In the United States, there are around 24.5 million people who are millionaires. The United States is home to about 39.2% of all of the millionaires in the world. This is based on the number of people who have the equivalent of $1 million in U.S. assets.
There are about 336 million people in the U.S. With 24.5 million of them being millionaires, the odds that someone in the U.S. will end up a millionaire come in at around 7.29%.
Of course, some people are more likely to be among that 7.29% than others, including those who are born rich or who earn advanced degrees and go into lucrative professions. But, you don't have to be an heiress or a sports superstar to become a millionaire (although it helps). You can do a few simple things to increase your chances, including the following three moves.
1. Take steps to increase your income
One of the best ways to maximize your chances of becoming a millionaire is to take steps to earn more money over your lifetime. After all, the more you earn, the easier it is to invest in assets that will eventually generate $1 million or more of wealth.
You can earn more money by choosing your profession wisely, and by pursuing advanced degrees. Men who earn a bachelor's degree earn around $900,000 more in median lifetime income compared with males who have only a high school diploma. Women with bachelor's degrees earn $630,000 more in median income than their peers with just high school degrees. And men and women with graduate degrees will earn $1.5 million and $1.1 million more respectively, compared to high school graduates.
If you make hundreds of thousands or millions of dollars more over your lifetime, it will be a lot easier to do the things needed to achieve millionaire status -- like supercharging your savings.
2. Save early and often
You can also significantly increase your chances of becoming a millionaire by saving as much as you can and saving steadily. This is true no matter how much income you make.
Let's say you start saving at age 20. To have $1 million by age 65, you'd only have to invest $115.91 a month to achieve millionaire status (assuming a 10% average annual rate of return, the approximate 50-year average return of the S&P 500). If you waited until age 45 to invest, you'd need to invest $1,454.96 per month instead.
If you start saving at a young enough age, your odds of becoming a millionaire are increased significantly since it's a lot more feasible to find a couple hundred dollars to save monthly than it is to find a couple thousand. You could have a great chance of ending up with a seven-figure nest egg if you make consistent investments over a long time.
3. Invest wisely
Finally, you'll need to invest wisely. This means putting money into a brokerage account and investing some of it in the stock market so you stand a chance to earn the returns you'll need to become a millionaire.
If you invested your $115.91 a month starting at age 20 but you earned just a 3% rate of return because you kept your money in a savings account, you'd only have $127,957.19. You need compound growth to work for you (which is what happens when you invest, earn returns, and those returns are reinvested to earn you more money).
The good news is, you don't need to pick stocks to invest wisely. Just put your money into an ETF tracking the S&P 500, a financial index of 500 large U.S. companies that has produced 10% average annual returns over the long run.
While the overall odds of someone in the U.S. becoming a millionaire are about 7.29% based on the percentage of the population with that much money, you can increase your odds significantly if you just take these simple steps.
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FAQs
While the overall odds of someone in the U.S. becoming a millionaire are about 7.29% based on the percentage of the population with that much money, you can increase your odds significantly if you just take these simple steps.
How hard is it to become a millionaire? ›
Even with a $150,000 starting investment, it would still take you 22 years to reach the $1 million mark. Of course, with the use of the steps already mentioned, plus consistent determination, diligence and perseverance, you can reach your goal of becoming a millionaire even more quickly than the previous example.
Is a millionaire in the 1%? ›
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
How common is a millionaire? ›
Millionaires comprise about 8.8% of the American population. The average net worth of a millionaire in the U.S. is $2.2 million, according to Charles Schwab's 2022 Modern Wealth Survey. New Jersey boasts the highest rate of millionaires, with nearly 10% of households having a net worth of $1 million or above.
How rare is it to be rich? ›
In fact, most Americans are unlikely to ever become a millionaire. Estimates vary, but they range from about 12 million to 24 million millionaires in America. While that sounds like a lot, even the upper limit of that range is less than 10% of the approximately 332 million people in the U.S.
What do 90% of millionaires do? ›
Real estate investment is not a get-rich-quick scheme. Instead, it's a long-term strategy that can steadily build wealth over time. As you continue to own and manage properties, their value appreciates, and your equity grows.
What age is too late to become a millionaire? ›
It's never too late for anything in life — not even to become a millionaire as you're approaching your golden years.
Is $10 million enough to retire at 60? ›
Of course you can retire with $10 million! Thousands of Americans do it every year with far, far less. If you can't retire with $10M, then your problem isn't your money, it's your lifestyle.
What is a good net worth at 40? ›
Average net worth by age
| Age by decade | Average net worth | Median net worth |
|---|
| 30s | $277,788 | $34,691 |
| 40s | $713,796 | $126,881 |
| 50s | $1,310,775 | $292,085 |
| 60s | $1,634,724 | $454,489 |
4 more rowsThen there's the sky-high cost of housing and childcare, not to mention ever-growing student loan debt. Even when millennials do hit six figures in income, they have so many other expenses that they're still living paycheck to paycheck.
Sometime around age 50, the average American can now expect a household net worth exceeding $1 million. How did so many 50-somethings become millionaires? Household wealth swelled at a record pace during the pandemic.
What age group are most millionaires? ›
Americans between 50-54 have an average net worth of $1.13 million; while those in the 55-to-50 age group have an average net worth of $1.44 million, according to USA Today. In comparison, for people in their 20s, the average net worth is $120,896 for those aged 20-24 and $120,185 for those aged 25-29.
What is the average age to become a millionaire? ›
The average age of millionaires is 57, indicating that, for most people, it takes three or four decades of hard work to accumulate substantial wealth.
How rich is the average person? ›
The average American net worth is $1,063,700, as of 2022. Net worth averages increase with age from $183,500 for those 35 and under to $1,794,600 for those 65 to 74. Net worth, however, tends to drop for those 75 and older.
Is being rich worth it? ›
Being rich may sound like the dream, but it's not a guarantee for long-term financial security. To truly secure your financial future, it's important to aim for wealth. Wealth provides a sense of financial freedom and stability that being rich cannot always offer.
What is considered wealthy? ›
According to Schwab's 2023 Modern Wealth Survey, Americans perceive an average net worth of $2.2 million as wealthy. Knight Frank's research indicates that a net worth of $4.4 million is required to be in the top 1% in America, a figure much higher than in countries like Japan, the U.K. and Australia.
How long does it realistically take to become a millionaire? ›
The time it takes to become a millionaire depends on how much you save and the return you get on your money. If you invest $1,000 per month and get an 8% annual return, you'll be a millionaire in 25.5 years. The key to being a millionaire is to start investing right away and to be consistent about it.
Why is it so hard to become a millionaire? ›
It's Almost Impossible
“More often than not, luck also plays a role,” she explained. “Wealth accumulation usually demands time, disciplined saving and savvy investing, like starting up something of one's own.” She added that many millionaires accumulated wealth on their own, often with diverse income streams.
Can an average person be a millionaire? ›
Sometime around age 50, the average American can now expect a household net worth exceeding $1 million. How did so many 50-somethings become millionaires? Household wealth swelled at a record pace during the pandemic.
