Everybody wants to become a millionaire. Unfortunately, not everybody’s chances of becoming a millionaire are the same, partially because the playing field is not even. This article looks at historical data on your chances of becoming a millionaire by race, age, and education.
Getting to at least one million dollars in net worth is a nice milestone to achieve. However, due to inflation, you need more than $3 million to live the traditional millionaire lifestyle today. Thankfully, I firmly believe the majority of people reading Financial Samurai and other personal finance sites will be able to achieve millionaire status.
If I were to guess the exact percentage of Financial Samurai readers who become millionaires in their lifetimes, I would say 60 percent. This doesn’t seem like a particularly high percentage. But once you’ve read the statistics below, you’ll come to agree that 60 percent is a home run figure.
For the remaining 40%, even if you don’t become millionaires, you’ll likely still build way more wealth if you keep on reading Financial Samurai and other finance sites than the average person who does not.
Since 2009 I’ve received dozens of e-mails from readers saying they’ve busted through the $1 million net worth figure thanks to aggressive saving and investing. Many have mentioned they wish they had discovered the personal finance world sooner. But better late than never I say!
So what about the rest of the 330+ million Americans who were fortunate enough to be born or gain citizenship to our great country? What are their chances of living the champagne dream and caviar lifestyle? Let’s have a look.
How Many Millionaires Are There In America?
Before learning about your chances of becoming a millionaire, let’s find out roughly how many millionaires there are in America.
According to Spectrem Group’s Market Insights Report, in 2021, there were roughly 9.8 million individuals with a net worth between $1 million and $5 million. There were 1.8 million individuals with net worth between $5 million and $25 million. Finally, 156,000 households (not individuals) had more than $25 million in net worth.
In other words, there are roughly 11.8 million millionaires in America, making up roughly 3.5% of the population. This count is at a record high thanks to a long bull market in stocks, bonds, and real estate.
According to Credit Suisse’s latest Global Wealth Report, they estimate there are actually 22 million millionaires in America. That’s an impressive 6.5% of the population. Whatever the true millionaire count is, there are millions of millionaires and growing!
With stocks, real estate, and other risk-assets continuing to do well, the number of millionaires is likely even higher in 2022. Further, I suspect the actual millionaire number is higher due to stealth wealth and plenty of unreported or underreported assets. It’s easy to obfuscate the value of your own private business.
Now let’s look at three insightful charts based on Federal Reserve data that shows your chances of becoming a millionaire by education, age, and race.
Your Chances Of Becoming A Millionaire By Educational Attainment
The chart says that the more education you receive, the higher your chances of becoming a millionaire across all races.
This makes sense since high-paying jobs often require higher levels of education e.g. lawyer, doctor, executive management, and scientist. However, thanks to free online learning and shorter specialty school programs, a college degree is slowly getting devalued.
Chances Of Becoming A Millionaire With A High School Degree By Race
- Asians 6%
- White 5%
- Hispanic 2%
- Black 1%
Without a high school degree, you practically have no chance of becoming a millionaire across all races.
Chances Of Becoming A Millionaire With An Associate’s Degree By Race
- Asians 3%
- White 7%
- Hispanic 2%
- Black 1%
For Asians, your chances of becoming a millionaire are actually higher if you only have a high school degree versus an Associate’s degree (6% vs 3%). Perhaps this is due to the prevalence of more Asian small business owners.
If you are Hispanic or Black, the percentage probability of becoming a millionaire does not change if you have a high school degree or an Associate’s degree.
Chances Of Becoming A Millionaire With A Bachelor’s Degree By Race
- Asians 16%
- White 18%
- Hispanic 4%
- Black 3%
If you are Hispanic or Black, this data should make you very wary of getting into student loan debt. Please apply for as many scholarships and grants as possible to minimize the cost of attending college.
If you are Asian or White, getting a college degree significantly increases your odds of becoming a millionaire.
Chances Of Becoming A Millionaire With A Master’s Degree By Race
- Asians 27%
- White 38%
- Hispanic 11%
- Black 6%
By the time someone has a Master’s degree, chances of becoming a millionaire should be similar across all races. However, the difference between the percentages between White (38%) and Black (6%) is striking.
If I was a White person, a Master’s degree is exactly what I’d get. Maybe just not a Master’s degree in History or Journalism if you want to become a millionaire.
Unless Hispanic and Black people are getting a Master’s degrees in mostly low-paying fields, the huge percentage discrepancy seems too egregious. Put it differently, the chance of a Black person with a Master’s degree becoming a millionaire is the same as an Asian person with only a high school degree.
The Master’s degree percentage discrepancy between Whites and Blacks is the strongest evidence of systemic racism. I’m not talking about one person hurling a racial slur at another person.
I’m talking about things like a private club, where it was originally 100% Whites only 70 years ago. Today, the club says it is open to all races. But to get in, you need to get five letters of recommendation from existing members. If you are a minority, you will have a harder time getting this support network together.
You see the same thing happening when applying for preschools, private schools, high-paying jobs, and so forth.
People Tend To Take Care Of Their Own
To explain why this huge difference exists, my theory is that people tend to take care of people who are most similar to themselves. Thus, if the majority of people in power are White, then more Whites will benefit at the expense of other races. Therefore, the chances of being a millionaire is higher if you are White and lower if you are a minority.
When I was working in Asian Equities, the head guy based in Hong Kong was a White English chap. To nobody’s surprise, he appointed White English heads at our offices in London and New York.
When the head English guy left, a Korean guy became the boss. The English heads in London and New York got laid off, and in came two Koreans to head the respective offices.
I bet if your new boss came from Tasmania, you would suddenly see a lot more Tasmanian lieutenants. If your new boss was a woman, you’ll likely have more female colleagues.
Despite over 12 years of online writing experience, there is probably little chance I could land a job at the Huffington Post given I’m male and Asian. The reality is, I probably wouldn’t even try to apply there based on the lack of diversity. Therefore, if a company wants to recruit a diverse group of employees, there needs to be diverse representation. Nobody wants to feel like the odd person out.
I don’t think most people are intentionally racist. I just think that most people tend to hang out with and help people who have similar backgrounds. Just look around your social group and in your workplace.
Related: Three White Tenants, One Asian Landlord
Your Chances Of Being A Millionaire By Age
The older you are, the greater your chances of becoming a millionaire. This is obvious thanks to compound returns. The earlier you can start investing, the better. Most of Warren Buffet’s wealth came after his 60th birthday.
