No Matter How Much You Talk About Millionaires, It Is Never Enough. Here Are 15 Interesting Millionaire Statistics.
The word millionaire was first used was in French in 1719. It described the speculators in the Mississippi Bubble who earned millions of livres, and lost millions of livres. Today it’s not about the livres, but about the dollars in these 15 Millionaire Statistics.
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Most Millionaires Are Self-Made
The World Ultra Wealth Report analyses the ultra-wealthy of the world; those who have a net worth higher than $30 million. According to cnbc.com, 67.7% are self-made millionaires in the world, 23.7% had a combination of inheritance and self-made wealth and 8.5% inherited all their wealth.
Wealth-X credits new opportunities for the rise in self-made millionaires, especially in the technology industry. However, according to dividendsdiversify.com, there is a rise in corporate millionaires with the need for tech professionals in places like Microsoft, Apple, Facebook and Alphabet.
If you also want to become a self made millionaire, check out 15 Jobs That Can Make You a Millionaire.
Millionaires in Numbers
So, how many millionaires are there in the world?
It’s estimated that there are 46.8 million millionaires globally, accounting for around $158,261 trillion in net worth. 40% of those millionaires are from the USA.
Moving up to billionaires, in Forbes’ 35th annual list of the worlds wealthiest, they reported a total of 2,755 billionaires – an increase of 660 billionaires from the previous year. Their combined worth is $13.1 trillion, a huge increase from the $8 trillion recorded in 2020.
Bet you’re wondering if there have ever been any trillionaires? You’ll have to wait to find out.
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Demographics of Millionaires
In our previous point, we highlighted that 40% of millionaires in the world come from the USA. Currently there are 11.8-million-dollar households in the US with 80%, being self-made first-generation millionaires.
Spendmenot.com further confirms that “about 44% of the millennial millionaires of the US are concentrated in California.”
76% of millionaires in the US are white or Caucasian.
Interesting shift in earnings, as reported by straitstime.com, of those that filed tax returns for $1 million or more in income in 2016; millionaire women out-earned the millionaire men. “Millionaire women earned US$2,506,220 vs US$2,477,680 for men, on average.”
How Many People Become Millionaires a Day?
In our video, 10 Richest Billionaires in the Philippines, we mentioned that every day in the USA, roughly 1700 people earn their millionaire status. And did you know that roughly every 17 hours, someone becomes a billionaire?
According to radio host and author of the book “Everyday Millionaires,” Chris Hogan, “These are regular, hardworking, everyday people. They’re not flashy,” he said. Most of them accumulated their wealth over time by making wise decisions.”
You can listen to that book on audible, remember to use your free book download by heading to Alux.com/freebook.
Location of the World’s Millionaires
The USA is home to 40% of the millionaires in the world, but who’s next? According to Forbes.com, it’s Japan in 2nd, Germany in 3rd and China in 4th. They add that, “a staggering 61.6% of the global HNWI (High-net-worth individual) population now live in these four countries.”
The pandemic has influenced millions of millionaires worldwide, and here’s how:
In the USA there was an 11% increase in millionaires. China increased by 22%, Switzerland increased the most by 28%, Canada 14% and Japan by 6%.
Countries that lost millionaires included Brazil, with a 22% drop, South Africa lost 19%, Mexico 6% and Chili, 11%.
This information was released on visualcapitalist.com by research conducted by Credit Suisse Global Wealth Report, 2020.
Millionaires by State
To gain that millionaire status, the bottom line does not include the value of your home, any employer-sponsored retirement plans and a few other selected assets. And despite New York and California having a huge volume of millionaires in quantity, there are other states that have a higher concentration of wealthy households.
We’ll highlight the top 5:
5 – Hawaii
4 – Massachusetts
3 – Connecticut
2 – Maryland
1 – New Jersey
Statistics released on kiplinger.com.
New Industries Equals New Millionaires
We mentioned that 1700 people are earning millionaire status every day in the US, and that’s because there are so many different ways that people can earn incredible money.
We focused heavily on this in our video, 10 Technologies That Can Make You RICH, where we mentioned areas like e-Commerce, paid subscriptions, live streaming, IoT, NFTs and crypto. With new technologies in the world, a whole new group of millionaires are emerging.
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Average Age of Millionaires
Aluxers, this can be viewed from two perspectives. The average age that most people make their first million, and the average age that people maintain their millions.
According to thegentlemansjournal.com, “the average age of a first-time millionaires is 37.” How long they manage to retain that million is a different story.
