So much of what we’re told about wealth and the wealthy is in the vein of: the wealthy are scumbags who cheated and lied for their wealth. Or they were pampered and gifted it by spoiling parents. In short, they don’t deserve it. They have been unworthy beneficiaries of a rigged system.
In his book, Hogan lays out the research and statistics for the everyday millionaries in this country. There are more millionaires than ever. Where did they come from? How did they gain their wealth? What are their habits? What kind of people are they?
The statistics, gathered from surveys of net worth millionaires across the United States, from every state, major city, rural to metro areas, and many backgrounds, paint a much different picture than the mainstream lambasting of the wealthy that you normally here.
Here are some points worth remembering for me:
- Millionaires believe that they can be millionaires. Then they work to get it done. This requirements are available to all and required by all to realize the same outcome.
- 79% received no inheritance at all. 16% more than $100k. 3% over $1M.
- 48% from middle class parents. 27% lower middle class. 4.25% lower class.
- 79% of millionaires credit employer-sponsored retirement plans like 401ks as a major part of their ability to become a millionaire.
- It takes decades to become wealthy. The average millionaire reaches this status at 49 years old.
- 9 out of 10 have never taken out a business loan
- 80% have never borrowed money from friends
- Not a single respondent in 10k surveyed cited single stocks as a top 3 wealth-contributing factor.
- Most go to college, 88% with a bachelors.
- Only 18% have their own business. Most work for others.
- Top 3 respondent jobs were engineer, accountant, teacher.
- Most don’t attend presitigeous schools, 62% from public state schools, 8% community college, 9% no college.
- 68% never took out any student loans
- 1/3 of all respondents never had more than $100k salary in one year in their whole career. 31% veraged $100k per year, 7% above $200k.
- 68% use a financial planner
- 94% live on less than they make
- 95% save up for upcoming big expenses
- 93% use coupons when shopping
- 85% use a shopping list when buying groceries
- 82% have no car payments
- Average millionaire drives a 4-yr old car with 41k miles
- 73% of millionaires have never carried a credit card balance
- 70% save more than 10% of income over working years
- Average millionaire lives in a 2600-sq ft home, for the past 17 years
- Average of 10.2 years to pay off home. 67% are fully paid off.
- 96% enjoyed their jobs. 64% loved their job.
- 80% exercise 3 times a week.
- 70% are early risers
- 6% give monthly support to adult children. 71% never do.
- 8% have adult children living at home with them.
- 63% in first marriage, 75% married for 32 years on average.
- 91% say their marriage is good or great.
- 75% invest consistently.
Throughout the book he highlighted millionaires who made it to that status. None had it handed to them. They all worked with discipline and consistency. They have impressive stories, and it takes impressive effort. The opportunity is open to you and me.