20 Facts About Millionaires

In this post we will discuss 20 facts about millionaires that you may not know or believe to be true.

1) Only 19% of millionaires received money from a trust fund or estate, and 91% never received any ownership of a family business; a substantial percentage are self-made millionaires. 80% are first generation rich and self-made. Less than 20% inherited significant money (10% or more of their wealth).

2) Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the primary reason for their success.

3) Only 15% of millionaires were in senior leadership roles, such as vice president or CEO, CFO, COO, etc. 93% of millionaires said they achieved their wealth because they worked hard at their business and investing, not from big salaries.

4) It’s the college degree that matters, not where it comes from. Almost two-thirds of millionaires (62%) graduated from public state schools, while only 8% went to a prestigious private school. Most millionaires do have college degrees. 88% have college degrees. Only 33% of U.S. adults have graduated college.

5) Self-employed people with small businesses are four times more likely to be millionaires than those who work for others at jobs. Of non-retired millionaires, two-thirds of them are small business owners.

6) The majority of millionaires believe that financial independence is more important than displaying high social status with material things.

7) About 8.8% of American adults are millionaires. Most of them (95%), have between $1 million and $5 million.

8) After the U.S. at 40% of the world’s millionaires, the next highest 5 countries for millionaires are China 10%, Japan 6%, United Kingdom 5%, Germany 5%, and France 4%. These top six countries represent 70% of the world’s millionaires.

9) The nine cities with the most millionaires, from lowest to highest are Tokyo, New York City, London, Paris, Frankfurt, Beijing, Osaka, Hong Kong, and Shanghai.

10) Millionaires identify as Republican 38%, Democrat 30%, and Independent 29% according to a 2014 survey.

11) Most millionaires don’t drive luxury cars. The top 5 brands driven by millionaire households are Toyota, Ford, Honda, Lexus and Subaru. Their cars are usually not current model year (used) and rarely leased.

12) 86% are married and typically 65% still in their first marriage.

13) 97% are homeowners and have (on average) lived in the same home for more than 20 years.

14) Eight out of ten millionaires (80%) invested in their company’s 401(k) plan.

15) The top five careers for millionaires include engineer, accountant, teacher, management and attorney.

16) Most millionaires who own their own businesses are in dull, low-tech businesses, such as construction trades, auctioneers, farmers, owners of mobile-home parks, pest controller, coin and stamp dealers, etc.

17) On average, they save/invest 20% of their realised household income.

18) The highest concentration of millionaire households live in 1. New Jersey, 2. Maryland, 3. Connecticut, 4. Massachusetts, and 5. Hawaii.

19) There are approximately 22 million households with a net worth of over $1 million, 1.45 million households with a net worth above $10 million, and around 90,000 that have a net worth of at least $50 million.

20) To be in the top 1% of income, you need to earn approximately $600,000 per year, and to be the top 1% in terms of accumulated wealth in net worth you need approximately $11 million.

FAQs: 20 Facts About Millionaires

1. What are some common traits shared by millionaires?

Answer: Common traits include discipline, a strong work ethic, frugality, continuous learning, and the ability to take calculated risks. Many millionaires also emphasize the importance of setting clear financial goals and maintaining a long-term perspective.

2. How do most millionaires earn their wealth?

Answer: Most millionaires earn their wealth through a combination of smart investing, entrepreneurship, and saving. Many also grow their wealth by reinvesting profits, diversifying income streams, and being prudent with expenses.

3. What industries or careers are most common among millionaires?

Answer: Common industries include finance, technology, real estate, and healthcare. Many millionaires are also successful entrepreneurs who have built and scaled their own businesses across various sectors.

4. Do millionaires typically inherit their wealth?

Answer: Contrary to popular belief, many millionaires are self-made. While some inherit wealth, a significant portion of millionaires accumulate their wealth through their own efforts, including starting businesses, investing, and saving diligently.

5. How important is education in becoming a millionaire?

Answer: Education can play a significant role, particularly in providing the skills and knowledge necessary for financial success. However, many millionaires emphasize self-education and continuous learning, regardless of formal education levels.

6. What role does investing play in building wealth?

Answer: Investing is crucial for wealth accumulation. Millionaires often invest in stocks, real estate, and businesses to grow their wealth over time. They focus on long-term investments and compound interest to maximize returns.

7. Are most millionaires frugal with their money?

Answer: Yes, many millionaires are known for being frugal. They prioritize saving and investing over excessive spending, and they often live below their means to build and preserve wealth.

8. How do millionaires approach financial planning?

Answer: Millionaires typically have a well-thought-out financial plan that includes budgeting, investing, tax planning, and setting financial goals. They regularly review and adjust their plans to stay on track toward achieving their objectives.

9. What is the typical net worth of a millionaire?

Answer: A millionaire is someone whose net worth is at least $1 million. However, the net worth of millionaires can vary widely, with some having a net worth just over $1 million, while others may have tens or hundreds of millions.

10. Do millionaires tend to have multiple streams of income?

Answer: Yes, many millionaires have multiple streams of income, such as investments, rental properties, business ownership, and side hustles. Diversifying income sources helps them build and sustain their wealth.

11. What is the average age of a millionaire?

Answer: The average age of a millionaire is typically between 50 and 60 years old. However, with the rise of technology and entrepreneurship, more young millionaires are emerging, particularly in industries like tech.

12. How important is networking in becoming a millionaire?

Answer: Networking is crucial for many millionaires. Building strong professional relationships can lead to business opportunities, mentorship, and access to valuable resources. Networking helps millionaires expand their influence and grow their wealth.

13. Do millionaires focus on building wealth or preserving it?

Answer: Millionaires focus on both building and preserving wealth. While they work hard to grow their assets, they also prioritize protecting their wealth through diversification, risk management, and careful planning.

14. What role does real estate play in millionaire wealth?

Answer: Real estate is a common investment for millionaires. Many build wealth by investing in rental properties, commercial real estate, or land development. Real estate provides a tangible asset that can appreciate over time and generate passive income.

15. Do millionaires prioritize health and wellness?

Answer: Yes, many millionaires recognize the importance of health and wellness as key components of their success. They often invest in maintaining a healthy lifestyle, which helps them stay productive and focused on their financial goals.

16. Are millionaires more likely to start their own businesses?

Answer: Many millionaires are entrepreneurs who have built successful businesses. Starting and growing a business is a common path to wealth, as it allows for greater income potential and financial independence.

17. How do millionaires manage debt?

Answer: Millionaires typically manage debt carefully. They avoid high-interest debt and use leverage strategically, such as taking on debt to invest in income-generating assets like real estate or businesses.

18. What is the importance of giving back among millionaires?

Answer: Many millionaires believe in giving back to their communities through philanthropy, donations, or volunteer work. They often view charitable giving as a way to make a positive impact and leave a lasting legacy.

19. Do millionaires often come from wealthy families?

Answer: While some millionaires come from wealthy families, many are self-made. A significant number of millionaires have built their wealth from the ground up, often starting with little financial support from their families.

20. What is the role of luck in becoming a millionaire?

Answer: While luck can play a role in certain aspects of becoming a millionaire, such as timing and opportunities, most millionaires attribute their success to hard work, determination, and smart decision-making. They create their own “luck” by being prepared and taking advantage of opportunities when they arise.