Everybody’s chances of becoming a millionaire improves up until the age of 61. But after 61, the chances for Hispanics and Blacks to become millionaires declines.
It’s interesting to note the slopes for Asians and Whites are much steeper. Asians and Whites have significantly higher chances of becoming millionaires as they age likely due to a higher representation of Asians and Whites in higher-paying industries.
Another hypothesis is that Asians and Whites make up a greater representation of investors in stocks, bonds, and real estate at all ages. Given investments don’t differentiate between races, investments tend to keep appreciating after the age of 61.
Equal Opportunity Is The Goal
The slope differences between races means there is different levels of opportunity. Therefore, there’s been such a huge rally cry for Hispanic and Black diversity in many industries. Equal opportunity is really all we can really ask for. The rest of our success depends on work ethic, skills, and lots of luck.
The call for diversity is particularly strong in Tech and Finance, two of the more higher-paying industries.
If you were able to join Apple as a 22-year-old 10 years ago, you’d mostly likely be a multi-millionaire by now. But look at the gender and race representation of Apple in the chart below. It looks quite similar across all the big tech companies.
However, I’ve also noticed there’s not much of an uproar in industries that traditionally pay less.
For example, there has been no call for diversity in grade school teaching where the vast majority of teachers are female (~76%). There has also been no call for diversity in the military, where the broad majority of service people are male (~84%).
Hopefully, those who fight for diversity are also willing to fight for diversity across the board, not just at places that pay the most money. Equal opportunity is good. Equal outcome is impossible.
Your Overall Chances Of Becoming A Millionaire By Race
- Asian 22.3%
- White 21.5%
- Hispanic 6.8%
- Black 6.4%
Putting everything together, the Fed data says Asians have the highest probability of becoming millionaires. This is interesting since Asians are the smallest minority, representing roughly ~6% of the American population.
Like other minorities, Asians still face discrimination. Further, it seems that test score requirements are higher for Asians to have the same chance of admittance at certain colleges.
On the flip side, perhaps it is easier to mobilize a smaller population to heavily invest in their future. Singapore and its 5.6 million population is an example. Singapore has a per capita GDP of $53,000. Now compare the difficulty of mobilizing 1.5 billion people in China with a per capita GDP of only $8,200.
Finally, U.S. immigration policy may have something to do with giving Asian Americans a head start. In 1992, Congress created the Immigrant Investor Program to stimulate the US economy and promote job growth.
If you and your family can invest $500,000 in an overseas commercial venture, it’s highly probable that you are already a millionaire. Thus, given the relatively small base of the Asian-American population, it may be fair to ascribe a small portion of Asian millionaires to this cohort group.
However, I also know of several Asian families who escaped difficult government regimes and arrived in America with absolutely nothing. Therefore, it’s hard to generalize, since there are many different types of Asians.
Finally, perhaps there is a cultural reason due to the intense focus on education in many Asian cultures. Here are some personal insights into Asian wealth and income.
Do You Like Your Odds Of Becoming A Millionaire?
The odds of becoming a millionaire in America are between 6.4% to 22.3% according to data from the Federal Reserve Board’s Survey of Consumer Finances.
I’d gladly take those odds over trying to become a millionaire in any other country. I bet the odds of becoming a millionaire in Zambia, where I lived for one year, is less than 1%. Zambia’s GDP per capita is only $3,900, or 1/9th the GDP per capita in the US.
But returning to my original thesis, I believe that around 60 percent of you who consistently read personal finance sites will become millionaires in your lifetime. You will naturally take action to boost your wealth with a positive money-mindset.
60 percent didn’t sound like much in the intro, but now you know that 60 percent is 2.72X higher than the highest chance anybody has of becoming a millionaire in America.
How To Increase Your Chances Of Becoming A Millionaire
One of the biggest goals on Financial Samurai is to help people of all races become financially independent sooner, rather than later. With interest rates so low and future investment returns likely going down, financial independence often requires becoming a millionaire.
Put it this way, $1 million only generates about $5,000 – $17,000 a year in risk-free income. The reason why is the 10-year bond yield is around 1.7% and the best money market savings rate is now only about 0.5%. As a result, investors are being pushed to take on more risk for higher returns.
Here are my recommendations for how to increase your chances of becoming a millionaire:
1) Read personal finance sites every day.
Personal finance sites do a lot of things, but most of all, they make you pay attention to your finances.
As soon as you have heightened awareness about how much you are saving, what you are investing in, your net worth asset allocation, and your retirement plan, it’s only natural to generate more wealth than the typical person who is financially unaware.
Personal finance sites are often like free financial coaches, pushing you to continue instead of giving up. When you see someone day in and day out work on their finances, you can’t help but want to improve your finances as well.
In addition to reading personal finance sites every day, read as many finance-related books by people who are multi-millionaires. You don’t have to reinvent the wheel. You simply have to follow the guidance of those who’ve been there before.
2) Run the numbers.
Becoming a millionaire is a function of income, savings rate, investment returns, and time. Therefore, you can easily run various financial scenarios that will make you a millionaire. Here are some examples:
- Put away $350 a month and earn 6% a year, you will become a millionaire in 46 years.
- Max out your 401k and earn 7.5% a year, you will become a millionaire in 22 years.
- Max out your 401k and invest another $1,000 in after-tax proceeds a month, you will become a millionaire in just 17 years if you earn 7.5% a year.
Religiously track your net worth in order to optimize your finances. You don’t want to wake up 20 years from now and wonder where all your money went.
3) Do what the average person won’t do.
Obviously, if you want to become a millionaire sooner, you’re going to have to do things the average person won’t do. Here are some examples:
- If the average person works 40 hours a week, try working 60 hours a week to see if you can get paid and promoted faster.
- Try to create multiple income streams instead of just having one income stream, which is typical of the average person.
- If the average person only invests in index funds, try to invest 10%-20% of your stock allocation in individual stocks. Your overall portfolio might underperform, but at least you’ll have a chance of outperforming.
- If the average person wakes up at 7 am, try waking up at 5 am for a year to work on your side hustle. Maybe an extra 730 hours a year will make you more productive.
4) Get motivated by the statistics and don’t quit too soon.
What’s annoying about statistics is that they can discourage you from trying. However, one of the core principles of Financial Samurai is to never fail due to a lack of effort because effort requires no skill.
If you don’t like your millionaire odds, change them!
Do not settle for what the data says about your chances. In fact, the lower your percentage chance of becoming a millionaire according to the Fed, the more motivated you should be to beat the odds. Once you do, it will be all the more gratifying.
