What is it like to be a millionaire

What Is a Millionaire?

Chip Stapleton is a Series 7 and Series 66 license holder, passed the CFA Level 1 exam, and is a CFA Level 2 candidate. He, and holds a life, accident, and health insurance license in Indiana. He has eights years’ experience in finance, from financial planning and wealth management to corporate finance and FP&A.

Definition and Examples of Millionaires

Despite inflation and subsequently weaker buying power, the U.S. dollar is the international measure for qualifying millionaires.

How Being a Millionaire Works

A person’s net worth is like a summary of the total financial value of their balance sheet. This concept represents a person’s financial assets minus their liabilities. In other words, net worth is what they own minus what they owe.

Categorizing millionaires is not straightforward when factoring in non-liquid assets. The price of consumer goods rises and falls; in an economic slump, it’s unrealistic for assets like real estate and antiques to fetch full price on the market.

Where the Term «Millionaire» Originates

The term «millionaire» comes from French and was first used in 1786. It was used to describe the men who became rich off of speculative investments in North America. By the standards of the 18th century, a millionaire was someone who had amassed an unimaginable amount of wealth.

A Millionaire’s Profile

Also suppose that John Doe has these liabilities:

An Alternative Definition of Millionaire: Liquid Assets

Despite these numbers, some people may reject John’s classification as a millionaire. Using an alternative approach to wealth classification and analysis, they argue that liquid assets (such as his cash, stocks, and mutual funds) are the one true qualification for millionaire status. According to this definition, the value of John’s home, car, and personal belongings (such as antiques) should not count toward his millionaire status because John would be unlikely or unable to liquidate, or sell, all his assets for cash, even if he wanted to do so.

Even if they were to go to market, John’s antiques may fetch unpredictable resale prices, and valuable artwork and collectibles are difficult to sell quickly. Of course, John can have these assets appraised and can use them to finance a big purchase, but he doesn’t have the liquid assets necessary to be called a millionaire by this definition.

Some people would also exclude the value of John’s retirement account from consideration. That’s because those assets are protected from bankruptcy filings. If his retirement savings are left out of the equation, John would not be considered a millionaire.

Multi-Millionaire vs. Millionaire

The difference between a multi-millionaire and a millionaire comes down to the numbers.

The Bottom Line

John Doe may or may not be a millionaire, depending on which definition you use to evaluate his financial situation. However, no matter how you consider his net worth, it’s significantly higher than that of the median American family.

Key Takeaways

Frequently Asked Questions (FAQs)

Who is considered a millionaire?

Is a millionaire considered rich?

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How to Try to Become a Millionaire

Hint: You don’t need a high-paying job or family money

Wondering how to become a millionaire? It may sound impossible to some people, but it doesn’t have to be an out-of-reach pipe dream. With careful planning, patience, and smart savings, you can easily make a million dollars by the time you retire.

Key Takeaways

How to Become a Millionaire

You don’t need a six-figure job or family money to become a millionaire. Instead, you need to start saving early and be mindful of every dollar you spend. Here are some tips for building that million you need to retire in style or to retire early.

1. Start Saving Early

2. Avoid Unnecessary Spending and Debt

Stop buying things you don’t need. Before you tap your card, ask yourself the following:

3. Save 15% of Your Income—or More

The personal savings rate is the percentage of income left over after people spend money and pay taxes. That rate dropped to 7.3% in October 2021, according to data from the Bureau of Economic Analysis (BEA). According to experts, that’s not enough to save for retirement, let alone for anyone trying to become a millionaire.

You should consider putting away at least 20% of your income toward savings, which includes retirement and money you may need for a rainy day.

Exactly how much should you save? Although there’s no correct answer here, most financial planners say that, depending on your age, you should save at least 15% of your annual gross income if you’re aiming for a nest egg for retirement. This figure may sound unattainable for many, but in reality, it’s not. Suppose your employer matches contributions of up to 6% of your salary, you need to save only 9%.

