More New Millionaires.
Are you a millionaire yet? No? Well come on, more and more people are joining the ranks of the rich why shouldn’t you be one of them. A millionaire is defined as someone with a net worth of $1,000,000 or more excluding their primary residence.
If you haven’t made the millionaire level yet don’t be discouraged becaue you might be part of what TNS Financial Services calls the “emerging affluent.” If your net worth falls between $100,000 and $500,000 then you’re emerging (emerging from what I don't know).
This article on the Money.com website cronicles the findings of a survey done by TNS and some of the statistics amazed me.
I was shocked to see the average household income of these millionaires.
“The total income reported among millionaire households averaged $119,000. Among those households that drew some of their income from jobs, they earned an average of $82,000 in salaries or professional fees.”
I know a lot of people would love to make that much money but at the same time it isn’t what I associated with millionaires. I would think someone with a net worth of a million or more would have a high income especially when you consider this doesn’t include the value of their home.
The fact that these people can become millionaires with such a “low” income sounds a lot like the information in The Millionaire Next Door. I’m sure that with salaries like that they aren’t spending 60, 70 or 80 thousand dollars on a new car every few years. I’m also pretty sure that they aren’t living in the biggest house they can possibly afford.
It sounds like these millionaires are saving a lot more than the average person, living far below their means and I’d also bet they aren’t being reckless with their investments.
I think this proves it’s not what you make but what you do with the money you make. If you save by having discipline and invest without taking too much risk I’m sure you can do a lot better than you ever imagined.
Another statistic from the millionaire study that surprised me was the average age of these millionaires.
“The average age among the heads of these households was 56, and about 75 percent of them said they felt confident they will be financially prepared for retirement.”
In the age of instant gratification this survey tells me that slow and steady wins the race. For some, the quest to get rich can do more harm than good. It’s the desire for easy money that leads people to buy those infomercial get rich quick schemes or try the latest stock trading technique. All these things can do more harm than good as you spend money that would better serve you in safer investments.
I’m not saying risk is a bad thing since I’ve taken quite a few in my life but there are ways to minimize the risk and make more informed choices.
I find a lot of good articles such as this one that seem to show a combination of perseverence and hard work pays off, but right next to the more millionaires article was a link to a story titled “Holiday gifts for those with bucks.” The thing is that people who reached a high net worth with “normal” incomes won’t be interested in these gifts since they got rich by avoiding overspending on frivolous and unnecessary items.