One of the keys to building great wealth is not giving up. If you can try consistently for at least 10 years, I’m positive you are going to dramatically improve your odds.
5) Work in the highest paying industries.
If you want to be a millionaire, then you might as well seek employment opportunities in the highest-paying industries. These industries include finance, tech, medicine, law, strategy consulting, and entrepreneurship.
Generating a high income makes becoming a millionaire much easier. That said, you still have to have the discipline to save a good portion of your money. There are plenty of high income earners who end up broke due to poor financial habits.
6) Invest in the least diverse companies.
Let’s say you can’t join a fast-growing company no matter how hard you try. You also don’t think the company will ever change its homogenous workforce. Instead of getting left behind, if it is publicly traded, consider investing in the company.
This way, you get to participate in the company’s growth and have its homogenous workforce work for you!
Come up with a list of the least diverse publicly traded companies. Compare their diversity report card from five years ago and today. If not much has changed, you might be onto something.
Companies love to talk about diversity & inclusion, but it’s really hard to change established culture. If you can skillfully recognize human biases, you can increase your chances of becoming a millionaire.
7) Build your social network of highly motivated people.
Your parents were right. If you want to have a greater chance of success, whatever that means to you, you should probably hang out with people you think are going places. This includes marrying the right person.
Let your friends challenge you to do more. Over time, your friends will naturally become wealthier and more successful. If they are your true friends, they will want to bring you up along with them. If you are their true friend, you will do the same.
Your good friends will invite you to participate in various promising private investments. They will shoot you more enticing job leads. Some will make customer introductions. Others will help your children get ahead.
Welcome to the world of how things have worked for centuries! Your network is your net worth. The key is to be a genuine person who is always looking to help first. No matter your race or gender, this type of attitude will build you a great network. The stronger your network, the higher your chances of becoming a millionaire if that is what you want.
8) Don’t rent for life.
Although it’s a nice thought to rent and invest the difference each month, most renters don’t end up regularly doing so. The return on rent is always -100%.
Every month you get a place to stay with you rent money. However, you don’t build any equity or have a chance to build equity. In 30 years, a renter is guaranteed to be left with no real estate equity. Whereas a homeowner, if he regularly pays his mortgage, will end up owning the house free and clear.
In the Federal Reserve’s 2019 Survey of Consumer Finances, it was revealed that the median net worth of homeowners was $231,400. Renters had a net worth of just $5,000. In other words, the typical homeowner had a net worth 46X greater than the typical renter.
We can argue until the cows come home why there is such a stark difference. However, just know that over the long term, you want to benefit from inflation and not get hurt from inflation.
Related: Mortgage Interest Rates By Race
At Least Get Neutral Real Estate
As soon as you find a place where you see yourself comfortably living for 5-10 years, get neutral real estate by owning your primary residence. Obviously, make sure you can afford your purchase. One home buying rule I suggest everyone follow is the 30/30/3 rule.
Over time, you will see a widening spread between the cost to rent and the cost to own due to inflation and largely fixed costs of owning a home. During this time period, you’ll also be paying down principal and building equity. If the home also appreciates in value, you will have a nice tailwind towards millionaire status.
If you can’t afford to buy a physical property, then you can still participate in real estate’s rise by buying a publicly-traded REIT, like VNQ. Or, you can invest in real estate crowdfunding, like I have done after selling my physical rental property in 2017.
The rental property was too much of a pain to manage as a new father, so I sold it and reinvested $550,000 of the proceeds in crowdfunding. My favorite real estate platform is Fundrise. It has innovative private eFunds that contain a diversified portfolio of income-producing real estate investments across the country.
Best Real Estate Investing Platforms
Earning money 100% passively through real estate is my favorite way. Fundrise is free to sign up and explore and is my favorite platform. The platform manages over $1 billion in assets for over 150,000 investors. Investing in a fund is an efficient way to gain real estate exposure.
If you are an accredited investor and want to invest in individual real estate opportunities, check out CrowdStreet. CrowdStreet focuses on properties in 18-hour cities where valuations are lower and growth rates tend to be higher. CrowdStreet occasionally offers speciality funds as well, like a recent Build-to-Rent fund to take advantage of rising rents.
I’ve personally invested $810,000 in real estate crowdfunding to diversify my investments and earn income passively. Real estate is my favorite way for average Americans to build wealth as we recover from the pandemic.
9) Participate in the new “permissionless” society.
There are people making big money every day without the prerequisite traditional credentials. For example, you no longer need a fancy degree to get a job in tech. You just need to know your tech.
In the personal finance world, there are some very successful bloggers who are doctors, journalists, engineers, cooks, and school teachers. Most do not have a finance background. All they did was start a site and get creative.
You don’t need radio experience to start a podcast. Neither do you need broadcasting or acting experience to start a YouTube channel. Anybody can start a podcast or a YouTube channel.
Tech and the internet have created a wonderful permissionless society for historically marginalized groups. If you have kids, please teach them everything you can about the permissionless society. There are no gatekeepers.
10) Read The Best Selling Personal Finance Book
If you want to dramatically improve your chances of becoming a millionaire, purchase a hard copy of my new book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. The book is jam packed with unique strategies to help you build your fortune while living your best life.
Buy This, Not That is a #1 new release and #1 best seller on Amazon. By the time you finish BTNT you will gain at least 100X more value than its cost. After spending 30 years working in finance, writing about finance, and studying finance, I’m certain Buy This, Not That will help you create more wealth and purpose.
The Inevitable Millionaire
In an ideal world, it would be wonderful if everybody could have an equal chance to become a millionaire by race, by age, and by educational achievement. Unfortunately, the system is rigged by the people already in power who naturally take care of their own.
It’s up to all of us to proactively enrich our minds with knowledge that can help us grow our wealth, regardless of circumstance.
Believe that becoming a millionaire is highly possible in your lifetime. And once you feel you’re on track to get to $1 million, you might as well shoot for $3 million due to inflation.
If you keep grinding long enough, maybe you might get to a top 1% net worth of $10 million! Once you get to a net worth of $10 million, you’ll be able to easily generate $250,000+ in passive income in a low-risk way.
Money does buy happiness because it helps you feel less stressed about money, especially during difficult times. Once you have enough money, make sure you do your best to preserve your capital. The last thing you want to do is go backward!
Loading ...Readers, what do you think about the various chances of becoming a millionaire? Why do you think there is such a massive discrepancy in percentage chance for White and Black Americans with Master’s degrees? Any more suggestions on how to increase your chances of becoming a millionaire?