4. Make More Money

Granted, this is easier said than done. If you don’t make enough to stash 15% of your income, it will be difficult to become a millionaire. But you do have a few options available to you, such as:

5. Don’t Give In to Lifestyle Inflation

If you want to become a millionaire, resist the urge to give in to lifestyle inflation. Instead of spending more—just because you can—save and invest more. You’ll reach your financial goals a lot faster.

6. Get Help if You Need It

Planning for retirement can be very stressful, partly because of all the investment options available, not to mention all the unknowns that await you. In fact, as many as 60% of working people said they feel uneasy about retirement planning. It’s no wonder only 25% of Americans say they’re confident that they’re doing what they need to when it comes to retirement planning.

That’s why it’s so important to get help from a professional. Only 29% of Americans reported working with a financial advisor, while 65% said they aren’t getting any financial advice. Unless you’re a financial rock star, it’s worth the money to work with a qualified financial advisor.

An advisor can help you choose investments, set up a budget, and make plans to reach your goals. And once you’re ready to start spending some of that money, they can help you make it last.

Retirement Accounts

Here’s a quick look at how retirement savings accounts can help you reach your goals:

401(k), 403(b), and Other Employer-Sponsored Retirement Plans

These are perhaps the best savings vehicles for most workers. It’s a good idea to take advantage of your company plan if one is available—especially if there’s an employer match.

Traditional and Roth IRAs

Most people with earned income can contribute to a traditional or Roth IRA. The major difference between the two IRAs is when you pay taxes. With traditional IRAs, you can deduct your contributions the year you make them. You pay taxes when you withdraw the money in retirement.

Roth IRAs work differently. You don’t get the upfront tax break. But qualified withdrawals in retirement are tax-free. Those are made when you’re 59½ or older and it’s been at least five years since you first contributed to a Roth.

Simplified Employee Pension (SEP) and SIMPLE IRAs

The SIMPLE IRA is a tax-favored retirement plan that certain small employers (including the self-employed) can set up for the benefit of themselves and their employees.

SEP IRAs can be established by the self-employed and those who have a few employees in a small business. The SEP lets you make contributions to an IRA on behalf of yourself and your employees. Both SEP and SIMPLE IRAs are popular because they’re simple to set up, require little paperwork, and allow investment earnings to grow tax-deferred.

Taxable Brokerage Accounts

Taxable brokerage accounts provide a way to invest additional funds after you max out your retirement accounts. Be aware that you need to pay taxes on the income generated in these accounts in the year you receive it.

How to Make a Million Dollars

If you start early and save regularly, you can make a million dollars by contributing to your retirement savings accounts. To take full advantage, try to contribute the maximum limit.

Let’s take a look at how an average person, let’s call him Joe, can reach this million-dollar goal by the time he retires at age 67. Let’s assume Joe:

We’ll assume his investments have a 7% return.

What Is the Easiest Way to Become a Millionaire?

The easiest way to become a millionaire is to take advantage of compounding by starting to save your money as soon as possible. The earlier you save, the more interest you accumulate. And you’ll earn more money on the interest you earn. You should aim for at least 15% of your income. You can also reach your million-dollar goal by cutting down on unnecessary spending and getting financial advice from a professional. If you’re able to, consider upgrading your work skills or getting a second job.

How Much Do I Need to Invest to Become a Millionaire?

The amount you’ll need to invest to become a millionaire depends on where you are in your life. You can afford to sock away less money when you’re younger because you have more time to accumulate your wealth and you can tolerate more risk. If you put off saving until you’re older, you’ll have to put away more money every month.

How Can I Get Rich With No Money?

Unless you come from a very wealthy family, are expecting to win the lottery, or are on the verge of getting a patent on the next great invention, there’s very little chance that you can become rich by doing nothing. You’ll need discipline, a plan, and, in some cases, good advice from a registered professional who can help push you in the right direction to reaching your goal of becoming a millionaire.

The Bottom Line

Of course, how much you actually earn depends on how well your investments do. At younger ages, you have the time to be a little riskier with your investments and seek out choices that have the potential to get you that 7% return or even more.

That means not putting much of your money in low-earning certificates of deposit (CDs) and money-market investments. Instead, you should consider choices like equities to achieve returns that can outpace inflation—and grow your savings.

