Yahoo Finance published this article today about how the number of millionaires has increased again for the second year in a row. Phoenix Marketing International reports "in 2011, there were 5.94 million millionaire households, compared with 5.56 million households a year earlier, an increase of approximately 6.8 percent." The article also broke down which states had the most millionaires; Maryland topped the list with 7.22% of households being millionaires. The national percentage of millionaires hovers just over 5% now. Before the economic downturn in 2008, the peak percentage of millionaires in the nation was recorded at 5.25% in 2007. But I believe as the economy turns around and as we try to eliminate our debts, this percentage will be surpassed.
How they define millionaire status is a little different than my definition. I look at net worth, which is any assets you own, minus your liabilities. They only look at "investable or liquid assets" and exclude retirement accounts and real estate. If they used my formula, then I believe they would record an even higher number of millionaires. Either way, it doesn't matter how they record it, the fact of the matter is that the number of millionaires are increasing and we can be a part of this.
How they define millionaire status is a little different than my definition. I look at net worth, which is any assets you own, minus your liabilities. They only look at "investable or liquid assets" and exclude retirement accounts and real estate. If they used my formula, then I believe they would record an even higher number of millionaires. Either way, it doesn't matter how they record it, the fact of the matter is that the number of millionaires are increasing and we can be a part of this.
Think that millionaires only inherit their money? Then think again. If fact, in Thomas Stanley's book, The Millionaire Next Door, he points out that 80% of current millionaires are first generation rich! Meaning they worked their butts off and got the money all on their own. Only the "lucky" 20% inherited the money but believe me if they start doing poor people stuff they will become poor. The good news is, it works the opposite way too. If you're poor and start doing rich people stuff then you will become rich. It's not a hard concept at all! It's just hard to achieve because it takes sacrifice. To be a millionaire we must live below our means, budget, spend wisely and make good financial decisions. If we can all take these steps, the percentage of millionaires will skyrocket, all people will be more financially secure, giving will increase and the wealth of this nation will be restored and strong once again.
--A Future Millionaire
--A Future Millionaire
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