There’s a lot of speculation surrounding how to become a millionaire. Do they inherit a massive amount of wealth? Graduate from an Ivy League school? Earn a high salary? What would you say if we told you that an average person with an average income and no inheritance can still become a millionaire?
Back in 1996, a best-selling book hit the shelves called The Millionaire Next Door. The book included the biggest study ever conducted on millionaires at the time. But, it had a problem—it had a relatively small sample size. Fast-forward to 2019, when Chris Hogan recreated the study and included the findings in his best-selling book, Everyday Millionaires. This study collected information from 10,000 participants, making it a much more viable sample size.
Let’s explore the findings of both books to see what millionaires are really made of.
Do Millionaires Inherit Their Wealth?
While 74% of Millennials and 52% of Baby Boomers believe most millionaires inherit their wealth, the data says this is false. Only 21% of millionaires receive any inheritance at all. Just 16% inherit more than $100,000, and a mere 3% inherit $1 million or more. This means about 79% of millionaires are entirely self-made.
Do Millionaires Attend Ivy League Schools?
Some people think you have to graduate from a fancy university to become rich. However, the findings show that 62% of millionaires graduated from public state schools. Nearly one in 10 didn’t even graduate from college! It’s also worth noting that about half of all millionaires earned a B average or less in school.
Do Millionaires Have a High Salary?
It’s easy to assume that if millionaires don’t inherit their wealth and don’t have an “in” from attending an Ivy League school, they must have started their own company, had a leadership role, or earned big bucks in some other way. But this is also false.
Only 15% of millionaires are CEOs, CFOs, COOs, or other members of the “C-suite.” Plus, only 31% of millionaires average a $100,000 annual income. And get this—33% of millionaires never earn a six-figure salary in a single year of their career!
Do Millionaires Control Their Own Destiny?
When asked, “Are you in control of your own destiny?” 97% of the millionaires who participated in the study answered with a resounding “Yes!” This is the mindset that divides millionaires from non-millionaires.
Henry Ford once said, “Whether you think you can or think you can’t—you’re right.” In other words, if you truly want to become a millionaire, you’ll make it happen! The key is to become a smart spender and a successful investor.
We know you have a lot more questions, and we know a lot of time and sacrifice goes into becoming a millionaire. But if you think you have what it takes, Nelson Financial Planning can help you get there. To get in touch with us, please call 407-629-6477 or contact us online. We’re here to start you down the path to becoming a millionaire!