About the Author
Sam worked in finance for 13 years. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that cover his desired lifestyle. He became a millionaire at 28 through aggressive saving, investing, and luck.
He spends time playing tennis, taking care of his family, and writing online to help others achieve financial freedom too.He started Financial Samurai in 2009 and has grown it to be one of the largest independently owned personal finance sites in the world with over 1 million organic visitors a month. You can subscribe to his free weekly newsletter where he shares more tips about becoming a millionaire.
Luis, I see your concern. However, I’m confused to where you came up with the idea of “diversification of phenotypes”? he never mentioned phenotypes in his post, and I’m pretty sure that this article has nothing to do with biology. If you’re concerned about the statistics that he talked about, those are facets of reality that he gathered from government sources. Unfortunately, as generalized as the data is (i personally wish they had more comprehensive data that included race and ethnic subcultures ) it’s really the only information we have , and it is what it is.
I see that this topic on race and wealth has really touched on some negative emotions that make you uncomfortable on the topics of race and social inequity, and I can relate. But I question where you got the idea that FinSam was classifying Asians, and how you came to the conclusion that it’s “disgusting”. He never once mentioned he was classifying Asians as anything other than people of color. I want to emphasize that he was literally spitting facts from government sources on different race categorizations, and explaining hypothesis that connect human social behavior and real life financial outcomes for certain groups; he even gave some practical tips on how to manage these realities. I ask you to re-read his article and cite where you derived your conclusions about “phenotypes” “asians as non-colored people” “what is this silly concept of people of color vs people of non color”, and show the rest of us so we can get woked.
I applaud Financial Samurai for even attacking the issue in a pretty balanced and realistic manner, albeit the topic can be very uncomfortable for some (as yourself). In fact, Financial Samurai even argued and acknowledged the systemic racism plagues our system.
But as a person of color myself, I urge you to see the reality not as an attack to people of color, or a reclassification of who is and who isn’t a person of color, but more of a battlefield assessment of what certain people who belong to certain groups are up against. Life isn’t fair. Sorry Luis.
“Believe that becoming a millionaire is highly possible in your lifetime. And once you feel you’re on track to get to $1 million, you might as well shoot for $3 million due to inflation.”
This really resonated with me as I’m getting closer and closer to the $1M mark and what once seemed like a far away pipedream is now quickly becoming reality. Might as well shoot for the moon once that milestone gets reached.
Appreciate the content!
As a person of color…To classify Asians as if they aren’t people of color is disgusting. You claim the outcome to be the diversification of phenotypes, when both Hispanics, Black’s, and Asians have the same level of diversity in context to phenotypes. Asians from Laotian to N/ Indian have the same diversification of phenotypes as Hispanics and Blacks. Yet the outcome between them is different when it comes to salary. To never consider the difference in culter between the diversification of phenotypes as a key factor for the outcome is misleading and devalues Asians as people of color(which they are). It isn’t the diversification of phenotypes that determines the outcome, it’s the culter.
Hi Luis – I’m not sure how you came to your conclusion after reading this post. Can you explain further what you mean by phenotypes and “culture”? It’s clear Asians are a minority (6% of the U.S. population) and are considered people of color.
You may enjoy these posts:
Three White Tenants, One Asian Landlord: A Story About Opportunity
Income By Race: Why Is Asian Income So High?
Luis, I see your concern. However, I’m confused to where you came up with the idea of “diversification of phenotypes”? he never mentioned phenotypes in his post, and I’m pretty sure that this article has nothing to do with biology. If you’re concerned about the statistics that he talked about, those are facets of reality that he gathered from government sources. Unfortunately, as generalized as the data is (i personally wish they had more comprehensive data that included race and ethnic subcultures ) it’s really the only information we have , and it is what it is.
I see that this topic on race and wealth has really touched on some negative emotions that make you uncomfortable on the topics of race and social inequity, and I can relate. But I question where you got the idea that FinSam was classifying Asians, and how you came to the conclusion that it’s “disgusting”. He never once mentioned he was classifying Asians as anything other than people of color. I want to emphasize that he was literally spitting facts from government sources on different race categorizations, and explaining hypothesis that connect human social behavior and real life financial outcomes for certain groups; he even gave some practical tips on how to manage these realities. I ask you to re-read his article and cite where you derived your conclusions about “phenotypes” “asians as non-colored people” “what is this silly concept of people of color vs people of non color”, and show the rest of us so we can get woked.
I applaud Financial Samurai for even attacking the issue in a pretty balanced and realistic manner, albeit the topic can be very uncomfortable for some (as yourself). In fact, Financial Samurai even argued and acknowledged the systemic racism plagues our system.
But as a person of color myself, I urge you to see the reality not as an attack to people of color, or a reclassification of who is and who isn’t a person of color, but more of a battlefield assessment of what certain people who belong to certain groups are up against. Life isn’t fair. Sorry Luis.
This article is one opinion, but I personally have another. I think wealth has more to do with personal choices than “systemic” issues. Work ethic, degree selection, avoiding having kids out of wedlock, living below your means, etc. I see this everyday. Over the course of an average 40 year working career, a mere $160 a month invested in the S&P 500 can make you a millionaire! There is no secret club involved. I became a millionaire mostly through my military service because I maxed out an IRA most years.
I’m sure you can draw some wage inequality conclusions based on whether you’re an extrovert or introvert, but that doesn’t mean there are ominous forces at play. What they really need is more personal finance education in high school!
This is an interesting article. I am South American Asian, meaning Hispanic of Asian of origin and I came to the US as a teenager to study. My parents helped pay for school as a foreign student but not much beyond that. I did my share of low-paying, back-breaking types of jobs but my economic situation improved substantially once I got my degree from a State University. I went into professional sales for the corporate world for about 5 years before the tech crash in 2000 wiped out all my savings, options, etc. Tired of working for others, I started my online business and now 21 years later, I am comfortably in the top 1% in income and assets. Looking around at my friends, which are a large variety of people from different backgrounds, the one thing that makes the difference in personal economic progress is the ability to “hustle”, which comes from their cultural background or how they were raised. Education in itself and work ethic help a lot but on their own, but they won’t make people very rich unless they luck out by getting stock options in a very successful start-up. The couple of friends that I know are multimillionaires, one is an Israeli guy who taught me how to clean carpets in my college days and not owns a fairly large import company. The other is an Asian guy who grew up poor, got a degree, and end up opening a chain of dozens of restaurants. The more educated people that I know, most are ok but some still struggle at mid-life. People keep talking about racism, the glass ceiling, etc. and I am sure they are valid but culture definitely plays a much bigger role in one’s chances to succeed in this economy. And while I think awareness of these structural problems is important, I am afraid they can also be used as excuses to not succeed. Basically, giving up before they even got started.
