietly rich person isn’t likely to buy a Gucci belt or Birkin handbag. In fact, it’s the middle class consumers, presumably trying to signal their affluence, who account for more than half of all global luxury brand sales, according to the Wall Street Journal.
Put simply, you don’t need to prove your wealth to anyone if you already have plenty of it. Avoid the status symbols and shop based on value and durability instead.
Contrary to the stereotype, millionaires and multimillionaires are not all driving around in Aston Martins or Bugattis. In fact, Dave Ramsey’s survey of millionaires across America found that the top three most popular brands were Toyota, Honda, and Ford.
Picking a practical and relatively inexpensive car is perhaps the best way to retain your fortune rather than burning it off through a sports car’s tailpipe.
Making decisions in the most tax-efficient way is how most wealthy people retain their fortune and continue to expand it. Although your tax situation might be very different from someone with a seven- or eight-figure net worth, that doesn’t mean you can afford to neglect tax planning.
Take a page out of the stealthy wealthy playbook and hire the best accountants and tax planners to help you minimize your liabilities.
Read more: Americans are ‘revenge saving’ to survive — but millions only get a measly 1% on their savings. Here’s how to quickly earn 280% more on your cash
A survey by Northwestern Mutual found that a whopping 84% of wealthy individuals had a financial plan, compared to just 52% for the general public. In other words, rich people are simply more intentional with their saving and spending.