Do you have a “hidden millionaire” around you? 4 characteristics to identify.

When thinking about millionaires, you might envision those driving luxurious cars and flaunting their expensive belongings, or those who have amassed wealth through inheritance or the occasional lucky investment. However, the latest research results reveal a completely different reality.

According to a study called “National Millionaire Research” conducted by the financial consulting firm Ramsey Solutions, many millionaires in the United States have accumulated their wealth through ordinary means, such as investing in 401(k) retirement accounts, without necessarily having exorbitant salaries. It is often the case that while you may see some people who “appear wealthy” in daily life, it’s challenging to discern who among them are actually millionaires.

Most American millionaires are very discreet. Some are naturally low-key individuals, not inclined to show off; some have maintained frugal and modest habits over the years; and others are modest simply because they don’t see anything particularly special about having a million-dollar net worth. In essence, the majority of millionaires are “hidden” around you, and you are unaware of their wealth and happiness.

Although it may not be apparent on the surface, there are still clues to identifying these “hidden millionaires.” Financial expert Rachel Cruze highlighted four common characteristics of “hidden millionaires” in a recent self-produced video.

According to the latest report from global data intelligence payment company PYMNTS Intelligence, 65% of surveyed Americans admit to living paycheck to paycheck, relying on the next paycheck for sustenance. This figure also includes some Americans who live lavishly despite depending on their salaries.

It is certain that these individuals are definitely not “hidden millionaires.” Millionaires succeed in accumulating wealth because they can create spending budgets and live within those means. They do not engage in excessive spending and always maintain a significant financial cushion. Therefore, they are less concerned about falling into financial distress due to unexpected or large expenses as they have already established emergency funds.

Typically, “hidden millionaires” are adept at investing and adhere to long-term investment strategies. They do not become wealthy solely through one genius investment but instead focus on long-term investments, seizing every opportunity to grow their assets. They even actively participate in popular investment avenues like company-sponsored retirement savings plans such as the 401(k). Those who show no interest in investing, fear, or refuse to invest are unlikely to become millionaires.

Many people seek happiness or showcase a certain luxurious status by buying expensive items, but often find no contentment and may even incur debts. On the other hand, many “hidden millionaires” lead a life of “low-key luxury,” refraining from intentional flaunting to pursue inner fulfillment.

Unlike those pursuing a “seemingly wealthy” appearance, many “hidden millionaires” pay more attention to the happiness derived from spending time with loved ones rather than material wealth. Although they may own luxury items, their motivations for purchasing are different.

They prioritize their inner sense of security. They do not opt for cheaper goods to save money as frequent replacements can lead to more wastage in the long run. Instead, they choose high-quality, durable items, including branded products. Despite the common belief that millionaires drive Mercedes-Benz or Ferrari, according to Ramsey Solutions’ research, they are more likely to drive Toyota or Honda vehicles and sometimes opt for reliable second-hand cars.

Most American millionaires are not “miserly.” Whether anonymously or not, these discreet millionaires often donate to charity regularly. According to a study by Rush University Health System, giving to others can ultimately improve one’s quality of life, enhance physical health, and reduce the risk of depression. Generosity can reduce excessive worship of money and bring inner peace.

(This content is for general information reference only and does not have any promotional intent. The Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or other personal finance advice. For specific investment matters, please consult your financial advisor. The Epoch Times does not assume any investment responsibility.)