What Do 90% of The World's Millionaires Have in Common? (2024)

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What Do 90% of The World's Millionaires Have in Common? ›

Real estate investing has played a role in helping to create 90% of the world's millionaires. Real estate is one of the most effective wealth building vehicles and is an important component of a well-diversified portfolio.

Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings. In this article, we delve into the reasons why real estate is a preferred vehicle for creating millionaires and how you can leverage its potential.

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

In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.

The top 1% of household net worth in the U.S. was just shy of $13.7 million in 2023. An individual would have to earn an average of $407,500 per year to join the top 1%. A household would need an income of $591,550. The median household income was $74,580 in 2023 and $45,440 for individuals.

One thing that most rich people have in common is that they are risk-averse. At the same time, they always think big. Becoming wealthy means taking as little risk as possible to achieve as great a reward as possible.

According to the book “The Millionaire Mind,” the average college GPA of a millionaire was 2.9. They found no statistical correlation between economic productivity and academic performance. “Smarter” people tend to take less risk.

Millionaires prioritize avoiding consumer debt, making wise financial decisions, and aligning spending with long-term goals.

Do 90% of millionaires make over 100k a year? ›

Choose the right career

And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”

Federal Tax Benefits

The government encourages real estate ownership. Buying real estate often lowers your taxes. With depreciation, it can appear as though you're running at a loss. Even though you're making income, you have lower taxes and no self-employment tax on rental cash flow.

There are over 24.4 million people in the United States with wealth greater than $1 million, according to the Global Wealth Report by Credit Suisse. Possessing a net worth—the value of all of your holdings minus your liabilities—of $1 million will not automatically place you in the gilded top 1%.

Economics, finance, psychology, business management, and engineering are also popular subjects among Rich children. Upper Middle Class: The upper middle class is a social group made up of middle-class members with higher socioeconomic status.

In broader terms, the finance and investment profession has the most millionaires. It also has the most billionaires, with 371. Here's a list of the seven best careers if you want to be a millionaire.

Research has found that 88% of millionaires graduated from college, and 52% have a master's or doctoral degree. Education is linked to wealth, but there are also other contributing factors at play that aren't caused by education, such as family background.

Choose the right career

And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”

Here are the cold, hard facts: Almost 7 out of 10 millionaires (69%) did not average $100,000 or more in household income per year—and (get this) one-third of millionaires never had a six-figure household income in their careers.

These affluent individuals are typically the founders of large multi-national companies or the heirs to vast family fortunes. There are only 28,420 centi-millionaires in the world (as at June 2023), making this a very elite club.