Millionaires And You
Personal wealth in the United States has never been higher than it is now, with over $22 trillion in
1996. However, the majority of Americans lack wealth. 3.5 percent of our households own nearly
half of our wealth. A large portion of the other
families don't come close. We are not referring to economic dropouts when we say "other
households." The majority of these millions of households have members with moderate to high
incomes. In the United States, more than 25 million households have annual incomes greater than
$50,000; Over seven million people earn more than $100,000 per year. However, despite earning
"good income," too many of these individuals have accumulated little wealth. Many live from one
check to another. This book will be most helpful to these people.
The middle (regular) family in America has a total asset of not exactly
$15,000, barring home value. Guess what happens when equity in furniture, cars, and other items is
taken into account? The household rarely possesses any financial assets, like stocks or bonds.
How long would a typical American household be able to survive financially without a paycheck
each month?
In most cases, probably one to two months. Even those in the highest quintile do not really have
much money. Their average net worth as a household is less than $150,000.
The median net worth for this group drops to less than $60,000 when home equity is excluded. And
what about our elderly population? Without Government backed retirement benefits,
close to one-half of Americans north of 65 would live in neediness.
Even the most standard types of financial assets are only available to a small percentage of
Americans. A money market deposit account is only available to about 15% of households in the
United States; a deposit certificate for 22%; a money market fund at 4.2%; 3.4%, municipal or
corporate bonds; less than 25%, mutual funds and stocks; 8.4%, rental properties; United States
Savings Bonds, 18.1%; and IRAs or KEOGH accounts for 23%.
However, over 85% of households own one or more motor vehicles and 65% have equity in their
homes. Automobiles usually depreciate quickly.
Financial assets usually rise in value.
In this book, we talk about millionaires who are financially independent. They could live the way
they are now for many years without earning even a month's pay. The vast majority of these
millionaires do not come from Rockefeller or Vanderbilt families. Over 80% are common people
who have accumulated wealth in a single generation. They did it slowly and steadily without
becoming the next Mick Jagger, winning the lottery, or signing a multimillion-dollar contract with
the Yankees. The news about windfalls is great, but they rarely happen. A person's chance of
becoming wealthy over the course of their adult life is less than one in four thousand. These odds
are in stark contrast to the 3.5 percent of American households with a net worth of more than $1
million.
The SEVEN FECTORS
Who rises to wealth? Most of the time, the wealthy person is a businessman who has always lived in the same town. This person is the owner of a small factory, a retail chain, or a service business. He has been married before and is still married. People with a fraction of his wealth live next door to him. He is
an enthusiastic saver and financial backer. Additionally, he has generated his own income. Eighty
percent of America's tycoons are original rich.
People who have a lot of money typically lead lifestyles that help them accumulate wealth.
During the course of our research, we discovered seven commonalities among successful wealth builders
1. They make very little money..
2. They spend their time, effort, and money in a way that helps them accumulate wealth.
3. They hold the belief that achieving financial independence is more significant than exhibiting high social status.
4. Their folks didn't give monetary short term care.
5. Their adult children are financially independent.
6. They know how to find market opportunities well.
7. They picked the right occupation.
