I woke today with a weird thought of the term - "A Millionaire". What qualifies a millionaire? Is it the amount of money in his bank account, or is it something else? Is it the size of his Real Estate?
There are ways to rack up millions in your bank account, like saving for 20 years until your savings hit the million mark. Does that make this person a millionaire? There is also the option of investing in something that brings in money, and if you grow the pot large enough, every influx is in the millions. Which is the true definition of a millionaire?
While writing this article on my commute, I decided to ask the reliable Internet for the definition of a millionaire. I learned it isn't necessarily about the cash at hand but about the net worth of a person. When you sum up everything about a person minus liabilities, is it a million worth?
An excerpt from an article I read on The Roots website below describes the life of a millionaire in simple terms.
So how do you become a millionaire? Contrary to the common perception, the typical American millionaire lives a moderate lifestyle. A recent Washington Post article provided surprising characteristics about America’s millionaires. Their median income is $131,000 and their average home price is $320,000. The everyday millionaire is a saver. Only 20 % of them received their wealth from inheritance. Over recurring pattern is that millionaire's are scrupulous with their money. Very few of them drive foreign cars and most work regular jobs or operate small businesses. They are literally the millionaires next door and they’ve gotten here because they understand that just because you can, doesn't mean you should. -
Not exactly sure where I was going with this writing, but personally I can take out one thing - net worth. One may not have a million bucks drop in monthly, but surely enough to lead a comfortable life is welcomed. Building a business is a quick way to hit the million mark compared to saving over 20 years.
This is a note for me to consider taking a financial course. With the way the world is going and the cost of living rising, one needs a plan beyond a pension pot for life after retirement. Financial knowledge is vital and desirable for Millionaire status if you ever considered or envied such a lifestyle.