6 myths about wealth you need to stop believing
The answer to that question OUGHT to be, for every person living in the United States, an emphatic I DO!, followed quickly by “And I already am”, or “And I’m right on track to become one”.
In a recent coaching session with one of my newer clients, a 40-something year old woman, the topic of becoming a millionaire came up. I don’t remember exactly how, but probably through me explaining that once she gets out of debt and on track with her retirement investing, that she can easily retire as one.
From my perspective, this is just really no big deal, especially for someone like her who makes north of $80,000 a year and has pretty low expenses. But you should have seen her face, once she realized I wasn’t joking...big eyes, jaw dropped, and speechless.
Why do people make such a big deal out of achieving a million dollar net worth? It’s actually a pretty lame goal for anyone who EVER has an annual income over $100K in their lifetime. With that income, your goal to reach by retirement age ought to be more in the neighborhood of $5 million or more.
Check out this news story of a simple blue collar guy in Iowa who surprised 33 local teenagers after his death by covering the entire cost of their college tuitions. The point is that ANYBODY can be a Dale Schroeder if they really want to.
Don’t believe the myths people tell about millionaires and how they got there.
Instead, learn the truths revealed in the largest study of millionaires ever conducted:
Myth: Wealthy people inherited all their money.
Truth: 79% of millionaires never received any inheritance. 84% received zero or up to $100,000, meaning they did not become millionaires because of inheritance.
Myth: Wealthy people are just lucky.
Truth: 76% of millionaires surveyed say that anyone in America can do what they did and become a millionaire with some discipline and hard work.
Myth: Wealthy people make risky investments.
Truth: 79% of millionaires reached millionaire status through their employer-sponsored retirement plan.
Myth: Wealthy people take stupid risks to get rich quick.
Truth: The average millionaire hits the $1 million mark at 49 years old, after decades of hard work. Only 5% got there in ten years or less.
Myth: Wealthy people have prestigious private school educations.
Truth: 79% of millionaires did not attend prestigious private schools. 62% graduated from public state universities, 8% attended only community college, and 9% never graduated at all.
Myth: Wealthy people have high paying jobs.
Truth: One third of millionaires NEVER made more than $100,000 in a single year.