How I Got Started With This Project
I've spent the last few hours researching the internet for interesting facts about the average millionaire. After reading the book, "The Millionaire Next Door" again recently it spurred me down the google rabbit hole of Millionaire behaviors.
As someone who is promoting wealth and financial education I believe it is important for me to constantly be reviewing the options for new investors on the journey to building wealth.
I started off with a number of questions I wanted answered:
- How Long It Takes The Average Millionaire To Hit Their First Million
- Their Beliefs on Education
- How Do They Spend Their Time
- Growing Up, Health And Relationships
- Where Do They Hold Their Wealth
- How Do They Earn Their Initial Capital
Let's Dive Into the facts!
How Long It Takes The Average Millionaire To Millionaire
• Fidelity’s Millionaire Outlook Survey showed 86% of millionaires said they made their own wealth, they didn’t inherit it
• The Millionaire Next Door cites that the percentage of first generation millionaires is 80 percent, dispelling the idea that most millionaires just inherit their money from a prior generation
• On average, it takes a millionaire 32 years to hit the $1,000,000 mark, dispelling the notion that most get rich quick from a windfall
• In fact, the same study showed that 80 percent of current millionaires didn’t reach $1,000,000 until at least 50 years old
• Also, 87 percent of respondents said they succeeded in making their household more fiscally responsible during last recession
Their Beliefs on Education
• One in three funded their own college education without debt
• Education is important, with 84 percent of millionaires having a college degree according to Spectrum
How Do They Spend Their Time
• Desire matters as Corley found that 53 percent of self-made millionaires were obsessed with become rich before they were rich
• Also, Corley’s research showed that millionaires often pursue multiple streams of income, with 65% having at least three streams, thereby diversifying their dependence on any one stream
• In fact, 88 percent of self-made millionaires read at least 30 minutes every day, focused on self education
• Research conducted by Thomas Corley of Rich Habits, showed that 86 percent of wealthy people who work full time put in 50 hours or more each week at their career
• Further, 67 percent of wealthy people watch less than one hour of television daily, and 63 percent spend less than one hour daily surfing the internet
Growing Up, Health And Relationships
• The study also showed that 78 percent started out as middle class or poor, only 22 percent grew up in the upper class
• Finally, many grew up in disciplined environments, with 76 percent citing that academic achievement was emphasized, and 68 percent saying financial discipline was emphasized
• Millionaires also take good care of their health, with 76 percent exercising 4 days a week
• 86 percent are married, including 65 percent in their first marriage according to US Trust’s Insights on Wealth and Worth
Where Do They Hold Their Wealth
• 62 percent of millionaires rely on a financial planner to help them manage their wealth, according to Fidelity’s Millionaire Outlook study
• Millionaires have significant equity in their homes, as on average, their mortgage is less than one third of their home’s value, according to research performed by Thomas Stanley for his book The Millionaire Next Door.
• Stanley’s research also showed that the average millionaire goes bankrupt 3.5 times before they eventually succeed
How Do They Earn Their Initial Capital
• Only 20 percent are actually retired, meaning 80 percent still work
• Next, 66 percent of millionaires own their own business
• From another Spectrum study, millionaires rated the importance of having a regular saving program at 82%, reflecting their strong belief of its importance to their wealth
• A study by the Harris Group, titled Survey of Affluence and Wealth, showed that respondents save an average of 23 percent of their income
• Also, Corley’s research showed that millionaires often pursue multiple streams of income, with 65 percent having at least three streams, thereby diversifying their dependence on any one stream
Drop A Comment With Your Favorite Fact!
I hope you feel these findings are as interesting and valuable to you as I do. Personally the research was well worth the effort and writing this post is almost as much for me to have the information in a safe place that I can refer back too.
I love that I can use LeoFinance as a place to store my research and as a sounding board from other investors.
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Bookmark, it’s to late at night to read, but definitely want to read it.!
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A million dollars isn't what it used to be. In my town, if you bought an average house, and then bought a second income property, you would be worth a million dollars on that alone once they were paid off. Still a longterm proposition on 30 year mortgages, but, well within most everyones ability.
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@whispertamesth1 you've got the right idea my friend! In my book, "Broke To A Quarter-Million" I talk about the principle of buying 1 house per year for 5 years. That builds your wealth relative to the cost of homes in your market.
Who knows. maybe $5MM will be the new Millionaire after all this money printing. I personally know that having a couple million in assets doesn't make you feel rich at all... It's just enough to have financial freedom, but you would need tens of millions to live that rockstar lifestyle, lol
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