The key is to start while you’re young, stay disciplined, and make and keep a long-term financial plan. The ride may be slow, but you’ll be pleased with the long-term results. Making your first million won’t be easy—but it doesn’t need to be impossible.

How to Become a Millionaire

10 Min Read | Apr 13, 2022

So you want to be a millionaire, huh? Awesome! But is it realistic? Don’t you need a high-paying job or a winning lottery ticket?

Well, we’ve got good news for you. You can become a millionaire—and it has nothing to do with your family’s money—or lack of it—or where you got your degree. It has everything to do with you.

8 Tips for Becoming a Millionaire

For The National Study of Millionaires, the largest survey of millionaires ever done, we talked to more than 10,000 millionaires from all across the country to learn more about who they are and what they did to reach millionaire status.

It turns out that most millionaires share similar habits and principles. And that means you can start building those same habits and following those same principles starting today so you can become a millionaire yourself someday! Here’s the list of million-dollar habits:

There’s a whole group of millionaires called Baby Steps Millionaires who’ve lived out these eight principles and Dave Ramsey’s 7 Baby Steps to hit the million-dollar mark.

How much will you need for retirement? Find out with this free tool!

If you follow in their footsteps, you’ll be on your way to becoming a millionaire too! Are you ready?

1. Stay Away From Debt

There’s this idea floating around our culture that you have to take big risks to become wealthy. People think you have to take out business loans and open up lines of credit to get ahead, and they justify it by calling it “leverage”—which is just a fancy word for borrowing money and getting into debt.

But here’s the thing: Debt is quicksand to your financial dreams. Every time you buy something on credit or take out a loan, you dig a deeper hole for yourself to climb out of. That money (plus interest) you’re sending to lenders is money you could be putting toward your future!

Folks who went on to become millionaires figured this out a long time ago. They didn’t want their most valuable wealth-building tool (their income) tied up in stupid payments every month.

Here are the cold, hard facts: 9 out of 10 millionaires have never taken out a business loan, and 73% of millionaires have never carried a credit card balance in their entire life. 1 They’ll be the first to tell you that one of the main ways to reach the million-dollar mark is to avoid debt like the plague.

The bottom line is this: If you want to become a millionaire, avoid debt at all costs. And if you already have some, get rid of it and pay it off (Baby Step 2) as soon as possible. The only “good debt” is no debt!

2. Invest Early and Consistently

The earlier you start investing, the more likely you are to become a millionaire. It’s that simple (thanks, compound interest)!

So, start investing the minute you’re debt-free (it’s okay if you’ve still got a mortgage) and have a fully funded emergency fund in place. No exceptions!

3. Make Savings a Priority

If you’ve already started investing (Baby Step 4), way to go! When it comes to saving for retirement, the goal is to save 15% of your income into tax-advantaged retirement accounts like a 401(k) and Roth IRA. Not 5%. Not 10%. Fifteen percent!

Why? Because if you want to become a millionaire, how much money you invest is just as important as the actual act of investing. We found that it took Baby Steps Millionaires, who invested 15% of their income toward retirement, about 20 years or less to reach millionaire status from the beginning of their journey! Here’s how things would shake out:

Our research found that 70% of millionaires saved more than 10% of their income throughout their working years. 3 They saved, and they saved a lot! How were they able to save so much? That’s where the next two principles come into play.

4. Increase Your Income to Reach Your Goal Faster

You don’t need a huge salary to become a millionaire. After all, one-third of all millionaires never made a six-figure salary in a single working year! 4 But if you want to reach millionaire status a little bit faster, then the best way to do that is to boost your income. The more money you make, the more you can invest!

How do you do that? You can ask for a raise (gulp) or find a new job that pays more. You can start that side hustle you’ve always dreamed about or sell some stuff that’s been collecting dust in your basement. You can go back to school (without taking on student loans!) or get training to increase your skills and earning potential.

One of the defining characteristics of millionaires is that they take personal responsibility for their lives. In other words, they own it. Virtually all millionaires (97%) believe they control their own destiny. 5 They don’t just sit around and hope that things will magically change—they go out and do something about it.

