Guess what percentage of households have more than $1 million? The number of millionaires might shock you

Guess what percentage of households have more than million? The number of millionaires might shock you

Many people dream of joining the millionaires club, and that dream has become a reality for many Americans.

According to the latest data from the Federal Reserve from the end of 2022, the number of millionaire households in the United States is increasing – and it’s not just inflation that makes the numbers seem larger. Even adjusted for inflation, the share of households with net worth of at least $1 million jumped from 2019 to 2022 after remaining relatively flat for nearly two decades.

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So how many millionaires are there out there? According to the Federal Reserve’s 2022 survey, about 18% of U.S. households had a net worth of at least seven figures. That’s around 23.7 million millionaire households across the country. And with the stock market and real estate values having performed strongly since then, even more households are likely to become millionaires in 2024.

While these numbers are exciting, they also offer some interesting insights into building this type of wealth. Millionaire households have certain characteristics that provide clues to increasing their net worth.

See also: I’m 62 years old and have $1.2 million saved. Is that enough for a stress-free retirement?

Common Characteristics and Characteristics of Millionaire Households

Most millionaires do not fit the luxury stereotype. Many built their wealth through disciplined saving and investing, often in employer-sponsored retirement accounts like 401(k)s. About 70% of millionaires have accumulated their wealth this way, and a surprising 73% have never had a credit card balance. Most aren’t high earners either – most haven’t earned six-figure salaries over the course of their careers.

According to MillennialMoney, most millionaires are between the ages of 60 and 79, showing that it takes time for most people to accumulate wealth.

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Real estate also plays a large role, with primary residence accounting for about 32% of a typical millionaire’s net worth. Millionaires also value education: over 60% have degrees from public universities and only 8% from Ivy League schools.

Another feature is saving. Millionaires often live below their means and prioritize saving over spending. This discipline helps them build their wealth while avoiding lifestyle inflation – the temptation to spend more as income increases.

Many millionaires also have multiple sources of income. Whether through investments, side businesses or varied career paths, they are not dependent on a single source of income.

See also: Many use this retirement income calculator to check if they are on the right track – Here’s a breakdown of what’s behind this formula.

What does this mean for you?

While these habits can serve as a guide, building wealth is not a one-size-fits-all process. If you aspire to millionaire status, consulting with a financial advisor can help you develop a strategy that fits your lifestyle and goals. A professional can help you choose investments that fit your risk tolerance and financial timeline—because let’s face it, making a million is easier when you get expert advice along the way.

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This article: Guess what percentage of households have more than $1 million? You Might Be Shocked By The Number Of Millionaires originally appeared on Benzinga.com

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