Is the American dream still alive today? Can you build wealth that lasts in this economy? These are questions I hear all the time. And I want you to know the answer to them is yes! The American dream is alive and well.
If you know me, you know I like busting the myth that millionaire status is out of reach for most Americans. That’s right, people! It’s not impossible to become a millionaire in today’s economy.
But it does take a change of mindset.
“Normal” people will say you need to borrow money and use debt for today’s society to function. False! You’ll also hear that you’re “not truly living” if you decide to skip a vacation or renovation project to pile up money for a far-off savings goal. The truth is you work too long and too hard to have nothing to show for it in retirement except for a measly social security check that barely covers a can of dog food.
Be confident about your retirement. Find an investing pro in your area today.
Listen up! We all have the resources available today to form a game plan that could make us millionaires. Don’t believe me? I’m going to show you how many people around you have already reached millionaire status.
How Many Millionaires Are in the U.S.?
Do you know how many millionaires are in the U.S. today? The answer is there are about 11 million millionaire households, according to Spectrem Group’s Market Insights Report 2017.(1) And that number is growing.
There are about 11 million millionaire households, according to Spectrem Group’s Market Insights Report 2017.(1)
Here’s the thing: Millionaires don’t look the way you probably think they do. It might surprise you to find out there are everyday millionaires living among you. Heck, you might’ve even passed one in the grocery store! If that sounds bizarre, wait until you hear what I’m about to say next: You can join them.
That’s right, people. I’m here to tell you that you could be the next millionaire! My team and I recently worked on the largest study of millionaires ever conducted and discovered most millionaires are ordinary, everyday people who follow basic money practices. We published the research in my new book, Everyday Millionaires: How Ordinary People Built Extraordinary Wealth—and How You Can Too.
What Is a Millionaire?
If you can’t tell, this topic gets me excited! So before I get ahead of myself, let me define what millionaire actually means. A millionaire is someone who has a net worth of a million dollars. Net worth is what you own minus what you owe. For example, suppose you have no debt besides a mortgage, a sizable emergency fund and a retirement account. Subtract what’s left of the mortgage debt from everything else and you’ll know your net worth.
A millionaire is someone who has a net worth of a million dollars. Net worth is what you own minus what you owe.
The majority of a person’s net worth usually includes money invested in a retirement account or real estate. While Spectrem Group doesn’t count a primary home as part of the assets of their 11 million U.S. millionaires, I think it only makes sense to include your home as part of your net worth. So when you look at it that way, there are way more than 11 million millionaires living in the U.S. today.
If you want to dig deeper into your personal net worth, use my free tool—the Net Worth Calculator. It’s quick, it’s simple, and it suggests the next steps for your unique situation.
How Long Does it Take to Become a Millionaire?
Okay, so how fast are our fellow Americans becoming millionaires? Well, these people didn’t magically wake up one day with a net worth of $1 million. No sir. They were focused and intentional. It takes decades of working, saving and investing to become a millionaire. In fact, only 5% of the millionaires we surveyed for my new book got there in 10 years or less. It took most of them an average of 28 years to hit the million-dollar mark, and most of them reached that milestone at age 49.
It took most millionaires an average of 28 years to hit the million-dollar mark, and most of them reached that milestone at age 49.
Which States Have the Most Millionaires?
If there are more than 11 million millionaires in the U.S., some of them must be in your state. Right? You’re about to find out! We used the research from our study to break down the number of millionaire residents in each state. It shouldn’t surprise you to learn that California and New York are the top two states populated with millionaires. But if you don’t live anywhere close to those places, take a look to see if your state made the top 10. Here are the states with the most millionaires:
- New York
- New Jersey
If your state doesn’t make the top 10 list for number of millionaires, don’t worry. Just because there are fewer millionaires in your state, it doesn’t mean you have less of a shot at becoming one. In fact, your state might just have a lower population than other states, which could be the reason for a lower number of millionaires. So let’s look at this in a different way. My team also collected data to find which U.S. cities have the most millionaires based on percentage of the population. Here’s the top 10:
- New York, NY: 8.51%
- Los Angeles, CA: 5.34%
- Chicago, IL: 4.45%
- San Francisco, CA: 3.46%
- Washington, D.C.: 3.36%
- Philadelphia, PA: 3.26%
- Phoenix, AZ: 2.97%
- St. Louis, MO: 2.37%
- Tampa, FL: 1.88%
- Orlando, FL: 1.68%
Did you realize how many millionaires are in or around these cities? Well, now you know. If you’re still not convinced it’s possible to achieve millionaire status where you live, I want you to see what our research has to say about where millionaires live. Here’s what we found:
- More than 50% of millionaires live in a neighborhood where the average household income is below $75,000 a year.
- Nearly one-third of millionaires live in a zip code where home values are below the national median average ($205,000 or less).
- Six out of 10 millionaires live in a house valued under $500,000.
Can you relate to any of those numbers? With stats like that, it’s likely there are millionaires in your neighborhood and you don’t even know it!
Ready to Join These Everyday Millionaires?
Yes, you can join these everyday millionaires. How? It’s all about controlling your money! It’s that simple. You tell it where to go. You make a written plan and get intentional about it! If you’re ready to build wealth, the first step is to talk to an investing professional and get serious about creating a plan. Don’t know if you can trust people to manage your money? I recommend investing professionals who share the financial values I teach through our SmartVestor program. Find an investing pro today!
About Chris Hogan
Chris Hogan is a #1 national best-selling author, dynamic speaker, and financial expert. For more than a decade, Hogan has served at Ramsey Solutions, spreading a message of hope to audiences across the country as a financial coach and Ramsey Personality. Hogan challenges and equips people to take control of their money and reach their financial goals through national TV appearances, The Chris Hogan Show, and live events across the nation. His second book, Everyday Millionaires: How Ordinary People Built Extraordinary Wealth—And How You Can Too, is based on the largest study of millionaires ever conducted. You can follow Chris Hogan on Twitter and Instagram at @ChrisHogan360 and online at chrishogan360.com or facebook.com/chrishogan360.