What’s the point of having $1M if you can’t spend it? Here’s how middle-class American millionaires enjoy their riches but stay ‘quiet’ at the same time

Financial security

Money doesn’t only buy us things. Money can also buy safety.

The Federal Reserve reports that as of 2022, 37% of U.S. adults could not cover an unplanned $400 expense without landing in debt or having to sell a belonging. But those who are quiet millionaires don’t have to stress out about unplanned expenses, including those significantly larger than $400.

Even in the absence of sudden bills, it’s not uncommon to worry about money. A good 77% of Americans report feeling anxious about their finances, according to a Mind over Money survey by Capital One and The Decision Lab. More than half of the people surveyed said they have trouble controlling their financial worries. Having money in the bank could be the ticket to alleviating these concerns or preventing them altogether.

Now, not everyone can become a millionaire in their lifetime. But you can buy yourself more financial security by building a solid emergency fund to start with. That emergency fund should ideally have enough money to cover three to six months of essential bills. This way, you don’t have to panic the minute you hit a hurdle like an unexpected home repair or layoff.

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Options to pursue the life you want

When you have a lot of money saved, you’re less beholden to a specific job. And this gives you more choices — in your career and in life.

With a large sum of money to fall back on, you can be more selective in your career. If you’re not fulfilled, you can look at making a change. You can also move to an area that’s less accessible to jobs but offers the peace and quiet you want.

That said, even if you’re not a millionaire, you may be able to open up some options by setting priorities. If you’re willing to give up a large house and a nicer car, you may, for example, be able to leave a stressful career in favor of one that’s more enjoyable and less anxiety-inducing.

The ability to stay wealthy by generating passive income

The old saying that it takes money to make money is absolutely true. Once you accumulate $1 million, you have the opportunity to generate a substantial amount of income without lifting a finger with a little luck and access to good financial advice. But if you don’t have a lot of savings, your passive income streams won’t be as lucrative.

Imagine you’re a millionaire and decide you want a safe savings option, like a certificate of deposit (CD), that provides guaranteed income. If you take $100,000 and put it into a 12-month CD paying 4.5%, you will $4,500 over a year without having to do any work. But a $10,000 CD with that same term paying 4.5% is only going to yield $450 for you.

Plus, you can do a lot with your money by putting it into the stock market over time. And while there’s risk involved, when you have a lot of money to begin with, you can afford to take that on.

That isn’t to say that you can’t generate passive income using the resources you have available to you. If you only have $10,000 for a CD, like in the example above, $450 in interest earnings is still far better than none. And the sooner you invest in stocks, even if the initial amount is small, the more you can earn over time. In fact, if you start putting your money to work early enough in life, you might reach millionaire status at some point down the line, even if your initial investments are quite minimal.