The pursuit of a $1,000,000 bank account has long been a common aspiration among the human population. While there are many definitions of success, there’s a universal allure to the idea of becoming a millionaire - and why not? After all, millionaires drive nicer cars, live in bigger homes, and dine at the most sophisticated establishments, right?
According to the book, The Millionaire Next Door, you can’t necessarily tell if a person is wealthy or not, just by looking at them. In fact, there may even be a negative correlation between what you believe someone is worth and the actual wealth of the individual. According to wealth researcher, Thomas Stanley, millionaires are actually more likely to drive a Toyota or Honda than a Mercedes or BMW. There are also three times more millionaire houses valued at $300,000 or less than there are valued at $1 million or more. Millionaire shopping habits too, aren’t exactly what they seem. According to Ramsey Solutions, the average monthly grocery bill for millionaires is $412 - less than the average non-millionaire American household ($647 per month). And when it comes to dining out at restaurants, the average American spends $3,365 per year, while the average millionaire spends $3,204.
Millionaires aren’t often the super-rich, lavish lifestyle living, individuals we make them out to be. They aren’t often born with silver spoons in their mouths and they rarely grow up to be founders of a technology company or new crypto currency. Most of them (79%) are self made millionaires employed by large corporations — and 93% of then said they’ve accumulated their wealth through hard work, not due to large salaries. Only 31% of them averaged over $100,000 a year throughout their careers and 1/3 of millionaires never made a six-figure income.
The career choices of millionaires, although well-respected, are far from glamorous as well. The top five career roles held by millionaires include engineer, CPA, lawyer, manager, and teacher. For the most part, these roles require college degrees, which is why 88% of millionaires have one, but lucky for most of us, only 8% were from prestigious private school.
Millionaires remain disciplined however. The vast majority take advantage of their company’s retirement vehicles, like 401(k)s and 75% claim that consistent investing over long periods of time contributed to their financial success.
One one hand, the financial reality check of replacing shopping sprees on Rodeo Dr. for periodic investment plans and exchanging an imaginary 6-Series BMW for a Toyota RAV4 may be a letdown, but on the other hand, maybe reaching millionaire status isn’t so difficult after all.
As of early 2023, there were about 62.5 million millionaires globally with that number expected to reach 84 million by 2025.
The $1 million question is, are you able to live the average millionaire lifestyle to be one of them?
This is true, Sean. Frugality, I find, is a common trait. It’s not a popular idea these days as culture dictates otherwise. But, again and again, the proof is in the pudding.