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How to Become a Millionaire!

September 14, 2021

So you want to be a millionaire. What does it take? Do you have to inherit a massive amount of wealth? Graduate from an Ivy League school? Earn a high salary? There’s a ton of speculation out there, but what’s surprising about the latest data is that most millionaires in America today are ordinary people with average incomes and no inheritance. How can this be?

A best-selling book published in 1996 called The Millionaire Next Door debunked many of the preconceived notions about how to become a millionaire. However, the problem with this study is that it had a relatively small sample size.

In 2019, Chris Hogan—one of Dave Ramsey’s primary associates—recreated the fascinating study from 1996 in his best-selling book, Everyday Millionaires. This study pulled information from 10,000 participants, making it a much larger sample size.

Let’s break down some of the numbers from Chris Hogan’s book and figure out just what it takes to become a millionaire.

Assumption #1: Millionaires Inherit Their Wealth

A whopping 74% of Millennials and 52% of Baby Boomers believe that most millionaires inherit their wealth, but the data says this assumption is false. Only 21% of millionaires receive any inheritance at all. Just 16% of those who inherit anything receive more than $100,000, and a mere 3% inherit $1 million or more. This means nearly 80% of millionaires are self-made.

Assumption #2: Millionaires Attend Ivy League Schools

It’s a common belief that attending a fancy school is the ticket to becoming rich. The reality is that 62% of millionaires graduated from public state schools, and nearly one in 10 didn’t even graduate from college! Another interesting thing to note is that half of all millionaires earned a B average or less in college.

Assumption #3: Millionaires Have a High Salary

Many people assume that millionaires are able to accumulate wealth because they make a ton of money. The truth is that only 15% of millionaires are CEOs, CFOs, COOs, or other members of the “C-suite.” Plus, just 31% of millionaires earn $100,000 or more per year. In fact, a third of all millionaires never earn a six-figure salary in a single year of their career!

You Can Become a Millionaire!

The lesson to be learned here is that if you truly want to be a millionaire, you can make it happen. All you need to do is follow the key concepts Nelson Financial Planning has conveyed to our clients for years. These are:

  • Start saving now
  • Be consistent
  • Diversify your investments

It takes time and dedication to become a millionaire, but if you think you have what it takes, Nelson Financial Planning can help you get there. Contact us today at 407-307-3061 for answers to your questions or to start down the path to becoming a millionaire!