The Top Ten Assets Owned by Millionaires - The Millionaire Next Door (2024)

FAQs

What are the 7 factors of The Millionaire Next Door? ›

The authors talked about the seven most common traits that showed up among those that have accumulated wealth. Those common traits are the following; high income, low expenses, frugal, wealthy, breaking even (Spartan), spender, broke, and breaking even (Lavish).

Simply stated your household's net worth should equal 10% of the age of the main breadwinner times your household's annual realized income [adjusted gross income is a good substitute]. In short it is 10% X Age X Income = Expected Net Worth.

Real estate has created the most millionaires in the U.S., thanks to property appreciation, rental income, and the ability to leverage investments. According to Forbes it's stock trading.

Including primary home equity, $10 million net worth is in the 98.5 percentile in 2016, or around 629,908 households. Given the average of a little less than 3 people (2.58 people) per household, 1,625,162 Americans roughly. Not including primary home equity, that number goes down to the top 1 percentile.

Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.

Ninety percent of all millionaires become so through owning real estate.

90% of millionaires made their money in Real Estate. I became a millionaire without owning a single property. But I own 6 small businesses that make me $725k/year.

What Is the Most Valuable Asset by Market Cap? The answer to what asset has the highest market cap actually isn't a company: Gold has the highest market cap in the world.

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

What net worth is considered upper class? ›

Upper-middle class: $269,100. Upper class: $805,400.

In the United States, the concept of being rich is often a subject of discussion, curiosity and, sometimes, aspiration. Charles Schwab's 2023 Modern Wealth Survey provides insights into this topic, revealing that the average American equates being wealthy with a net worth of approximately $2.2 million.

One of the main lessons of "The Millionaire Next Door" is the importance of living below your means. This means spending less than you earn, and saving and investing the difference. According to the authors, this is a key characteristic of those who are able to accumulate significant wealth over their lifetimes.

The authors' research revealed that most millionaires live below their means, prioritize financial management, and avoid unnecessary luxury. These traits, often overlooked, are essential for long-term financial security and success.