How many of us have ever dreamed of becoming a millionaire and beyond someday? To have built enough wealth that we can leave an inheritance to our children’s children. To give beyond what we could ever imagine.
This past March I had read an inspiring book that I want to share in this post. One of my goals this year is to read one non-fiction book a month in order to learn new things and to continue growing in every area of my life (spiritual, marriage, fitness/health, finances and relationships).
Earlier this year I had been anticipating the release of Chris Hogan’s “Everyday Millionaires: How Ordinary People Built Extraordinary Wealth- and How You Can Too.” Chris is an expert and trusted speaker on investing and retirement. Once I got my hands on a copy of his new book, it was hard for me to put it down. It literally took me only two evenings to read and normally I am not a fast reader.
The book was written on the largest study conducted on net-worth millionaires in the United States to date. By definition, a net-worth millionaire is someone that has assets (what they own minus what they owe) totaling one million dollars, not someone that makes a million dollars a year.
With over 10,000 net-worth millionaires participating in the study, the book provides a good snapshot of what millionaires in America did to build wealth and displays data that disproves the myths and preconceptions that we have held regarding wealth accumulation today. Some of the statistics were incredibly eye opening.
Here are two common myths that were explored in this study:
1. Millionaires didn't earn their money
Despite our previous ideas on how millionaires become wealthy in America, this book found that today’s millionaires did not inherit the majority of their money or win the lottery. In fact, of the 10,000 that were surveyed in this book, 79% never received any inheritance at all.
In addition, 8 out of 10 millionaires surveyed came from families that were at or below the middle class. Wow, they were first generation millionaires. That is incredible!
2. Millionaires have high paying jobs
Can you guess the top three professions of millionaires in America? Maybe actor/actress, surgeon, CEO… These were my top three guesses.
Nope. The top three ranking millionaire professions in the US are: engineer, accountant and teacher.
And, 1/3 of millionaire households never made a six-figure income in one year. How neat is that! This book completely blew my previous beliefs on wealth accumulation out of the water.
How did they get there?
So if millionaires aren’t inheriting their wealth and they don’t all have six figure incomes, how exactly did they get there? Well, the study has found that millionaires get out of debt and avoid it at all costs. They understand that their household income is their largest wealth building tool.
This is the most valuable piece of information that Luke and I have learned about personal finance and it was one of the biggest driving forces that led to us paying off 57K in 7 months. When you aren’t giving anyone else your hard earned money through debt payments, the game completely changes.
In addition, the millionaires studied were extremely diligent and hard-working individuals that steadily invested in their company’s 401K and IRAs.
The process to becoming a millionaire is a slow one and frankly a little boring. The study found that it takes 28 working/saving and investing years on average to become a millionaire. The average age to hit that mark is 49 according to Chris Hogan’s study.
There are over 100 exciting statistics in the book just like these. All of which uncover the identities, habits and the paths that these millionaires took to get there.
Overall the book was a really fast and easy read. If you are looking for inspirational stories about millionaires in the United States today and how to become one, this book is absolutely for you! I found so much hope woven into the pages of this book that made it crystal clear that building wealth in America is more possible than ever.
The truth is, the future is bright and we have the power within us to make this happen. We are responsible for our destiny. God is guiding our future but we have to be willing to take action and take the steps along the path He has laid before us.
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