A high income is not the same as wealth. Those who make a high income (play great offense) but spend it all (play poor defense) are collectors of expensive artifacts.
Millionaires have a net worth of a million dollars or more:
(Assets – Liabilities = $1,000,000)
A common stereotype for a typical millionaire is someone who has been given a massive trust fund, plays in the NFL, or won the lottery. But that would be an incorrect perception.
Here is a list of the top professions for millionaires:
- 74% of millionaires are small business owners / entrepreneurs.
- 10% are professionals in their field (doctors, lawyers, dentists, CPA’s).
- 10% are CEO’s and executes.
- 5% are consultants.
- <1% are professional athletes, movie stars, lotto winners, etc.
80% of millionaires are first-generation rich. They figured out how to save a $1, then $2, then $5, then $10 until they were no longer paying interest—they’re getting interest. They used money as a tool.
Admitting we have control over our financial welfare puts us on the hook. We are responsible for our own actions—that makes people uncomfortable. Most people would prefer to think a millionaire has something we don’t.