Yes sir. Hustling is what will get you wealthy, and probably sooner compared to a 401k. I’m not there yet but I started a little cleaning company after I dropped out of college. It did ok. Closed it when the pandemic started.
But because of that, I was forced to learn how to make websites and digital marketing. I currently work in the dental field doing digital marketing for dental offices and dental assisting schools. No college degree.
I could get paid 60-70k pretty easily, without a degree. With more experience I could earn more.
But currently I’m looking into getting my own clients and exploring other avenues where my skills can come in handy.
The internet and drive are great tools to get ahead. You just have to motivate yourself to do the work.
People may be racist, sure. But money and business are not.
There might be systemic racism. But the issue is far more nuanced than the points in this blog post.
African Americans are concentrated in the lowest paying college majors. And the students who are in higher paying majors like engineering are not only underrepresented but also perform worse academically. https://www.pbs.org/newshour/education/african-americans-over-represented-among-low-paying-college-majors
Another example would be doctors. You have a disproportionately low number of black doctors despite admissions standards being much more lax. https://www.aei.org/carpe-diem/new-chart-illustrates-graphically-racial-preferences-for-blacks-and-hispanics-being-admitted-to-us-medical-schools/
African Americans own small businesses at a 50% lower rate and tend to have lower revenues https://www.zippia.com/business-owner-jobs/demographics/
African Americans invest in equities at a lower rate and take much less financial risk even when you adjust for income. https://abcnews.go.com/Business/wireStory/stocks-soaring-black-people-missing-73567655
I can get on board the argument that a people hire others who look like themselves at a higher rate. And I have heard other arguments that have prevented wealth from being accumulated by African Americans in the past which has reduced the net worths of descendants. But disproportionately graduating with the lowest paying majors, starting fewer businesses (which has been the path for minorities like Asians to accumulate wealth), and taking less risk with investments seem like pretty big counterarguments to the systemic racism idea being the main impediment to being a millionaire.
Great article! It’s totally interesting that age, race and education aren’t necessarily giving someone more advantages, but rather removing more obstacles in their way.
-Andrew
The Military and GI Bill funded my education and my VA loan got me into my first home. I researched career paths that had the best pay in my area with the least amount of education required, and did that. It is all about choices, I am Mexican American btw
Oh hit that 1 M this year (which includes home equity)
Sam, I can’t thank you enough for all the insight that your blog provides, I’ve been putting it to good use. Today was a great day for the stock market and today is the day that I’m finally a 401k millionaire…sort of. I don’t have one account with that figure, instead, I have a 403b, 457b, TSP and a Roth IRA, which combined hits the number. I bounced around employment with civil service, military (active and reserve) and a little private sector, so ended up with multiple accounts.
I have two huge regrets: 1) I didn’t start investing in retirement accounts earlier like my Dad kept trying to tell me (I’m 52, but I only started investing 16 years ago) and 2) I didn’t find your website earlier.
Per your article, I guess I’m one of the 16% of Asians with a bachelors degree that hit the mark. Saving was hard, but there are two passive things that made it easier. One is that I don’t drink, quit in ’97 when I was a buck Sgt at Fort Bragg, NC. Easy to rack up a $200 dollar bar tab in a night out, so instead I put that money towards my retirement accounts. Two is that I take good care of my cars so that I can drive them for 15 years. Lots of my co-workers buy cars every 3 years. They have nice shiny cars with all the bells and whistles, but they also have constant car payments and those car payments are money could have been going into their retirement accounts.
Mike from NH
Stating percentages of millionaires by race doesn’t establish probability but rather informs the readers of current millionaires by race.
Irrespective of anyone’s race, in America you can achieve anything in your life if your willing to work for it
Becomes the best you can be in your respective field of employment, save as much as you can and invest the monies in a S&P 500 index fund
Along the way build a strong character and personal brand
Anyone can do it. Only a few have the patience and perseverance in the end
Character matters!
I’d be interested in learning more about why you think there is such a large discrepancy between races. Your reply implies that since white people have a much higher chance of becoming millionaires, then they must have stronger character. That they have the most patience and perseverance. That their character is superior. Is that what you are saying?
It seems so!
I don’t think that’s what he’s saying. While he doesn’t address the very real racial wealth disparity, the comment is valid.
I interpret Mikes comment as saying that the statistics don’t determine your personal fate. Even with the headwinds of race, the things that make millionaires are within all of us.
Since I can’t change my: Race, Age, or Education-at my age, I’d be more interested in knowing, Chances Of Becoming A Millionaire By political beliefs. Are there more democrat or republican millionaires ? And what does that say about successful socialism ?
Thank you for the GREAT advice. Very Motivating.
From an A.A Single mom of 3 boys with an Associate’s Degree.
On my way to achieve my goal of becoming a Millionaire through my own dedicated Diverse Entrepreneurship Program I plan to start-up in Baltimore City, Maryland.
Remember this POST….
You’re welcome! Stick to an investing and savings game plan. Over a 10-year period, you will be amazed at how much you will have accumulated!
GL! And here’s my free weekly newsletter if you want to subscribe.
What is the authors or publishers name I am doing a research paper and I need a to cite. I think this blog is going to be essential to my paper.
Sam Dogen
Becoming a millionaire is not chance, aside from those few who do so through lottery and slot machine pay offs. People have a better chance of being struck by lightning than getting rich this way.
Becoming a millionaire is the consequence of innate talent, hard work, and proper attitude.
Not everyone has the innate talent. Not everyone is willing to work hard enough. Not everyone is ambitious enough, has a good plan, or is willing to delay gratification. But for those who are, the only chance involved is not getting struck by lightning too hard.
Or you can have rich parents. Oh. Nevermind, you already said winning the lottery.
The fact that blacks and hispanics with a college degree still have a small chance of becoming a millionaire is not evidence of systemic racism. If this were the case, Asians would not be so successful in any of the education groups. In fact, the median income for Asian families is higher than that of whites. Why is this? Because Asians tend to choose better degrees. This is the same reason that college doesn’t significantly increase black/hispanic chances of getting rich- I.E. they are less likely to choose useful degrees.