So what are you waiting for? If you know you need to raise your income, go out there and do something about it!

5. Cut Unnecessary Expenses

As you work toward becoming a millionaire, make sure you’re spending your money on purpose—and with a purpose.

More than 9 out of 10 millionaires say they live on less than they make and stick to the budgets they create each month. And get this: We found that 93% of millionaires still use coupons when they shop! 6

So despite what you might have seen on some television show or heard on cable news, the average millionaire lives a modest life. They don’t waste their money on junk and things they can’t afford. Instead, they find ways to cut spending so they can save more for the future. Small sacrifices can lead to big results over time!

So, take some time to go over your expenses and compare budgets from previous months. Where are you leaking money? Which budget categories seem to creep up over time? Here are a few places to look:

Just remember, whatever sacrifices you make now—big or small—will go a long way to help you reach your dreams of becoming a millionaire. And you know what? Once you’re a millionaire (yep, you’re going to be!), you might just stick with the money-saving habits you started.

6. Keep Your Millionaire Goal Front and Center

The steps to becoming a millionaire are the opposite of how most people act, which means you’ll see friends and family going places, doing things, and buying stuff. And if you spend too much time focusing on what they’re doing, you could be in big trouble with your own money.

Almost half (49%) of millennials say they’re influenced by social media to spend their money. 7 That means they’re letting someone else’s highlight reel on their social media feed decide how they spend their own money. No thanks! Don’t get sucked into comparison culture. Fight tooth and nail against it. Let’s just be real here: It’s time to stop buying stuff we can’t afford to impress people we don’t even really like!

Millionaires didn’t get where they are by playing the comparison game. Nope. Only 7% of them feel any pressure to keep up with their friends and families when it comes to spending. 8 Instead, they stay focused on their own goals and don’t worry about what other people are thinking or doing.

Instead of obsessing over what you don’t have, focus on stuff that really matters —family and friends, your church, your career goals, the legacy you’ll leave your children. Those will bring you much greater joy than a brand-new car or a destination vacation ever could.

7. Work With an Investment Professional

Here’s a question for you: If you needed to have heart surgery, would you try to operate on yourself? Of course not. That would be dumb! You’d look for the best heart surgeon you could find.

And when it comes to something as important as your retirement future, wouldn’t you want to work with someone who knows what they’re doing? Working with an investment professional is one of the smartest things you can do for your money.

In fact, 68% of millionaires said they worked with a financial advisor to help them reach their net worth. 9 You see? Building wealth isn’t a solo sport—and it’s wise to seek guidance from folks who know what they’re doing!

If you don’t have a pro yet, check out our SmartVestor program. It’s easy to use, and it’ll help you find investment pros in your area for free!

8. Put Your Plan on Repeat

To become a millionaire, you need to let time and compound interest work their magic. It’s a beautiful thing. And if you want to hit your big financial goals, you have to stay focused on the tiny details over the long haul.

What are we talking about? Staying out of debt. Investing continually. Avoiding the “I deserve” trap. Year after year after year. Wash, rinse, repeat. And guess what? You’ll keep doing those things even after you hit that million-dollar mark, because that’s what money-smart people do. You keep on going!

And if you’re looking to learn more, Dave’s newest book, Baby Steps Millionaires, doesn’t just tell you what to do. It also tells you why to do it, how to do it, and when to do it. Grab a copy today to learn how to bust through the barriers preventing you from becoming a millionaire.

About the author

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.

How To Become A Millionaire (It’s Simpler Than You Think!)

Seeing people announce their net worth on social media may have you asking yourself, «How do I become a millionaire?» Yet «millionaire» can feel like a huge, unobtainable word. However, the good news is that becoming one is actually more realistic than you might think.

These days, being a millionaire isn’t necessarily about butlers, private jets, and luxury. Instead, it can mean guaranteeing yourself a comfortable (or early) retirement.

It can give you the career freedom to pursue a passion instead of being tied to a paycheck. The public perception of «millionaires» may be rooted in consumerism, but that doesn’t have to be your goal.

