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Most of us dream about what it might be wish to have $1 million or extra. You could possibly retire early, purchase a stunning seashore home within the South of France and spend your life doing stuff you love. Or you would use that cash to assist your group develop or to offer humanitarian assist. The record of prospects appears countless, however how do precise millionaires spend their cash? These millionaire statistics have some solutions.

Let’s check out how millionaires made their cash and the way they use it.

Key Findings:

  • 21,951,000 individuals within the U.S. have a web value of $1 million or extra. 
  • Amongst all states, New Jersey has essentially the most millionaire households.
  • Solely 3% of American millionaires obtained an inheritance of $1 million or above.
  • Actual property makes up about 40% of a typical millionaire’s web value.
  • China, Japan, Germany, the U.Okay., France, and Australia added collectively have fewer millionaires than the U.S.
  • The everyday American millionaire owns simply one property (43%).

How Many Millionaires Are There within the US?

Information from the Credit score Suisse World Wealth Report exhibits that in 2020 there have been slightly below 30 million millionaires within the US.

The variety of millionaires elevated by over 3 million simply from 2010 to 2020.[1]
Trusted supply
Credit score Suisse Analysis Institute
Credit score Suisse Analysis Institute research long-term financial traits with a world influence.

Is a Millionaire within the High 1% of Individuals by web value?

Having a web value of $1 million is not going to put you within the high 1%. You’ll want a minimal web value of round $11.1 million to get into the 1% of Individuals by wealth.[2]

Which State Has the Most Millionaires?

New Jersey has the very best fee of millionaires, with 9.76% of households exhibiting a web value of $1 million or above. That signifies that 246,058 New Jersey households are millionaires.[4]

How Millionaires Make, Develop, and Spend Their Cash

Let’s check out how individuals received to change into millionaires and the way they select to take a position and spend their cash.

How Many Millionaires Inherited Their Wealth?

21% of millionaires obtained some inheritance, however solely 3% obtained an inheritance of $1 million or above. 79% of millionaires didn’t obtain any inheritance from their household or kin. 8 out of 10 millionaires come from low-income households.[3]

% of millionaires that inherited their wealth

Did Millionaires Get Wealthy Due to Their Revenue?

The vast majority of millionaires didn’t change into rich due to their six-figure wages. Actually, 93% of millionaires polled by Ramsey Options claimed they didn’t change into wealthy as a result of their wage however somewhat by working exhausting and avoiding debt. Solely 31% of respondents surveyed had a $100,000 annual earnings at a while of their careers. One-third by no means made $100,000 a yr at any level of their profession.[3]
Trusted supply
Ramsey Options
Ramsey Options, based by private finance character and radio present host Dave Ramsey, is a media firm providing monetary training and steerage.

% of millionaires with six-figure earnings at a while of their careers

What Proportion of Millionaires Have Liquidity?

Solely 27% of millionaires have liquidity. This makes good sense as millionaires put money into a number of classes of financial and bodily belongings, resembling shares, mutual funds, retirement accounts, and actual property, to guard and develop their wealth.[5]

% of millionaires which have liquidity

What Are the Kinds of Investments Made by Millionaires?

40% of a median millionaire’s belongings include actual property. That’s partly as a result of actual property is usually a nice funding and partly as a result of US property values are very excessive. Many millionaires have a major proportion of their wealth tied up of their main residence. In California, for instance, the typical house worth is virtually $800,000, which places a median home-owner 80% of the way in which towards being a millionaire!

Company equities and mutual fund shares (40%) are one other most well-liked funding.[6]

How Many Properties Does the Common American Millionaire Personal?

Though many individuals think about millionaires proudly owning numerous properties, the typical American millionaire prefers to personal solely one property (43%), with solely 8.5% of the millionaire in the united statesowning 4 properties or extra.[7]

Does the US Have the Most Millionaires?

Analysis achieved by the Credit score Suisse Analysis Institute states that the nation with the very best variety of millionaires is the U.S., with almost 30 million millionaires and 17 million individuals with wealth as much as $5 million! To place numbers in perspective, China, Japan, Germany, the U.Okay., France, and Australia added collectively have a complete of 17 million millionaires![1]
Trusted supply
Credit score Suisse Analysis Institute
Credit score Suisse Analysis Institute research long-term financial traits with a world influence.

Is a Millionaire Wealthy?

For many of us – particularly these of us who aren’t millionaires – the phrase “millionaire” conjures up pictures of spectacular wealth. However is a millionaire actually wealthy?

Most Individuals don’t suppose so. The 2022 Charles Schwab Fashionable Wealth Survey discovered that Individuals see a web value of $2.2 million because the minimal to be thought-about “rich”, and {that a} web value of $774,000 is required to be “financially snug”.

These figures get even greater in main city areas.

Being a millionaire doesn’t essentially imply you will have a substantial amount of disposable wealth, particularly if you happen to stay in a high-cost surroundings. In case your web value is primarily in your main residence you would even be financially burdened regardless of being a millionaire, particularly in case your property taxes are excessive and your earnings is proscribed!

“Millionaire” is a handy time period to explain rich individuals, however wealth isn’t nearly web value, particularly when inflation is excessive. Revenue, debt, and price of residing all make a distinction in defining whether or not an individual might be thought-about “wealthy”.