2022 Forbes 400 Methodology: How We Crunch The Numbers (2024)

FAQs

How is the Forbes list calculated? ›

Forbes' self-made score rates each member of the list on a scale of 1 to 10. A score of 1 is given to those who inherited their fortune and have not worked to increase or manage it. A score of 10 is given to those who both grew up poor and overcame significant obstacles.

The score ranges from 1 to 10, with 1 to 5 meaning an individual inherited most of his or her wealth and 6 to 10 meaning he or she built their company or established their fortune. In 1984, less than half the people on The Forbes 400 were self-made; in 2023, 70% have created their own riches.

Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900. These figures illustrate a dramatic wealth gradient in the U.S., indicating a substantial increase in net worth needed to move from the top 10% to the top 2%.

In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.

The editors estimate subjects' wealth from a range of public information, based on values in January each year. They typically explain their actions by stating: "We measure identifiable wealth, whether land, property, racehorses, art or significant shares in publicly quoted companies.

That's why, to better contextualize the nation's great fortunes, in 2014 Forbes began assigning each billionaire a self-made score. The score ranges from 1 to 10, with 1 to 5 meaning an individual inherited most of his or her wealth and 6 to 10 meaning he or she built their company or established their fortune.

In my thirty-plus years of surveying and studying millionaires, I have consistently found that 80 to 86% are self-made. That also applies to decamillionaires. In 1982 according to Forbes about 38% of America's wealthiest people were self-made. In 2012, the percentage jumped to 70%.

Clemente became the world's youngest billionaire at age 18, but he has since lost that title by a two-month age difference with the newest 19-year-old who took the title in 2024.

A study published by Wealth-X found that around 68 percent of those with a net worth of $30 million or more made it themselves. Further, a second study by Fidelity Investments found that 88 percent of all millionaires are self-made, meaning they did not inherit their wealth.

There are estimated to be a little over 8 million households in the US with a net worth of $3 million or more.

How many $100 millionaires are there in the US? ›

5.3 million millionaires with a net worth of at least $1 million. 9,630 centi-millionaires with a net worth of at least $100 million. 770 billionaires with a net worth of at least $1 billion.

Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.

Household wealth or net worth is the value of assets owned by every member of the household minus their debt. The terms are used interchangeably in this report. Assets include owned homes, vehicles, financial accounts, retirement accounts, stocks, bonds and mutual funds, and more.

The 95th percentile, with a net worth of $3.2 million, is considered wealthy, facilitating estate planning and possibly owning multiple homes. The top 1%, or the 99th percentile, has a net worth of $16.7 million and represents the very wealthy, who enjoy considerable financial freedom and luxury​​.

U.S. wealth percentiles provide clearer picture of where you rank. According to Schwab's 2023 Modern Wealth Survey, its seventh annual, Americans said it takes an average net worth of $2.2 million to qualify a person as being wealthy.

Besides wealth, we also ranked each member based on their lifetime charitable giving (see more here) and the degree to which their fortunes are self-made or inherited (see more here).

As with all Forbes lists, companies pay no fee to be considered.

Forbes doesn't know the exact net worth of the individuals on their list, their net worth is estimated through research about how much stock they own in their companies, how much their house is worth, jewelry, yachts, planes, etc. So it's not an exact figure, just a very good estimate.

Each year, Forbes partners with market research company Statista to measure up the leading employers around the country and the world by asking those in the best position to say: the workers.