8 Key Signs of a Quiet Millionaire, According to Rachel Cruze
Written by
Ashley Donohoe
Edited by
Jenna Klaverweiden
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When you think about millionaires, you might picture people who visibly show off their expensive things or who got rich by receiving an inheritance or making one lucky investment.
However, the National Study of Millionaires by Ramsey Solutions showed that millionaires more often built their wealth by more ordinary means, like stashing funds in a 401(k), and many didn’t even earn extremely high salaries. It can even be hard to tell who is rich sometimes.
A recent YouTube video from financial expert Rachel Cruze looked at eight common signs that can help you identify “quiet” millionaires.
Also see four ways to embrace “quiet luxury” without going broke.
Not Living Paycheck to Paycheck
A recent Pymnts Intelligence report found that 65% of respondents relied on their next paycheck. That number also included some Americans who lived paycheck to paycheck but didn’t necessarily struggle to pay their bills.
Quiet millionaires don’t share this problem. Cruze explained that such people thrive because they have a bigger margin thanks to budgeting and not spending excessively.
Not Worrying About Upcoming Expenses
Unlike those living paycheck to paycheck, quiet millionaires are less worried about becoming financially damaged if they face a big expense. They’ve already saved up the money.
“Having an emergency fund for upcoming expenses for the unexpected is key, but then also planning for upcoming expenses ahead of time, being proactive,” Cruze explained.
Investing Money Wisely
According to Cruze, quiet millionaires don’t usually just make one simple decision that makes them rich. Instead, they’re consistent, avoid rushing into decisions and often pick traditional investments, like those in a company 401(k).
Cruze recommended following a similar strategy by consistently saving 15% of your income for retirement once you’ve become debt-free.
Valuing Experiences Over Things
Cruze discussed how people often set themselves up for disappointment by buying stuff in hopes of gaining happiness or some identity. Going into debt from this habit is also a common problem.
However, quiet millionaires tend to focus on the joy they get from experiences with their loved ones rather than material things. While they can still have nice stuff, their motivation is different.
Acting Generously
Whether they do it secretly or not, millionaires often give their money to good causes. According to Cruze, being generous makes your money less of an idol and can bring peace. That’s why she recommended some form of giving regardless of your income level.
“Let that be a rhythm in your life because that will continue to magnify who you are as you start to build wealth,” she said.
According to the Rush University System for Health, giving can improve quality of life, as it can lead to better physical health as well as lower the risk of depression.
Not Being Driven by Status Symbols
Cruze explained that quiet millionaires feel less motivated to accumulate fancy things to impress others. Unlike those seeking to look rich, quiet millionaires feel more secure about themselves.
So while you might imagine a rich person driving a Mercedes-Benz or Ferrari, they’re more likely to have a Toyota or Honda, according to a Ramsey Solutions study that Cruze quoted.
Valuing Quality Over Quantity
While buying cheap items might seem smart, quiet millionaires know it’s better to be patient and prioritize quality for purchases. Ultimately, such items will last longer and lead to less money wasted on replacing things. This practice is wise for building wealth at any stage.
“If you are living below your means and you’re investing in things that will last, be doing that because that’s going to help you not be a victim of constant consumerism,” she said.
Having a Long-Term Financial Plan
According to Cruze, quiet millionaires are proactive with their money and sort out their priorities. They think about what will happen with their money many years ahead and make clear plans to achieve their goals.
As a result, they don’t let sudden emotions drive their financial decisions. Not only does this let them live more peacefully, but it can also prevent wasting money.
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