Here are twenty interesting facts that research has discovered about millionaires that you may not know or believe to be true.
Only 19% of millionaires received money from a trust fund or estate, and 91% never received any ownership of a family business; a substantial percentage are self-made millionaires. 80% are first generation rich and self-made. Less than 20% inherited significant money (10% or more of their wealth).
Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the primary reason for their success.
Only 15% of millionaires were in senior leadership roles, such as vice president or CEO, CFO, COO, etc. 93% of millionaires said they achieved their wealth because they worked hard, not from big salaries.
It’s the college degree that matters, not where it comes from. Almost two-thirds of millionaires (62%) graduated from public state schools, while only 8% went to a prestigious private school. Most millionaires do have college degrees. 88% have college degrees. Only 33% of U.S. adults have graduated college.
Self-employed people with small businesses are four times more likely to be millionaires than those who work for others at jobs. Of non-retired millionaires, two-thirds of them are small business owners.
The majority of millionaires believe that financial independence is more important than displaying high social status with material things.
About 8.8% of American adults are millionaires. Most of them (95%), have between $1 million and $5 million.
After the U.S. at 40% of the world’s millionaires, the next highest 5 countries for millionaires are China 10%, Japan 6%, United Kingdom 5%, Germany 5%, and France 4%. These top six countries represent 70% of the world’s millionaires
The nine cities with the most millionaires, in decreasing order are Tokyo, New York City, London, Paris, Frankfurt, Beijing, Osaka, Hong Kong, and Shanghai. [1]
More millionaires identify as Republican 38%, Democrat 30%, and Independent 29% according to a 2014 survey.
Most millionaires don’t drive luxury cars. The top 5 brands driven by millionaire households are Toyota, Ford, Honda, Lexus and Subaru. Their cars are usually not current model year (used) and rarely leased.
86% are married and typically 65% still in their first marriage.
97% are homeowners and have (on average) lived in the same home for more than 20 years.
Eight out of ten millionaires (80%) invested in their company’s 401(k) plan.
The top five careers for millionaires include engineer, accountant, teacher, management and attorney.
Most millionaires who own their own businesses are in dull, low-tech businesses, such as construction trades, auctioneers, farmers, owners of mobile-home parks, pest controller, coin and stamp dealers, etc.
On average, they save/invest 20% of their realized household income.
The highest concentration of millionaire households live in 1. New Jersey, 2. Maryland, 3. Connecticut, 4. Massachusetts, and 5. Hawaii.
There are approximately 22 million households with a net worth of over $1 million, 1.45 million households with a net worth above $10 million, and around 90,000 that have a net worth of at least $50 million.
To be in the top 1% of income, you need to earn approximately $600,000 per year, and to be the top 1% in terms of accumulated wealth in net worth you need approximately $11 million.
Sources The Millionaire Next Door and The National Study of Millionaires by Ramsey Solutions.
