Most people believe they can become a millionaire, but the truth is only 1 in 32 Americans are millionaires. However, your odds of becoming a millionaire drastically increase to 1 in 7 if you're older than 62 years old. But that takes a lot of time.
According to data compiled by Rich Habits author Thomas Corley, it took the average self-made millionaire 32 years to achieve that. Dive a little deeper — since averages tend to skew things — and 52 percent needed 38 years, 21 percent needed 42 years, and only 4 percent became millionaires in less than 27 years.
Frequently Asked Questions: Can anyone become a millionaire? Yes, becoming a millionaire is achievable for many people, not just through inheritances or winning the lottery but through diligent saving, investing wisely, and managing expenses. It requires time, attention, and financial prudence.
Ninety percent of all millionaires become so through owning real estate.
There are over 22 million millionaires in America, which means that roughly 1 in 15 Americans are millionaires, per the 2024 UBS Global Wealth Report. The report also shared that the millionaire population in the U.S. is expected to grow 16%, to 25.4 million, by 2028.
Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.
Self discipline (i.e., regular investing and living below one's means) are key factors. The average age of millionaires is 57, indicating that, for most people, it takes three or four decades of hard work to accumulate substantial wealth. Research was conducted by the authors, Thomas Stanley, Ph. D., and William D.
At age 35, you would need to save $700 a month to reach $1 million by age 65. Starting to save at age 35 will provide you with more flexibility than at age 50 but can still be difficult considering the many common expenses you'll incur during this life stage.
The average IQ of self-made* millionaires is 118. The average IQ of self-made deca-millionaires (over $10M net worth) is 118. The average IQ of self-made* billionaires is 133. The average IQ of self-made deca-billionaires (over $10B net worth) is 151.
To turn $500,000 into $1,000,000, you need a sound investment strategy. Diversifying your investments across a mix of asset classes like stocks, bonds, and real estate can help.
While becoming a millionaire after 40 requires effort and sacrifice, it's possible in less than a decade through smart budgeting, higher earnings, disciplined saving and calculated risk taking.
If you want to retire by age 67, many financial advisers recommend having a net worth that's five to seven times your annual income by the time you turn 50.
So, let's break it down – how many Americans have a net worth of $1 million or more? According to the 2022 Survey of Consumer Finances by the Federal Reserve, only about 12% of U.S. households have a net worth over $1 million. This means that the vast majority – 88% – are nowhere near that level.
The table below shows the present value (PV) of $10,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $10,000 over 20 years can range from $14,859.47 to $1,900,496.38.
Outside the most expensive parts of the United States, $5,000 per month is typically enough to cover rent or mortgage payments and other lifestyle expenses if you're mindful of your budget.
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
Sudden Wealth Syndrome (SDS) refers to a psychological condition or an identity crisis in individuals who have become suddenly wealthy. Sudden Wealth Syndrome is characterized by isolation from former friends, guilt over their change in circumstances, and extreme fear of losing their money.