Spendmenot.com confirms that the average age of a US millionaire is 62 years old, and only 1% of US millionaires are younger than 35.
If you’re still on your journey to your first million, take to heart what the late American entrepreneur, author and motivational speaker, Jim Rohn once said, “Become a millionaire not for the million dollars, but for what it will make of you to achieve it.”
Next, we answer an important question…
How Long Does It Take To Become a Millionaire?
According to Thomas C. Corley , a contributor to businessinsider.com, “It takes the typical self-made millionaire at least 32 years to get rich.”
His research brought forward the following:
Of the millionaires he interviewed, 52% of them took 38 years from the time they started, 21% took 42 years, and only 4% made their first million in less than 27 years.
This data really puts a new perspective on “get rich quick” as its clear that those that made their millions did not do so very quickly.
Wealth and Ethnicity
Financialsamurai.com breaks down the chances of earning a million by race, age, and education. They sourced their information from The Federal Reserve Board’s Survey of Consumer Finances analysed by St. Louis Fed economists William Emmons, Bryan Noeth and Lower and Ricketts.
- Asian 22.3%
- White 21.5%
- Hispanic 6.8%
- Black 6.4%
We’ve covered age already, and next we’ll delve into education.
Wealth and Education
Here the financial samurai investigates all forms of education and breaks it down as follows:
Chances of becoming a millionaire with a high school degree by race:
- Asians 6%
- White 5%
- Hispanic 2%
- Black 1%
Chances of becoming a millionaire with an associate degree by race:
- White 7%
- Asians 3%
- Hispanic 2%
- Black 1%
Chances of becoming a millionaire with a bachelor’s degree by race:
- White 18%
- Asians 16%
- Hispanic 4%
- Black 3%
Chances of becoming a millionaire with a master’s degree by race:
- White 38%
- Asians 27%
- Hispanic 11%
- Black 6%
Of course, as the samurai points out, all we can ask for is equal opportunity, but the rest – like work ethics and actual skill, is up to us.
Millionaires and Property
For her book, “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” Sarah Stanley Fallaw, director of research for the Affluent Market Institute, studied over 600 millionaires.
She confirmed that most millionaires of the world lived in a property that was below their budget, allowing them to save a substantial amount each month.
There are many examples according to finance.yahoo.com:
- Warren Buffet lives in the same home he bought in 1958.
- Elijah Wood only spent $698,750 on his abode.
- Matthew McConaughey lived in a trailer that was just under 28 square feet for a few years.
Spendmenot.com shares data that most US millennials own an average of 3 properties, with a value of roughly $1.4 million. Billionaires, on the other hand, have around 9 properties with their locations as follows:
14% in Mexico
13% in the Bahamas
12% in England
9% in the Caribbean
9% in France
Industries With the Most Millionaires and Billionaires
In our video, 15 Skills Millionaires Master, we highlight the skills you need to make a million and be a success while doing so. One piece of advice we shared was having the ability to generate deals and opportunities, and when you hear of the industries that millionaires and billionaires are involved in – you’ll understand just how important that is.
- Finance and Investment
- Fashion and retail
- Tech Industry
In all these industries, being able to generate deals and create opportunities will have you earning your millionaire status in no time. Be sure to watch the video.
Millionaire’s File for Bankruptcy an Average of 3.5 Times
That average is seen on many websites, but is there any truth in this figure?
According to jayweller.com, “many millionaires actually strategically file for bankruptcy and they usually come out ahead when everything is said and done.”
The legal group adds that it has a lot to do with the restructuring of their debt.
There are many reasons why millionaires lose their money:
- Not tracking spending.
- Spending emotionally.
- Not having multiple streams of income.
- Trying to make too much too quickly.
To ensure you don’t fall into those traps, we recommend you watch our video 15 Examples of MILLIONAIRE MATH … and… you do the math.
It Takes 17 Ideas Before Nailing It
Timothy Sykes, a penny stock trader who’s claim to fame was converting $12,415 of Bar Mitzvah gift money into $1.65 million, became a self-made millionaire by the age of 22.
He believes the average millionaire dabbles in 17 different businesses, ideas, concepts, enterprises and schemes and it’s not until the 18th try that you gets it right.
So, Aluxers, don’t beat yourself up if you’re once again trying a new idea… because you have at least 18 tries to get perfect it!
What can you add to our list of millionaire statistics? We’d love to hear from you.