In the United States, there are around 24.5 million people who are millionaires. The United States is home to about 39.2% of all of the millionaires in the world. This is based on the number of people who have the equivalent of $1 million in U.S. assets.
There are about 336 million people in the U.S. With 24.5 million of them being millionaires, the odds that someone in the U.S. will end up a millionaire come in at around 7.29%.
Of course, some people are more likely to be among that 7.29% than others, including those who are born rich or who earn advanced degrees and go into lucrative professions. But, you don't have to be an heiress or a sports superstar to become a millionaire (although it helps). You can do a few simple things to increase your chances, including the following three moves.
1. Take steps to increase your income
One of the best ways to maximize your chances of becoming a millionaire is to take steps to earn more money over your lifetime. After all, the more you earn, the easier it is to invest in assets that will eventually generate $1 million or more of wealth.
You can earn more money by choosing your profession wisely, and by pursuing advanced degrees. Men who earn a bachelor's degree earn around $900,000 more in median lifetime income compared with males who have only a high school diploma. Women with bachelor's degrees earn $630,000 more in median income than their peers with just high school degrees. And men and women with graduate degrees will earn $1.5 million and $1.1 million more respectively, compared to high school graduates.
If you make hundreds of thousands or millions of dollars more over your lifetime, it will be a lot easier to do the things needed to achieve millionaire status -- like supercharging your savings.
2. Save early and often
You can also significantly increase your chances of becoming a millionaire by saving as much as you can and saving steadily. This is true no matter how much income you make.
Let's say you start saving at age 20. To have $1 million by age 65, you'd only have to invest $115.91 a month to achieve millionaire status (assuming a 10% average annual rate of return, the approximate 50-year average return of the S&P 500). If you waited until age 45 to invest, you'd need to invest $1,454.96 per month instead.
If you start saving at a young enough age, your odds of becoming a millionaire are increased significantly since it's a lot more feasible to find a couple hundred dollars to save monthly than it is to find a couple thousand. You could have a great chance of ending up with a seven-figure nest egg if you make consistent investments over a long time.
3. Invest wisely
Finally, you'll need to invest wisely. This means putting money into a brokerage account and investing some of it in the stock market so you stand a chance to earn the returns you'll need to become a millionaire.
If you invested your $115.91 a month starting at age 20 but you earned just a 3% rate of return because you kept your money in a savings account, you'd only have $127,957.19. You need compound growth to work for you (which is what happens when you invest, earn returns, and those returns are reinvested to earn you more money).
The good news is, you don't need to pick stocks to invest wisely. Just put your money into an ETF tracking the S&P 500, a financial index of 500 large U.S. companies that has produced 10% average annual returns over the long run.
While the overall odds of someone in the U.S. becoming a millionaire are about 7.29% based on the percentage of the population with that much money, you can increase your odds significantly if you just take these simple steps.
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FAQs
While the overall odds of someone in the U.S. becoming a millionaire are about 7.29% based on the percentage of the population with that much money, you can increase your odds significantly if you just take these simple steps.
How hard is it to become a millionaire? ›
Even with a $150,000 starting investment, it would still take you 22 years to reach the $1 million mark. Of course, with the use of the steps already mentioned, plus consistent determination, diligence and perseverance, you can reach your goal of becoming a millionaire even more quickly than the previous example.
Are millionaires rare? ›
Out of a population of 8.1 billion people, just 62.4 million are millionaires. That's 0.8% of the population. There are 8.4 million people globally with a net worth of $5 million or more. Having this level of wealth would put you in the top 0.1%.
Is a millionaire in the 1%? ›
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
What is the average age of a millionaire? ›
Millionaires — those who have a net worth of at least $1 million —are, perhaps not surprisingly, on the older end. They're predominantly 55 and older; just 2.4% are under the age of 35.
What do 90% of millionaires do? ›
Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings. In this article, we delve into the reasons why real estate is a preferred vehicle for creating millionaires and how you can leverage its potential.
How rare is it to become rich? ›
There are about 336 million people in the U.S. With 24.5 million of them being millionaires, the odds that someone in the U.S. will end up a millionaire come in at around 7.29%.
Is being a millionaire impressive anymore? ›
To clarify, having $1 million is still a big deal. It's a great goal if you're not there yet, and an achievement to be proud of if you are. It's certainly not common, either, as recent research shows that only about 2% of U.S. adults are millionaires.
Are most millionaires born or made? ›
A study published by Wealth-X found that around 68 percent of those with a net worth of $30 million or more made it themselves. Further, a second study by Fidelity Investments found that 88 percent of all millionaires are self-made, meaning they did not inherit their wealth.
Is the average 50 year old worth $1 million? ›
Becoming a millionaire might seem out of reach for many Americans. Yet, for one age group, this reality is not too far-fetched. Indeed, people in their 50s have an average net worth of approximately $1 million, according to the Federal Reserve Board's triennial Survey of Consumer Finance.
Other factors that will make $100k feel insufficient are if you are carrying a high burden of student loans, paying off credit card debt, living well above your means, inflation eating into your salary and savings and an unexpected healthcare emergency.
What salary is considered rich for a single person? ›
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
Can a millionaire go broke? ›
If millionaires rely on one primary stream of income, and that stream fails them, then they are in a position to go broke. This happens to millionaires the same way it happens to us. If you only have one job or your household has only one breadwinner, then it can be devastating to lose that job.
What is the average salary of a millionaire? ›
As of Apr 19, 2024, the average hourly pay for a Millionaire in California is $20.17 an hour. While ZipRecruiter is seeing salaries as high as $47.69 and as low as $11.62, the majority of Millionaire salaries currently range between $14.71 (25th percentile) to $24.18 (75th percentile) in California.
Who is the youngest millionaire? ›
A 19-year-old Brazilian student, Livia Voigt, claims the title of the world's youngest billionaire, surpassing Italian teen Clemente Del Vecchio. Voigt, heiress to a major electrical motors manufacturer, holds a net worth of $1.1 billion.
What age group is the richest? ›
Americans at retirement age had a median wealth 10.5 times that of those in the younger-than-35 age group. The average American net worth picks up after age 35. Americans between 35 and 44 years old had a median net worth of $135,300, three-and-a-half times more than those younger than 35.
How long does it realistically take to become a millionaire? ›
The time it takes to become a millionaire depends on how much you save and the return you get on your money. If you invest $1,000 per month and get an 8% annual return, you'll be a millionaire in 25.5 years. The key to being a millionaire is to start investing right away and to be consistent about it.
Why is becoming a millionaire so hard? ›
One of the reasons that the first $1 million is so hard is that it is such a large amount of money relative to where most people begin. To go from $500,000 in assets to $1 million requires a 100% return—a level of performance very hard to achieve in less than six years.
Can an average person be a millionaire? ›
Sometime around age 50, the average American can now expect a household net worth exceeding $1 million. How did so many 50-somethings become millionaires? Household wealth swelled at a record pace during the pandemic.
What age is too late to become a millionaire? ›
The bottom line is, there's no age when you should stop working toward your financial goals or give up on achieving them.
