First of all, rich is not what you’d think. First of all, the authors define “millionaire” as a household with a net worth of over a million dollars. But then they further break it down into people who are “wealth accumulators” Basically, take your yearly income, divide by 10, times your age, and that’s what your net worth “should be” if you’re saving and investing at a reasonable rate. People with less than that are “under-accumulators” and people with more than that are “over-accumulators.” Surprisingly, (or not) a large percentage of people in high-earning professions are under-accumulators.
The author’s explanation is that the more you’re required to spend to “keep up appearances” the less you’re able to accumulate wealth. In fact, most of the nation’s wealthy are not the so-called “1 percent”. They are working class or middle class business owners who have been frugal throughout their lives, saved a lot, and invested well. But they nearly always fly under the radar because they don’t “look rich.”. They also budget, almost never splurge on fancy cars, clothes, or jewelry. They are (especially the women) self-taught investment experts, cautious business people and pay little-to-no attention to status.
In fact many people drew a direct link between caring what people thought of your lifestyle and “staying poor.”