So, just how easy is it to become a millionaire? Well, «easy» isn’t the right word—it requires a lot of intentionality, discipline, and patience. So a better term than «easy» is «simple».

By studying the common practices of millionaires, we can identify patterns and follow in their steps to become a millionaire.

Let’s dive into how to become a millionaire the simple way!

How to become a millionaire with no money

Even if you’re starting out without any cash at all, becoming wealthy is completely possible. Here are seven tips to find out how to become a millionaire with no money!

1. Develop a millionaire’s mindset

So, to answer your burning question, «How do I become a millionaire» you need to develop a millionaire’s mindset. Don’t worry; I won’t tell you to make a vision board (unless you want to).

But more than anything, wealth is a mental game. If you’re not starting with a solid money mindset, you may struggle to adopt the habits and practices of millionaires.

Some mindset characteristics to build into your millionaire routine are:

Plan ahead

Think ahead about your short-term, medium-term, and long-term financial plan and what you’ll do in case of emergencies. Have a solid financial plan and prepare for unexpected events. It’s a huge part of reaching your goal of millionaire status.

Determination

Know that you’ll face challenges but be prepared to overcome them. It’s important to stay determined with your goal and never give up on your dreams, no matter how big they are!

Patience and delayed gratification

Be willing to delay present wants for future goals. Evaluate what you truly want, which can keep you from frivolous spending and make saving and investing easier.

Confidence

Have faith in yourself that you can pay off that debt that seems insurmountable, reach that next number in your savings account, or launch the business you’ve been dreaming about. If you start with the mindset that you can’t, you probably won’t, but the opposite is also true.

Openness

Be willing to learn, make mistakes or even fail sometimes, and then learn even more. Seek knowledge and surround yourself with positive influences.

Of course, not all millionaires share these traits, but I’m not talking about lottery winners, celebrities, or trust-fund inheritors. I’m talking about regular people who decided they were going to build wealth and went ahead and did it. They’re not that different from you!

2. Carefully watch your expenses (big and small)

The secret to how to become a millionaire fast is to watch all of your expenses, big and small! One of the quickest ways to hamstring your financial progress is to buy «too much house» or «too much car». You may have heard the term «house poor,» and this is what it means.

Too many people get caught up in the trap of having overly expensive mortgages and car loans that take up the bulk of their income, leaving them with little or nothing to put towards their savings.

While big purchase decisions only come around once in a while, your financial plan should also account for small expenses. These can be «death by a thousand cuts» to your savings goals.

Look for opportunities to reduce costs like your cell phone bill, cable or subscription services, eating out, shopping for non-necessities, and so on.

A great goal is to see if you can live on just half of your income and save the other half. Try it as an experiment for a year, and keep it going if you can! It will get you to your million dollars a lot faster.

3. Try to max out retirement investment accounts

Investing your money is how to become a millionaire fast. The two most common types of retirement accounts are IRAs, which are personal accounts, and 401(k)s, which are usually offered through work. You can have both kinds, and they both allow you to invest in the stock market while saving money on taxes.

If you contribute as much as you possibly can to these accounts, it’s like the fast track of how to become a millionaire. Today, there is an all-time high of both «401(k) millionaires» and «IRA millionaires,» meaning that people become millionaires just by investing in these accounts.

The conclusion here is that those «IRA millionaires» didn’t get there because they were already rich and could contribute hundreds of thousands of dollars all at once. It means they got there through slow and steady investing and growth.

Crunch the numbers

Let’s run a few example numbers based on an average historical return of 10%. Use an investment calculator to play around with it yourself!

Like I said before: the «how do I become a millionaire» question has an answer that’s simple, not necessarily easy!

Of course, no one knows what the stock market will do in upcoming years. It could have years with a negative return before recovering and growing again. But if you stop yourself from investing out of fear of a crash, you might just find yourself missing out on years of incredible growth.

4. Increase your income to become a millionaire faster

If you’re staring at those numbers above and thinking, «Yeah, okay, like I have an extra two grand a month,»—I’m with you! Even if you’ve pared down your expenses as far as they’ll go, sometimes there’s just no more wiggle room.

When you need to know how to become a millionaire with no money, it’s time to look at the other side of the equation: increasing income.

