8 Secrets of the "Invisible Rich"
If you ever wondered whether you could spot the invisible rich, the answer is that it would be very challenging. That’s because the invisible rich are just that—invisible. They are the people you see every day mowing their lawns, standing in line behind you at the grocery store, and riding up the elevator with you at work. They are the people who live modestly and without pretense. The invisible rich are the people who live well within their means despite that big number in their bank account.
Back in 1996, Thomas J. Stanley and William D. Danko released the book, “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy.” These millionaires next door are just like the invisible rich—they are people who don’t look the part. They aren’t the people buying the brand new Lamborghinis or jetting off around the world at a moment’s notice. Stanley and Danko conducted a series of studies to see just how the millionaires next door accumulated their wealth. While there are several key secrets of the invisible rich and the millionaires next door, below are a few of the most common secrets that we can all incorporate into our own lives:
Secret #1: They don’t spend beyond their means. The invisible rich do not stretch financially. They only buy what they can afford and don’t try to keep up with Joneses.
Secret #2: They never stop learning. The invisible rich realize that an investment in their own education is the best investment that they can make. After all, knowledge is power—and greater knowledge can also lead to a bigger paycheck down the road. The invisible rich hop on every opportunity possible to continually learn.
Secret #3: They look at lifetime earning potential when choosing their career. The invisible rich seek out professions that will provide the most financial security and stability.
Secret #4: They save and invest early. The invisible rich understand the value of putting their money to work. Whether through retirement plans such as 401(k)s, IRAs, 529 plans for college or any other kind of savings plan, the invisible rich understand the concept of compounding and how money can grow over time.
Secret #5: They have good insurance coverage. The invisible rich believe that the cost of insurance is worth it in order to protect what they own and their loved ones. Whether it be house insurance or life insurance, the invisible rich place great importance on protecting themselves and their family from unforeseen circumstances.
Secret #6: They’re wise with unexpected cash windfalls. Don’t expect the invisible rich to go out and buy a new yacht with a large inheritance that was just received. Even if the invisible rich hit mega millions, you can expect this group of people to act responsibly with their new found funds.
Secret #7: They hold onto their houses and cars. The invisible rich don’t need the latest and greatest car model, nor do they need to live in a house with a mortgage that they will have to pay for a lifetime. Instead, the invisible rich look for cars with moderate loan payments and homes priced at a number that won’t leave them house poor.
Secret #8: They avoid debt. The invisible rich believe in paying off their debt. They don’t let the balances on their credit card accumulate and prefer to pay bills off as they come in.
If you want to join the ranks of the "invisible rich," now would be a great time to put as many of these secrets to work as you can.