Everyday Millionaires

1. Millionaires are self-made, not inheritors of wealth

Only 21% of millionaires received any inheritance at all from their parents.

Debunking the myth. Contrary to popular belief, most millionaires in America today are not born into wealth. The research conducted on over 10,000 millionaires reveals that 79% of them received no inheritance whatsoever. This data shatters the misconception that wealth is predominantly passed down through generations.

Building wealth from scratch. The majority of millionaires have built their wealth through hard work, smart financial decisions, and consistent investing over time. They often come from middle-class or lower-income backgrounds and have worked their way up through discipline and determination.

• 48% of millionaires described their parents' household as middle class
• 27% described it as lower-middle class
• 4.25% described it as lower class

2. Hard work and discipline, not luck, create millionaires

76% of millionaires say that anyone in America can become a millionaire with discipline and hard work.

The power of belief. Millionaires overwhelmingly believe that wealth-building is accessible to anyone willing to put in the effort. This mindset drives their actions and decisions, leading to financial success.

Discipline over luck. Millionaires are 15 times more likely to attribute their success to discipline rather than luck. They consistently make choices that align with their long-term financial goals, often sacrificing short-term pleasures for future gains.

Key habits of millionaires:

• Living below their means
• Avoiding debt
• Saving and investing consistently
• Setting and pursuing long-term financial goals

3. Steady investing in employer plans, not risky ventures, builds wealth

79% of millionaires reached millionaire status through their employer-sponsored retirement plan.

The power of 401(k)s. Contrary to the myth of millionaires making risky investments, the vast majority build their wealth through steady contributions to employer-sponsored retirement plans. These plans offer tax advantages, potential employer matches, and the benefit of compound interest over time.

Avoiding get-rich-quick schemes. Millionaires typically avoid high-risk investments and get-rich-quick schemes. Instead, they focus on:

• Maxing out 401(k) contributions
• Taking advantage of employer matches
• Investing in diversified mutual funds
• Consistently investing over decades

The average millionaire hits the $1 million mark at age 49, demonstrating that wealth-building is a long-term process rather than an overnight success.

4. Millionaires are ordinary people with extraordinary habits

The top three occupations for millionaires are engineer, accountant, and teacher.

Breaking stereotypes. Millionaires aren't all CEOs, doctors, or lawyers. Many work in ordinary professions but practice extraordinary financial habits. This reality challenges the notion that high incomes are necessary for wealth accumulation.

Income vs. habits. The research shows that:

• Only 31% of millionaires averaged $100,000 household income a year
• One-third never had a six-figure household income in a single working year
• Only 7% averaged over $200,000 household income over their career

What sets millionaires apart is not their income, but their financial habits and decisions. They prioritize saving, investing, and living below their means, regardless of their profession or income level.

5. Financial independence requires intentional living and budgeting

94% of millionaires say they live on less than they make, compared to 55% of the general population.

Budgeting for wealth. Millionaires are intentional about their spending and saving habits. They create and stick to budgets, even after achieving millionaire status. This level of financial discipline is a key factor in building and maintaining wealth.

Frugal living habits. Many millionaires maintain frugal habits despite their wealth:

• 93% use coupons when shopping
• 85% still use a shopping list when buying groceries
• The typical millionaire spends $200 or less per month on restaurants

These habits demonstrate that wealth-building isn't about earning more, but about being intentional with what you earn.

6. Goal-setting and long-term planning are crucial for wealth building

92% of millionaires develop a long-term plan for their money, compared to 60% of the general population.

The power of planning. Millionaires are more likely to set clear, long-term financial goals and develop plans to achieve them. This forward-thinking approach guides their daily financial decisions and keeps them focused on their ultimate objectives.

Characteristics of millionaire goal-setting:

• Mixing short-term and long-term goals
• Writing down goals for accountability
• Setting SMART goals (Specific, Measurable, Achievable, Relevant, Time-Sensitive)
• Regularly tracking progress towards goals

Millionaires also prioritize paying off their homes early, with 67% living in homes with paid-off mortgages. This goal-oriented approach to eliminating debt contributes significantly to their overall net worth.

7. Consistency and patience are key attributes of millionaires

98% of millionaires say they do not leave things undone and always finish what they start.

The power of persistence. Millionaires demonstrate remarkable consistency in pursuing their financial goals. They understand that wealth-building is a long-term process that requires patience and persistent effort.

Leveraging compound interest. Millionaires harness the power of compound interest through consistent investing over long periods. They understand that:

• Starting early maximizes the impact of compound interest
• Regular, consistent contributions are more important than large, sporadic investments
• Time in the market is more crucial than timing the market

This patient, consistent approach allows millionaires to weather market fluctuations and achieve substantial growth over time.

8. Education matters, but prestigious degrees aren't necessary

79% of millionaires did not attend prestigious private schools. 62% graduated from public state schools, 8% attended community college, and 9% never graduated college at all.

Value of education. While 88% of millionaires have a bachelor's degree (compared to 33% of the general population), the prestige of the institution is not a determining factor in their success. What matters most is the education itself and how it's applied.

Avoiding student debt. 68% of millionaires with a college degree never took out student loans. They prioritize:

• Attending affordable public or state schools
• Working while in school to cover expenses
• Pursuing scholarships and grants
• Avoiding the long-term financial burden of student loans

This approach allows them to start their careers without the weight of educational debt, enabling earlier wealth-building.

9. A strong work ethic is fundamental to millionaire success

99% of millionaires said their friends and family members would describe them as hard workers.

The value of hard work. Millionaires consistently demonstrate a strong work ethic, viewing it as a key factor in their success. They don't rely on shortcuts or easy paths to wealth, but instead commit to consistent effort over time.

Characteristics of millionaire work ethic:

• 96% enjoyed what they did for a career
• 64% say they "loved" their jobs
• 80% exercise three or more times a week
• 70% are early risers

This dedication to hard work extends beyond their careers, influencing their approach to health, personal development, and overall life management.

10. Debt-free living is essential for achieving millionaire status

96% of millionaires never carry a credit card balance and 95% plan ahead and save up for big purchases.

Avoiding the debt trap. Millionaires understand that debt is a significant obstacle to wealth-building. They prioritize living debt-free and saving for purchases rather than relying on credit.

Key debt-avoidance strategies:

• Paying off credit card balances in full each month
• Saving for large purchases instead of financing
• Avoiding car payments (82% of millionaires have no car payments)
• Prioritizing paying off mortgages early

By avoiding interest payments and the financial stress of debt, millionaires can direct more of their income towards savings and investments, accelerating their path to financial independence.

Last updated: January 23, 2025