A self-made millionaire shares 8 money secrets rich people know that 'most of us don't' (2024)

FAQs

What percentage of US millionaires are self-made? ›

A study published by Wealth-X found that around 68 percent of those with a net worth of $30 million or more made it themselves. Further, a second study by Fidelity Investments found that 88 percent of all millionaires are self-made, meaning they did not inherit their wealth.

They Grow Their Money, Not Businesses

Self-made millionaires tended to rely on capital appreciation from investments — as well as salary, stock options and profit-sharing. Those who inherited their wealth were more likely to cite entrepreneurship or real estate.

Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.

In my thirty-plus years of surveying and studying millionaires, I have consistently found that 80 to 86% are self-made. That also applies to decamillionaires. In 1982 according to Forbes about 38% of America's wealthiest people were self-made.

In fact, many famous billionaires actually grew up poor. From George Soros to Larry Ellison to Oprah Winfrey, here's a look at how some of the wealthiest people on the planet came up from nothing. Billionaires aren't all born with silver spoons in their mouths. In fact, many came from nothing at all.

The richest self-made woman for the second year in a row is Rafaela Aponte-Diamant of Switzerland. She cofounded and co-owns MSC, the world's largest shipping line and clocks in as the world's 48th richest person, worth an estimated $33.1 billion.

Depending on whose survey and how they measure it, between 70% and 92% of millionaires in the United States came from families that were not considered rich or wealthy. Some base this on their families having a net worth of less than $1 million and some base this on the primary bread winner not have a high income job.

United States

The U.S. is home to the most millionaires of any country by a large margin. In fact, nearly 9% of U.S. adults are millionaires today. This makes sense, as the United States has the world's largest domestic economy. The U.S. also has more lenient taxation policies than many of its competitors.

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.

What wealth puts you in the top 1%? ›

You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.

Nonetheless, not just anyone can be a mini-millionaire. Mini-millionaires, whom Zumburn describes as “upper middle class” rather than rich, typically make between $150,000 and $250,000 per year. That's more income than that of fourth fifths (78.9% to be exact) of U.S. households in 2022.

Real estate

And in a 1 percenter world, penthouses and waterfront mansions can help protect or launder your fortune. A recent Times investigation into one Manhattan property found that more than 200 shell companies had purchased units in the building, including corporate fronts for 17 billionaires—and Tom Brady.

After piling up billions in business, he pledged to donate almost all of his money to causes before he died. He succeeded, and then lived a more modest life. Charles F.

The average IQ of self-made deca-millionaires (over $10M net worth) is 118. The average IQ of self-made* billionaires is 133. The average IQ of self-made deca-billionaires (over $10B net worth) is 151. Of note, average incomes correlate well with IQ, however there is a much lower correlation between IQ and net wealth.

Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.

I spent five years studying and interviewing 233 millionaires to learn about their habits and the way they think. Work was a big topic: 51% were entrepreneurs, 28% had traditional 9-to-5 jobs, and 18% were senior-level executives at large companies.

Thought The Vast Majority Were Self-Made Millionaires

However, based on this data, it appears that at least 28% (Legacy wealth), and possibly up to 74% (Legacy wealth + Head start) of these millionaires, received significant financial support to get them to above $3 million in investable assets.