There is more wealth out there than you think. But the government and media sometimes likes to trick us into believing there is not.
Government data says the median net worth in America is around $200,000. Meanwhile, the media keeps highlighting financial struggles, convincing us there’s a looming retirement crisis. But what gets overlooked is the tremendous wealth built over the past few decades—thanks to saving, investing, and riding the greatest bull market in history.
Enter: the rise of everyday middle-class multi-millionaires.
Wait, what? Middle class and multi-millionaire in the same sentence? Sounds like an oxymoron, right? But I assure you, they exist—and in far greater numbers than most people realize.
During the consulting promotion for my USA TODAY bestseller Millionaire Milestones, I had the privilege of speaking with some of them. Maybe I'll get to speak to you too as the promotion runs until June 15. Details below.
Why “Middle Class” and “Multi-Millionaire” Can Coexist
The confusion comes from how we define wealth. Most people, especially those outside the personal finance community, equate wealth with income. The more you make, the richer you are, so they say.
I have indisputable proof: a 2025 Bloomberg article written by four journalists analyzed who qualifies for free college financial aid solely based on income. Not once did they mention assets or net worth in their evaluation. That blew my mind.
These were smart journalists from elite schools—Texas, Duke, USC, and Columbia—writing for a major publication. There’s no way I, or my children, could get into any of these schools. Yet somehow, they missed a fundamental component of what truly defines wealth.
When society talks about the “middle class,” it's usually referring to income. In 2025, the median household income is around $80,000. One could define a middle-class income as anything +/- 50% of the median, or $40,000 – $120,000 in this case. For a family of three, the top of the middle class is about $188,400, inflation-adjusted. In contrast, the top 10% of earners in 2024 had to make at least $235,000 according to Pew Research.
In expensive cities like San Francisco or New York, a family of four might need $300,000–$350,000 just to feel middle class. People balk at that range, but the budget math doesn’t lie in my post. Thanks to inflation, life is only going to get more expensive over time.
Personal Finance Enthusiasts Think Mostly In Net Worth
Those of us who are passionate about financial independence don’t only define wealth by income—we prefer to define it by net worth (assets minus liabilities). Income takes effort and gets taxed heavily. But growing investments? That builds wealth quietly, consistently, and tax-efficiently.
As we age and become less eager to trade time for money, net worth becomes the more meaningful metric. Our investments are what will generate enough passive income to live free. And with enough time, discipline, and smart investing, it’s very possible to become a middle-class multi-millionaire—even without ever earning a huge salary.
Let me share the story of one such person: Luis, a consulting client who has averaged under a $100,000 income in his 30+-year career. He enthusiastically encouraged me to share his financial profile to you to show what’s possible.
Here's his Social Security statement that shows his historical earnings.
Net Worth Composition
Despite averaging less than $100,000 a year during his career, Luis is a multi-millionaire with a net worth of around $4.8 million! That’s at least $1 million more than I expected for a man in his late 50s, just by reviewing his Social Security statement.
His family’s total assets amount to $6,090,000, offset by a $1,439,000 mortgage. He also has about $235,000 set aside for his children’s college education.
As you can see from his net worth breakdown, real estate has been his primary driver of wealth. Luis bought properties once he started earning a steady income and held onto them for decades. With real estate, much like stocks, the longer you hold, the more wealth you can generally build.
Luis’s second major wealth engine has been his disciplined contributions to his retirement accounts, especially his Roth IRA. Unlike me, Luis was eligible to contribute to a Roth for many years thanks to his middle-class income. Now, he’ll be able to withdraw from it tax-free for the rest of his life.
| Ranch | $1,950,000 | 32% |
| Rental Property 1 = | $1,188,300 | 20% |
| Rental Property 2 = | $947,300 | 16% |
| Luis' Roth IRA = | $1,386,237 | 23% |
| Luis' IRA = | $257,920 | 4% |
| Wife's Roth IRA = | $360,367 | 6% |
| Total Assets | $6,090,124 | 100% |
The Power of Being a Middle-Class Multi-Millionaire: Total Income Is Actually Much Greater
One final variable to highlight is Luis’s total income. While his base salary as a patent examiner is $130,000, his actual income is significantly higher thanks to his additional income streams. No wonder he’s able to comfortably provide for six children—his total income is closer to $365,000.
| Yearly Income: | % | |
| US Patent & Trademark Office = | $130,000 | 36% |
| USMC Retirement = | $71,700 | 20% |
| VA Disability (tax free) = | $37,200 | 10% |
| Rental 1 = | $64,800 | 18% |
| Rental 2 = | $40,200 | 11% |
| Cell tower lease payment = | $10,800 | 3% |
| Ranch income (variable) = | $10,000 | 3% |
| Total Income = | $364,700 | 100% |
In addition to his day job, Luis earns substantial rental income from his properties, cell tower income from his farm, a pension from the United States Marine Corps, and VA disability benefits. An impressive 65% of Luis's total income comes from passive income, which is taxed more efficiently. Incredible.
Don’t underestimate the value of working for the government. A pension is far more valuable than it appears at first glance. For example, to generate $71,700 a year in passive income at a 4% yield, you’d need $1,792,500 in investments.
If you include the present value of his pension and other benefits, Luis’s net worth could be closer to $6.4 million rather than $4.8 million.
Long-Term Asset Ownership Is Key To Becoming A Multi-Millionaire
The rise of the middle-class multi-millionaire will only continue as more people steadily invest over time. Luis is a great example. By serving his country and steadily building wealth for over 30 years, he’s now financially set for life.