Increasing income can come in several forms. For instance, you could:

So evaluate your skills, interests, and strengths, and brainstorm how to monetize them. The more you earn, the more you’ll be able to save and invest. Increasing your income is how to become a millionaire fast!

5. Use your money to make money

Most wealthy people don’t just sit on a hoard of gold like a dragon—they put their money to work for them. Using your money to make money with little active effort is called «passive income.»

The easiest way to generate passive income is by investing in stocks for the compound interest or keeping your savings in high-interest bank accounts. If you manage to max out your retirement accounts for the year, you can continue investing money in a brokerage account or an HSA for health expenses.

Many millionaires attribute their success to real estate investing, which can be active or passive income, depending on your method. Learn more about real estate investing options for beginners here.

There are also some unique ways to make passive income, like purchasing an ATM and earning through fees or owning a vending machine in a well-placed location. So, using your money to make money is how to reach millionaire status quicker.

6. Avoid «lifestyle creep»

As you scale your income, it becomes tempting to scale your lifestyle too. Lifestyle creep happens when items you once considered luxuries are now part of your new normal. It can be as small as buying expensive coffee every morning or as big as buying a beach house or a boat.

Another common trap people fall into is «keeping up with the Joneses.» If your neighbors, friends, and family members are buying nice cars, eating out every day, and upgrading their houses, it’s normal for a little jealousy to creep in.

It might sound a little strange, but if you’re wondering, «how do I become a millionaire?», live like you’re the opposite of one.

7. Avoid debt at all costs

If you need to know how to become a millionaire with no money, one way is to have more to invest by getting rid of debt. People get into debt when they buy things that they can’t afford without additional funds. If you’re serious about building wealth, it’s time to put down the credit card.

This isn’t to say you can never buy something on credit, but know that carrying a balance and paying interest is one of the big setbacks that can stop you on your road to wealth.

Instead of going into debt, pay off any debts you have, and in the future, save up for expenses rather than buying things that are unaffordable.

How do millionaires make their money?

Now you’re aware of how to become a millionaire. But how do millionaires make their money? What type of jobs do they have?

It’s important to note that about 90% of the billionaires in America are self made. Meaning they created their wealth on their own instead of inheriting it. And with focus and dedication, you can also learn the secrets of self made millionaires.

Here are some ways that millionaires get rich.

Business

You might become wealthy as an entrepreneur. If you sell a product that becomes popular or you provide a service that people are willing to pay for, it’s possible to make a great deal of money through business.

This typically takes a lot of hard work and dedication though, but if you’re a great salesperson and have a good idea, this is completely possible.

Stock market investing

When asking, «how do millionaires make their money?», the stock market is going to come up a lot. Many millionaires put money into investments such as stocks to make a profit. Be sure to research before investing, but it is one of the best ways to grow your money.

Real estate

Real estate can help you with building wealth, and it’s a pretty popular choice. In fact, 90% of millionaires around the world made their money from real estate investments. Houses tend to go up in value, and it’s just a ridiculously practical way to use your money.

Buying a rental property is one way to go with this, but you’ll need to save up first. Another way to invest with real estate is through REITs, which allow you to invest passively but still use real estate as a means to gain wealth.

Asset appreciation

Assets are things like land, houses and other real estate, investments, art, and other things that can make you money. If your assets go up in value it raises your net worth, and it could help make you a millionaire.

Appreciating assets are great for acquiring wealth and should be something you pay attention to in your millionaire journey.

Books on how to become a millionaire

If you need to know how to become a millionaire fast, read. These books help show you how easy it is to become wealthy, thanks to the many insights from those who have done it before.

(P.S. The books listed below have affiliate links. This means we might earn a small commission if you use our link. This helps us keep our platform completely free!)

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley

The Millionaire Next Door digs deeper into the principle of living simply to build wealth. It shows that millionaires can be your Toyota-driving neighbors and emphasizes why showing off with status symbols is worth so much less than financial independence and security.

For those wondering, how do millionaires make their money, it offers tons of insight.

