The rise of 'mini-millionaires' (2024)

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Ramsey told Von about a 2023 Ramsey Solutions survey, which quizzed 10,000 millionaires across the U.S. to find out what they do for work and how they built their wealth.

Mini-Millionaires Are Where Wealth Is Growing Fastest,” Wall Street Journal, Oct. 27, 2023. Average family wealth was over $1 million in 2022 and growing faster than that of the top 1%.

Most wealthy households accumulate wealth over time, and only hit high thresholds in later middle-age or retirement age. Most mini-millionaires — $5 million or more in assets — are individuals or couples over 55 who earned between $150,000 and $250,000 in their peak earning years and gradually accumulated wealth.

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.

Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

Millionaires — those who have a net worth of at least $1 million —are, perhaps not surprisingly, on the older end. They're predominantly 55 and older; just 2.4% are under the age of 35.

About 16 million American families have wealth exceeding $1 million, up from 9.8 million families in 2019, and nearly 8 million families have wealth exceeding $2 million, up from 4.7 million.

Only 5% of millionaires are under 40. Only 1% are 30 or younger. The average age of all millionaires is 62. Don't forget this on your way to financial freedom.

Millionaires Are Made, Not Born

In fact, the majority of millionaires didn't even grow up around a lot of money. According to the survey, 8 out of 10 millionaires come from families at or below middle-income level. Only 2% of millionaires surveyed said they came from an upper-income family.

Which sibling is most likely to be a millionaire? ›

The research found that the youngest sibling in a family is way more likely to take risks in their developing careers, and thus end up far more successful and way more likely to be a millionaire.

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.

The upper class has an average net worth of $793,120 to $2.65 million, while the lower class has $16,900. The middle class ranges from $58,550 to $300,800. You can grow your net worth by saving and investing consistently, investing in the stock market, and being careful about taking on debt.

There is no college degree that will make you a millionaire. Did you know Dave Ramsey got a 2.93 GPA in college and he is one of the most successful people in the world financially. We focus on School, College, and degrees.

Ninety-three percent of millionaires said they got their wealth because they worked hard, not because they had big salaries. Only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures in any single working year of their career.

A striking 88% of millionaires graduated from college, far surpassing the 38% in the general population. Impressively, over half (52%) of the millionaires in the study held master's or doctorate degrees, compared to just 13% of the general populace.