A simple google search confirms this:
clevelandfed.org/newsroom-and-events/publications/economic-trends/2015-economic-trends/et-20150331-racial-and-ethnic-differences-in-college-major-choice.aspx
This is the same reason women earn less money than men. Men work harder jobs and longer hours than women. Men choose better degrees than women. Women are 65% of college graduates, but still earn less money- because they largely choose worthless majors.
inside.collegefactual.com/stories/the-most-popular-majors-for-women-men
White men and Asians tend to choose STEM degrees. White women and everyone else combined choose worthless degrees roughly 80% of the time (social sciences, early education, gender studies, history, English, etc.).
An Engineer makes more money than a gender studies major. This isn’t racism, it’s how the free market works. The information on what jobs are available to each major is freely available, as are the salaries of such jobs. An inability to use google or the decision to choose an “easy major” on the part of some people cannot be blamed on “systemic racism” or “patriarchy”.
A much more pertinent question can be asked – If women get paid less than men for the same job, then why dont companies only hire women?????
You ask a question the right way and a statistic can tell you anything: Women/POC aren’t just choosing worthless jobs, the jobs that are deemed more “valuable” changes as gender dynamics change within a work field. For example, in most of modern history women have been nurses and being a primary care taken is in no way easy. Most recently more men have been joining this field, and within the past ten years the median wage for nurses has significantly increased. Patriarchal values make us perceive the work that women do as less valuable solely because it’s a woman doing it. In dept article about it below.
https://www.nytimes.com/2016/03/20/upshot/as-women-take-over-a-male-dominated-field-the-pay-drops.html
And to say systematic racism doesn’t impact wealth is just absurd. There are so many black people in so many different fields, even if most of them were going after the “worthless jobs” (which I don’t know if this is statistically true because like I said, the jobs deemed valuable in our society depends more-so on the people fulfilling the job than the actual work getting done), black men that are more qualified that their lighter skin/non dark skin peers are still less likely to get a position solely because their blackness deems them as an intimidating applicant. Systematic racism is complex and ingrained in our society, so what you may consider to be a minorities reckless decision, first consider why they made that decision, and if they were to chose differently would they really be given a better opportunity.
Colorism article:(Dark skin man with MBA less likely to be hired than light skin man with Bachelors degree) https://www.nccj.org/colorism-0
I know this is old, but its an opportunity to educate.
A partial reason that Asian outcomes are better is selection bias. Along with the smaller sample size, Asians who are in the U.S. tend to come from wealthier and/or more educated families, especially more recent immigrants. Or escaping tyrant governments, which comes with its own set of motivations.
This same pattern is seen in African communities. African immigrants and 1st generation African Americans tend to have even better outcomes than Asians in many respects.
All this to say regardless of race, the higher the likelihood the previous generation is wealthy, the higher the chance their offspring will be wealthy. And through various means (governmental and societal), black Americans have been more limited from generating wealth than any other group, hence the worse outcomes.
Ben and Jerry’s of all places has a good summary of systematic racism: https://www.benjerry.com/whats-new/2016/systemic-racism-is-real
FYI:
– Another reason is that black wealth is lower is that a lot of the growth in tech in particular is occurring in areas of the US with low black populations (San Francisco, Seattle, Portland, etc.). Inversely, these cities tend to also have a naturally larger Asian population.
– Asians are not a monolith. Also, much of the wealth in the Asian community is concentrated among East Asians, Indians, and Pakistanis.
– Despite their achievements, Asians are also underrepresented in leadership positions at these same organizations they work for. One of the many ways Asians are still being discriminated against.
Here’s a few articles:
– https://www.npr.org/sections/codeswitch/2017/04/19/524571669/model-minority-myth-again-used-as-a-racial-wedge-between-asians-and-blacks
– https://www.npr.org/2021/05/25/999874296/6-charts-that-dismantle-the-trope-of-asian-americans-as-a-model-minority
– https://diverseeducation.com/article/173133/
I like your analysis as always but what about people with pensions and retired military. I have friends retired police with $50,000 plus pensions for life. Hey that’s a million bucks. I have friends retired military with pensions over $50,000 free medical ( Tri care) that’s a million bucks.
So you need to add pensions over $40,000 to the millionaires. Lots of teachers.
Also you need to add population numbers by race when making claims of racial issues. There are a lot more white millionaires but there a lot more white people. What about people from other countries who come here and become millionaires. Where do they fit in the numbers by race?
Sure. Less than 20% of Americans have full pensions. Pensions are indeed quiet valuable.
See: https://www.financialsamurai.com/how-do-i-calculate-the-value-of-my-pension/
Your point number 9 resonated a lot with me. I actually took the leap and started my own blog. Right now it is not for making any money but rather share my experience in the construction industry. Hopefully one day it takes off and I can start making some sort of revenue from it even if it only covers domain and hosting costs. Thank you for this post!
Best,
EngineeredJourney.com
Hi there,
I am a high school teacher (and fellow W&M grad!) and want to react to a very small point- there is a search for diversity in the teaching profession. The statistic you quote about lack of diversity in teaching only looks at gender- there is a lot of focus on attracting racial diversity in the teaching force, especially as the demographics of American students change. Individual colleges are focused on this, as are teacher training groups (like TFA). Recruiting teachers of color is absolutely a focus, even in “lower paying” work.
(Furthermore, the teaching profession was intentionally feminized in the mid 1800s as education became compulsory. States and reformers such as Horace Mann advocated for women to be teachers because 1) it fit with their social interpretation of women’s roles as nurturers and 2) they could pay them far less than a man’s salary. The legacy of K-12 education being “lower paying” work AND a highly female-dominated profession is a direct outgrowth of this *systemic* shift!)
Being a black man I have a different perspective on why it is harder for black people on a whole to reach millionaire status. My mother is from the islands but I was born in America. I grew up with black American friends. The main difference between me and my friends, who allot of them are dead or in jail or just living day to day check to check, is that they didn’t have a Male influence in the house hold. Luckily for me I had a grandfather who lived with my mother and I and a hard nosed Marine uncle who was in my life. 95% of my friends had no father or father figure in their life. No one to teach them about money or how to save. We just learned about purchasing and spending from our mothers who usually spent their paycheck before payday even arrived. Systemic racism helped this because of Gov programs that helped black mothers. If a father was in the home, you could not recieve benefits which in turn started to break up black families. There’s so many other things that help keep black people back in this millionaire race, but the number one thing is mentality. It’s so much negativity in the black community but it stems from not knowing ourselves, losing our culture, having to adapt to American culture, basically it’s a mental issue. Blacks are still going through PTSD whether other races want to believe it or not. But still it’s no excuse. If any race can do it black and brown people can also. I see the statistics of black millionaires and it motivates me to change that 1% to at least %2. I will help change this statistic!