The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life by J L Collins

The holy grail of many in the FI (financial independence) community, and for a good reason. The Simple Path to Wealth is clear but comprehensive and highly actionable no matter what stage you’re in with your financial journey.

The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach

A book that has a similar lesson to the Simple Path to Wealth, focusing on maximizing your investments and living below your means. The Automatic Millionaire is a good option for beginners who are looking for a «set it and forget it» process for how to become a millionaire.

Check out these books to learn more about how to attain millionaire status!

You can become a millionaire!

So now you know how to become a millionaire! Remember, becoming a millionaire won’t happen overnight, but with hard work, dedication, and time, it’s totally within your grasp.

Keep in mind that there are so many lessons to learn from millionaires that can act as a roadmap. Your challenge now is to go off and build the mindset and habits you need to create meaningful wealth and a 7-figure future.

Start on the path to millionaire status with our completely free «Build a solid foundation» bundle! You will learn how to transform your mindset, create a budget that works, set financial goals, and organize your finances!

What Are Your Odds of Becoming a Millionaire?

See how your rank by factors, such as age, race, and education

About one-third of Americans believe that they will most likely become a millionaire in their lifetime. But how likely is it really? What are the odds of becoming a millionaire, a billionaire, or just monetarily successful? We’ve taken a deeper look into the true likelihood of wealth and, importantly, who is more likely to succeed financially.

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What Are Your Odds of Becoming a Millionaire? Transcript

What are the chances of becoming a millionaire?

Roughly three out of 100 people in the U.S. are millionaires, but your chances of becoming a millionaire depend very much on your age, your race, and your education.

The concept of Crazy Rich Asians isn’t too far off from reality: Asian-Americans are more than three times more likely to become millionaires than African-Americans.

White and Asian people have much higher odds of becoming millionaires (about one in five). This severe race-based wealth gap, which is so often denied in our culture, continues regardless of age and education.

If you can afford a post-graduate degree, you have a one in three chance of becoming a millionaire; choosing to stop with a high school diploma reduces your chances by 28.6%.

This shouldn’t be too surprising, as increasing your education increases your salary as a general rule. While many jeans-wearing billionaires like Sir Richard Branson might tell you that you don’t need to go to college to get rich, you probably should.

Yes, education does raise your chances regardless of race, but it hardly evens the playing field.

According to data from the Federal Reserve Board’s Survey of Consumer Finances, white people see the highest jump in odds according to education. Hispanic and black people only increase their odds marginally with a post-graduate degree.

A black person with a graduate degree has a 6.7% likelihood of becoming a millionaire — less than the percent likelihood of a white person with an associate degree.

Ask yourself, “What is my chance of becoming a millionaire?” and see how much harder or easier you have it than other Americans.

What are the odds of becoming a billionaire?

There are only slightly more than 500 billionaires in America, making your odds of becoming one roughly one in 578,508. Worldwide, there are 2,043 billionaires among 7.4 billion people. Still, the racial wealth gap continues: Only 11 of them are black. Interestingly, the education gap is a bit different, with 63 of the Forbes 400 having only a high school degree.

While you might have better chances as an American than someone from another country, if you’re wondering, “Will I be a billionaire?” the answer may have to do with lady luck more than anything else.

Why do we love the romantic idea of working hard?

Despite the evidence, and how disparate the wealth gap is in America in terms of household income to the rate of inheritance among the country’s most wealthy citizens, most people still believe in hard work. We may be still asking ourselves, “Will I become a millionaire?” or even, among the more delusional of us, “When will I be a millionaire?” While it’s true that those who manage to live past 62 have a higher chance than younger people, the odds of becoming a millionaire remain fairly low for most Americans.

One thing that’s interesting to see is that your belief in hard work being related to wealth depends on how wealthy you already are.

About six in 10 surveyed Americans believe they can make it if they’re willing to work hard, while more than nine in 10 surveyed millionaires believe they became wealthy due to hard work.

Is it true that hard work leads to wealth? Or is it a cognitive bias?

It’s clear that attitudes are starting to change; more people believe that poor people work hard, that wealth has to do with luck, and that it can be difficult to climb the economic ladder.

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