Many people dream of joining the millionaire club and that dream has become a reality for many Americans.
According to the Federal Reserve’s latest data from the end of 2022, the number of millionaire households in the U.S. is rising – and it’s not just inflation making the numbers look bigger. Even when adjusting for inflation, the percentage of households with a net worth of at least $1 million surged from 2019 to 2022 after being relatively flat for nearly two decades.
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So, just how many millionaires are out there? According to the Federal Reserve’s 2022 survey, approximately 18% of U.S. households had at least seven figures net worth. That’s roughly 23.7 million millionaire households across the country. And with the stock market and real estate values performing strongly since then, even more households will likely join the ranks of millionaires in 2024.
While these numbers are exciting, they also come with some interesting insights into building that kind of wealth. Millionaire households share certain characteristics that offer clues for boosting their net worth.
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Common Traits and Characteristics of Millionaire Households
Most millionaires don’t fit the luxury-laden stereotype. Many built their wealth through disciplined saving and investing, often in employer-sponsored retirement accounts like 401(k)s. Roughly 70% of millionaires accumulated their wealth this way and a surprising 73% have never carried a credit card balance. The majority aren’t high earners either – most didn’t hit six-figure salaries during their careers.
According to MillennialMoney, most millionaires are 60-79 years old, which shows that it takes time for most people to accumulate wealth.
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Real estate also plays a big role, with primary residences contributing about 32% of a typical millionaire’s net worth. Millionaires also prioritize education, with over 60% holding a degree from public universities and only 8% from Ivy League schools.
Another characteristic is saving. Millionaires often live below their means and prioritize saving over spending. This discipline helps them build up their assets while avoiding lifestyle inflation – the temptation to spend more as income rises.
Many millionaires also have multiple streams of income. Whether through investments, side businesses or diversified career paths, they don’t rely on a single source of earnings.
See Also: Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on how on what’s behind this formula.
What Does This Mean for You?
While these habits may serve as a road map, wealth-building isn’t a one-size-fits-all process. If you’re aiming for millionaire status, consulting a financial advisor can help you craft a strategy that fits your lifestyle and goals. A pro can guide you in picking investments that align with your risk tolerance and financial timeline – because, let’s face it, the road to a million is smoother with some expert advice along the way.
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This article Guess What Percent Of Households Have Over $1 Million? You Might Be Shocked By The Number Of Millionaires originally appeared on Benzinga.com
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