This post is all about becoming a millionaire! The most thorough research EVER on millionaires was completed by Ramsey Solutions and an outside firm. The outside firm specializes in surveying and statistical sampling!
They used advanced surveying methods to conduct research on 10,000 millionaires across every race, religion, geographic location, and sex.
These are 10,000 people who have made it. This blog post isn’t merely about theory. This article is about displaying people who have ACTUALLY become millionaires and how they did it.
The research was rolled into a book called “Everyday Millionaires”, and it was authored by Chris Hogan (who is a partner in Dave Ramsey’s company, Ramsey Solutions).
The reason the book is called “Everyday Millionaires” is because the research on 10,000 millionaires definitively concludes that most millionaires in the United States are truly everyday people (teachers, firefighters, and medical assistants).
Similar research was performed in the early 1990’s, and it was used to write “The Millionaire Next Door”.
The “Millionaire Next Door” arrived at virtually the same conclusion as Chris Hogan’s book. Many detractors claimed that their sample wasn’t representative of the population.
The authors of the “The Millionaire Next Door” surveyed 750 people. Which is far greater than the necessary sample size needed to draw a conclusion about a population!
Unfortunately, a lot of readers were not familiar with the basic tenants of statistics. To avoid this fallacy, Ramsey Solutions scaled 750 into 10,000, so no one would be able to refute the clear, empirical evidence.
Before reading the rest of my article, watch the first few minutes of Dave Ramsey’s video (you will not regret it)!
If you ever want to become an everyday millionaire, you need to follow these best practices that have made people incredibly wealthy.
A final note for everyone to lay the groundwork. Millionaires were defined according to their net worth. Meaning, what they owned – what they owed > $1,000,000.
Key FACTS to remember:
79% of Millionaires Received No Inheritance
I can’t count how many times at school a teacher (usually in the social sciences) has said “The American dream is dead” or “The poor don’t have a chance”.
The American dream is far from dead, and this fact shows that people who receive an inheritance (the rich) are not likely to become millionaires. People who work hard, save diligently, and invest wisely are the ones who become wealthy!
70% of Millionaires Went to a Public University
Going to an elite, private school won’t make you wealthy. Most likely, it will saddle you with a ton of student debt, and you will receive the same job as someone who went to a public school.
You don’t need to go to Harvard, Stanford, or Penn to work at Goldman Sachs, Microsoft, or Google. I personally know people who went to the University of Iowa and and are working for all these employers. They did it by networking their butts off and getting good grades.
Check out this article about graduating from college debt free!
The Millionaires Paid Off Their Homes in an Average of 10.2 Years
This results from the fact that wealthy people buy homes they can afford. Wealthy people don’t buy homes on an adjustable rate mortgage for 30 years because “they can afford the payment”.
They buy a reasonable home and pay it off as fast as they can. They own their home; their homes don’t own them! Check out my article if you have a question about purchasing a home.
The Millionaires Haven’t Carried Consumer Debt in an Average of 20 Years
Debt is a killer, and the wealthy avoid it. Consumer debt includes credit card balances, car payments, and home-equity loans.
The wealthy pay cash for their purchases, and they don’t rationalize their purchases by being able to afford a payment. Debt absolutely devastates your ability to build any form of sustainable wealth!
97% of Millionaires Believe They Control Their Own Destiny
This is my favorite fact (by far)! I love when Dave Ramsey points out, “You will reap what you sow, and we live in a cause-and-effect world”. I could not agree more! Personal finances are 100% within your control. This is barring a major emergency, but that’s why you have insurance.
No one forced you to go to an expensive school, buy a ridiculous house, or finance your car. Millionaires know that the world is their oyster, and they control their own fate.
You cannot believe you are the victim of some system and participating in a rigged game! The research shows YOU WILL NOT BECOME A MILLIONAIRE!
Becoming A Millionaire
The whole conclusion behind the book is this: people who appear rich are probably not (they are just living a lifestyle that makes them appear this way). It is the everyday millionaire who has extraordinary wealth!
If you want to buy “Everyday Millionaires”, you can do it here. I just bought my copy, and I believe that this book will alter the course of many of your lives.
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