Earning high income is only sometimes distinguished by luxury cars and sophisticated mansions. Some millionaires don’t find a need to show off their wealth with material items and opt to build their wealth slowly and quietly. Known also as the “quiet millionaire,” masters of stealth wealth shy away from flashy lifestyles and chattering about their riches, but there are ways one can detect these private, well-to-do individuals.
Quiet millionaires may not be drawing attention to themselves through big purchases. However, they are the focal point of books such as The Wealthy Barber by David Chilton, a financial planning book about a fictional haircutter who dispenses personal finance advice. The power of Chilton’s book is the relative ease with which readers connect with the character, who is, despite being wealthy, a “regular” guy.
For those ready to “get quiet” and embark on a financially savvy journey, these five less-than-obvious tips can help you learn how to become a master of stealth wealth too, and spot the shy millionaires in the wild.
They Are Financially Literate
While schools have math classes for every grade, the financial knowledge to generate and maintain wealth is often not the focus—this is a gap that quiet millionaires ensure they fill, learning the dangers of debt and virtues of compound interest on their own. Quiet millionaires also focus on how markets work and why hyped investments don’t, dedicated to generating wealth for the long run rather than trying to obtain the quick buck.
After all, according to the Official Data Foundation, the S&P 500 has distributed an average annual return north of 10% over the last twenty years, assuming all dividends were reinvested. With this interest rate, an investment of $100 in 2004 would be worth $716 today.
They Live Frugally and Dress Modestly
The need to head out to the store with designer clothes and flashy accessories isn’t on the quiet millionaire’s mind. A prime example is Warren Buffet, one of the most successful investors of the 20th century, who could easily pull out dollars for the best wine and caviar available anywhere.
However, the philanthropist is famously frugal. He opts for a McDonald’s morning meal, which only sets Buffet back between $2.61 and $3.17. According to the Microsoft founder, couponing is also on Buffet’s financial agenda. He did this when heading to a Hong Kong McDonald’s with fellow billionaire Bill Gates.
They Don’t Talk About Their Wealth
Quiet millionaires aren’t called “quiet” for nothing. These chatter-less individuals value their privacy, keeping their wealth details low. When asked about their financial situation, these individuals aren’t interested in sharing numbers, not only because they desire privacy but because they know that seven-digit conversation can make others uncomfortable, particularly those who struggle to pay the bills or are in poor financial shape.
They Pay for Outstanding Counsel
George Kamel, from the Ramsey Show, stated that quiet millionaires aren’t always deep in financial news, adding: “They just get their info from better sources like financial advisers with a proven track record, lawyers with rare levels of integrity and business mentors who’ve done more than read one case study about T-Mobile in their college entrepreneurship class.”They don’t overextend themselves for money.”
Understanding that the more time you spend pursuing wealth, the less time you have for everything else, some quiet millionaires may steer clear of the “hustle culture” trend, the crushing workload demand that limits downtime/personal time for hobbies, leisure activities, and family and friends. Some quiet millionaires may seek wealth in other places beyond the workplace.
The plus side for those desiring the quiet, wealthy lifestyle is that you don’t have to do anything dramatic – focus on the financial fundamentals to secure a strong foundation.