Thanks for sharing your perspective. Is it true that there is less male influence in black households? If so, why do you think think this is so besides the government support you mention?
Once I became a father in 2017, I wanted to spend more time at home teaching my kids instead of less time at home to hang out with friends and work. I would think most fathers feel the same way, no?
Replying to the man who mentioned single parents: As a black woman, I don’t think fatherlessness is the root problem for millionaire potential. I blame Bad education and no real generational wealth. If someone comes from poverty, gang infested area, and extremely low quality schools, theres a higher chance they’ll be introduced to drugs at a young age (about 11 yrs old). Most have family and friends who sell drugs too.
Success, they’re told, is making a lucrative career selling drugs (illegally). And they’re being taught this at a young age. Many become young addicts themselves. There are drug lords who do make it as millionaires, but not included in these estimates as successful black people….it’s a trap of course. Overwhelming majority of black people in jail is for selling drugs.
Black children who grew up in the suburbs, and immigrant black children will have a different mentality, cause we see success as doing well in school, graduating, and getting a good job. We tend to be more focused academic smarts vs street smarts. And we aren’t being setup for criminal mentality by our family and friends.
This is certainly true on the surface. But it’s also true that most black children don’t grow up in ghettos. I do believe Darnell has an excellent point about fatherlessness but I believe that’s not the whole picture either. What master’s degree you get matters far more than whether you have one. MBAs and technical degrees are worth far more and Whites and Asians are more likely to earn those than Blacks and Hispanics. I know more than one masters of social work holder who make $55k per year. A degree alone is not a good determiner of a high income… the type of degree earned matters far more. And obviously there are plenty of famous actors and athletes (of all races) who go broke because they don’t understand money. I worked with an engineer who did a short stint in the NFL. The NFL has a 100% matching investment plan but only 10% of players took part! I think exposure to the right information at a young age and teaching kids more about money can help a lot with this. One would hope anyway.
I believe at least half of black children grew up in a rough neighborhood. Not exactly ‘ghettos’ but the problem is when a neighborhood becomes mostly black it gets less school funding, becomes over policed, and less upkeep. So that lowers the chances by about half I feel. And also yes! Financial education is needed. Successful money practices in America have been passed down more by white parents because of the ability to own land in the past, etc. and inheriting a paid for house from ur parents is something most black kids don’t have
Yes I feel the same way. My daughter Is only 2 months old but that’s the same feeling I have now. But going back to the mental state of black people, I just feel we all have a lot of issues going on mentally. I honestly don’t have the answers but from my perspective, the black men I know who had a father or father figure tend to be more successful, less emotional, just more solid individuals. It starts in the home. But there’s alot going on in the homes that need to be addressed. Asians have a solid foundation when it comes to families and the fathers expectations from the children. We lack that for the most part. I hate to sound like a victim because I understand anyone can overcome if they really try… but I honestly believe it’s because of slavery. Mentally most black people have a slave thinking process. We think of ourselves as workers. We, for the most part don’t see ourselves as entrepreneurs or bosses. I don’t speak for all black people but this is my observation. And things are starting to change for black people! Still there’s issues that need to be addressed though.
As a white person (although I live in Mexico in an area with no expats and I only speak Spanish at home) I would like some insight on your statement “Systemic racism helped this because of Gov programs that helped black mothers. ” This also applies to poor whites as well so I am perplexed as to why this would be a racist policy unless the intent of the Johnson administration was to ensure that blacks remained poor. Personally I believe the problem is not one of racism but rather one of classism. If you are born into wealth, your color is of little consequence and in today’s political correctness might even be an advantage.
But they are wondering why so few black people are born into wealth. This is where systemic racism comes in.
How is this systemic racism? I could ask why are so few white people living in trailer parks are born into wealth.
You must also consider your question in regards to countries that are predominantly black. The percentage of people in those countries that are born into wealth tends to be much lower than the percentage of people born into wealth in the developed world. Is that also due to “systemic racism” or is it due to classism?
In the end, I suspect we will just have to agree to disagree as our perspectives are undoubtedly very different.
What’s amazing to me is the size of the confidence interval for Asians relative to other races. I wonder what the cause of that is.
Hi Modviz. There are a lot of generations about Asians Americans that I wanted to clear up. Many that we see in media are East Asian Americans, which have different income/education backgrounds vs Southeast Asian Americans. There is a big difference between those two Asian demographics alone. Many Southeast Asian Americans came to America escaping war (Vietnam War/Cambodian genocide, etc) instead of of the Asian immigrants now. Different generations of Asian American immigrants also play into part. Newer Asian immigrants are generally wealthier and more educated as they come from “new money”
this article has really touched my heart. And the fact that my country Zambia is mentioned makes it even worse. Opportunities in certain areas make it difficult for some people to success in life. i grew up in a grass thatched house, surrounded by poor people with full of negative thoughts. managed to finish high which was a very big issue from my neighborhood and went to college for a diploma in Business Admin. i work and am considered one of the rich guys from my home town. but i have nothing. my salary is less than $300. if i was able to get education from such kind of neighborhood which was full of negative people, being chased from school because of unsettled fees, discrimination, i will make it and become a millionaire. thanks for this awesome article.
Regards
Mwewa Pethias
It is sad but not a surprise to see that the political climate made it all the way to this awesome site. Your charts are the best answer against the so called systemic racism. Ex, if the system is designed for white people to get ahead, then why the Asians, which are one of the smallest minorities are doing so far better than all of us.
I escaped the Cuban dictatorship, a place where the people is REALLY oppressed, my last mile to US was actually swimming, 15 years later I paid off both, my house and my parents, I do have a Master degree and I try every day to not fall into this victim’s mentality.
Anyway, I doubt that your readers blame on others their failures since all I have seen throughout these years is people with high level of self-esteem, great work ethic and personal responsibility.
Don’t be sad. It’s always good to get educated. Congrats on your success. Use your success to help others. We all win this way.
Sam, I read your articles and I agree with a lot of what you post. However, as you can see from my original comment and a lot of comments from other people that their just may be another side to this story that does not fit your political narrative. I am a white male, 54 years of age who came from a blue collar family where neither of my parents went to college. My father worked three jobs just to allow my mother to stay home and raise 4 kids, put a roof over our heads and put food on the table. All 4 kids went to college and paid for it themselves. I have a degree in bachelors in engineering, a bachelors in accounting, a masters in taxation and a law degree. I paid for each degree myself and paid off my student loans. My wife is 49 years old and came from a single parent home since she was 3. She too did not have parents that put her through school and paid for veterinary medicine school on her own. I would argue that we came from white disadvantaged homes put we succeeded through effort and making good choices. The choice of the degree that you obtain from college makes a big difference on your ability to climb the corporate ladder or open your own business.
Its important as an author to be open to other peoples opinions whether your agree with them or not. Does racism exist? Sure it does. Is it systemic, I am not so sure. Most racism rises from ignorance, and not with malice intent. You do not have to be black or hispanic to experience racism or “the good ole boys club. Do people like to hang out with other people that are like them? Sure. Does that make them a racist? Absolutely not.
We hear on the news daily about white cops killing black men and women. But you never hear about black men and women killing other black men and women. Why? Because it does not fit the political narrative. Are there bad cops? Absolutely. Are all cops bad? Absolutely not.
Again, it all falls back to the political narrative that is perpetuated.
What is the point of my rant, your readers read your material because it educates them on finance and provides a conversation. My only advice is not to cavilierly dismiss the thoughts of your readers when it does not support your thesis or you may end up with less subscribers.
Maybe, just maybe, they have a point and a further analysis of the data on degree types will provide information that will either support your conclusion or not. However, without the analysis, a terse response indicating your conclusion is correct does not benefit yourself or your readers.
Just food for thought.
@KMG- “A fish never sees water as air”
Solid assessment, however your post goes too subjective as this sounds as if you and your wife are hard workers, etc.! Nothing against that, but you also noted several areas in which you didn’t have to deal with obvious hurdles in which your minority counterparts had to overcome. For example, your parents probably didn’t need to go to college like many adults in that era and they also were relegated to the lowest paying jobs, health care, etc. due to skin color. I’m sure they nor their kids had to live in fear of terrorists (i.e. Violent white supremacists, local police, church bombings, etc.) either?
Also, if you’re 54 (born in 1966-67..Jim Crow/Pre-civil rights baby), by the time the mid 80’s and early 90’s (i.e. Hello white flight) came around you also avoided being targeted by government policies (housing, drug laws, judicial system, indigenous reservation changes, etc.) that produced harsher penalties for people of color than whites. This also equated to LESS competition career wise for you as well. If the above objective examples aren’t systematic I’m not sure what we are missing here. This isn’t meant to take anything away from your success, it’s just a reminder to be gracious for the hurdles you didn’t have to endure along the way!
Let’s all get educated and get away from the half told history lessons!
Peace & Harmony
Also, let’s not forgot some of the studies that identify how one’s name can easily affect their earning potential (i.e. another systematic issue):
freakonomics.com/2013/04/08/how-much-does-your-name-matter-full-transcript/
All points are welcome, which is why your comment is published and free for all to read.
I don’t dismiss your experiences. And I hope others do not dismiss my own.
Sharing our experiences is how we broaden our minds and grow.
I firmly believe those of us who done well should do more to help those who are struggling.
In my mind, if we can, we must. A big reason why I keep on publishing three times a week on average since 2009 is to try to help as many people as possible with my free content.
You don’t hear about black people killing black people for the same reason you don’t hear about white people killing white people. Because civilian killing is irrelevant to police brutality. Cops are there to protect and serve. They’re in a position of authority and should be fair without killing people who aren’t a danger. And to be clear police brutality happens against all kinds of people, not just black.
Then why the blowback against All Lives Matter or why the title Black Lives Matter? Neither refers to police brutality in any way. Personally I believe the message should not have been related to any race but rather just police brutality.
Jim,
As brothers-in-arms and a fellow military officer (still Active Duty), I will be blunt and honest. I’d recommend to take a break, reap the benefits of honorable and hard work, and enjoy the precious moments with the family. Do not work just because you “feel” the need to work. As military folks, we all have that innate drive and self-initiative to achieve for excellence 100% regardless of the obstacles. Enjoy the retirement without the need to work and congrats on becoming a multi-millionaire.
Cheers,
~G
I think you may be oversimplifying the systemic racism. Before you can make such a claim, you need more granular information on the types of masters degrees that blacks and Hispanics obtain as compared to whites and Asians. I bet what you will find is that more bachelors and masters degrees obtained by blacks and Hispanics are the types of degrees that rack up big financial aide debt while providing limited job opportunities. I tell my kids all the time that they should only go to college if they plan on obtaining a degree that will get them a high paying job. College used to be a place where a degree almost guaranteed you a job. Now with degrees in women’s studies, African studies, gender equality, social sciences, etc., most of the degrees get you a job working at McDonalds. Its too bad that colleges have convinced kids that any degree will provide a living wage. Unfortunately this is not true.
I appreciate the sentiment behind your statement: “In an ideal world, it would be wonderful if everybody could have an equal chance to become a millionaire by race, by age, and by educational achievement”
However, if everyone were millionaires, would that just drive up prices until mid-single-digit millionaires would have the same quality of life of the people at the median net worth today? In such a scenario, you would need an 8- or 9-figure net worth to achieve FIRE.
That is true. If we are all make $1 million a year or have a net worth of $10 millionaire a year, then we are all the same. To get ahead, you must outperform. To feel wealthier financially, you must have more than the average or median.
With interest rates so low, a $10 million+ net worth may very well be necessary now to achieve FIRE.
What’s nice this time around is that consumer price inflation has remained low even as rates have gone lower. Perhaps the entire world economy will Japanify as an ever increasing amount of assets held by the saver class chase an ever shrinking amount of growth/investment opportunities, of which alot will just stem from less roofs needed to house people.
If this is the case $1 million may remain more than enough for financial independence. yes you won’t be able to compete for the housing in nice school districts or buy the latest veblen goods trends of the saver class, but compared to the spender class subsisting on basic income, you’ll be able to afford far more then canned beans and video games.
I believe if we all had equal chance to be a millionaire that doesn’t mean we would all be one. Many people still would rather have an average job and do not want to take the risk of running a business or owning real estate. A lot of people just want to be comfortable and not have to worry about money.
Also, there are several billionaires in the US. Hypothetically …If that money was redistributed and we had more millionaires instead I don’t believe that would cause much inflation. So I do support stronger monopoly laws as a way to open the door for more millionaires