His final financial goal is to pay off his mortgage before he retires from his retirement job. Together, we’ve created a game plan that uses income from his various sources—along with strategic Roth IRA withdrawals—to eliminate his remaining debt. Since he enjoys his job and plans to keep working for several more years, I have no doubt he’ll achieve this goal within the next decade.
With six children, Luis is also committed to helping them achieve financial independence as well. That deep sense of purpose and motivation is one of the greatest blessings of all.
If you want to become a multi-millionaire, you must consistently save and invest in assets that have historically appreciated over time. Real estate and stocks should be your bread and butter. And if you want, you can allocate up to 10% – 20% of your capital into alternative assets like venture capital, cryptocurrency, fine art, etc.
As Luis has shown, you don’t need a massive income—just the discipline to save and invest steadily. Over a 30+ year period, I firmly believe the vast majority of middle-class earners can achieve millionaire status in their lifetimes.
Readers, are you a middle-class multi-millionaire? If so, I’d love to hear how you were able to accumulate more wealth than the vast majority of the population. What were the key decisions or habits that made the biggest difference?
Also, what do you think is preventing more middle-class income earners from reaching multi-millionaire status? And why do you think society continues to focus so much on income instead of net worth when it comes to measuring financial success?
Resources to Build More Wealth
I’m offering 1-on-1 consulting at 41% off until June 15, 2025, before taking the summer off. You’ll also get 55 hard copies of my USA TODAY bestseller Millionaire Milestones to share with family, friends, and colleagues. Just fill out the quick form at the bottom of my consulting page. I'll get back to you within 24 hours.
Looking for a free tool to track your net worth and investments? Check out Empower. I’ve been using it since 2012 to monitor my finances and x-ray my portfolio for excessive fees. The more visibility you have into your money, the more effectively you can grow it.
Lastly, don’t miss my free weekly newsletter—trusted by 60,000+ readers—for real-time insights on investing, the economy, and my latest posts. My goal is to help you reach financial freedom sooner through hard-earned experience and actionable advice.
One theory on why society continues to value income more than net worth: income is more easily measured and more easily used for marketing purposes.
One example: when you’re applying for colleges, grad school, law school, etc., schools commonly advertise the average or median income of their graduates. Schools love to show off that if you go to their school, you’ll make a certain amount of money upon graduating.
However, you’ll never see data on the net worth of their graduates. Maybe that’s because impressive net worths can take decades of discipline to manifest. Just like Luis’ amazing story. That type of slow progress doesn’t make for sexy marketing for schools.
Plus, as you pointed out with the 4 journalists, a top flight education may help you earn a high income. But, it’s up to each of us to turn that income into a high net worth. Again, harder for schools to market that.
For my kids, I’d be way more impressed to see what schools crank out students with high net worths 20-30 years after graduation instead of the median income upon graduation.
Thanks Sam!
Matt
Hey Matt,
Totally agree — income is the flashier stat, but net worth is where the real story lies. You’re right: income is easier to track, easier to brag about, and fits neatly into a brochure or ranking system. Net worth, on the other hand, takes years of consistent behavior, financial discipline, and often a good bit of humility — none of which make for quick-hit marketing headlines.
I love your point about schools never advertising net worth outcomes. Imagine if they did! “Come to XYZ University — 62% of our grads become decamillionaires by 50 through index funds and frugal living.” Doesn’t have quite the same ring as “$150,000 median starting salary,” but I know which stat I’d rather my kids hit.
And yes, Luis’ story really hammers this home — steady, intentional progress over time beats flashy spikes any day.
Appreciate your thoughtful response as always. Great observation!
Best,
Sam
By definition, if someone is a multi-millionaire, they’re no longer middle class (regardless of income). Having a top 10 or 5 percent net worth is not middle class. It should be middle-class income multi-millionaire.
Totally fair point. You’re right that having a top 5–10% net worth technically puts someone out of the traditional “middle class” category. The term “middle class” is so often tied to income that we sometimes forget how much wealth can change someone’s actual financial security and lifestyle.
But oh how fun it is to think or identify with being a middle-class multi-millionaire. To be able to blend in with the crowd and pay reasonable taxes are great benefits!
Someone can live modestly, earn an average salary, and still build significant wealth through discipline and smart choices over time. It’s a reminder that wealth isn’t just about how much you make, it’s about how much you keep and grow.
Cheers
Are the number for rental income gross or net? I have a couple of rentals about half of those of Luis’s valuations, but I only net about $25k/yr for both. Most of the rental income get burned up in repairs, insurance, property taxes, new appliances, new roof, new toilet, new faucet, etc. etc. How is it that he can net so much, assuming those numbers are net? What kind of rentals are those?
It’s net, or mostly net. The properties are not in expensive coastal cities so the net rental yields are higher. High net rental yield are the main reason why I’ve been diversifying into non-coastal city real estate since 2016. I want that higher income as I slowdown.
Where are your rentals located?
We can speculate until the proverbial cows come home from the Moon, but I suspect one element as to why more people don’t do-as-we-do is simply a lack of knowledge. When I did public outreach in astronomy, I found many people of whatever background knew some things about it and had at least some interest in it. When I speak about finance topics to many different age groups, I’m shocked at the lack of knowledge about something that is key to just surviving in the USA. This is why I speak about these topics publicly, as it’s the best thing I can do to help people right now. We all need to nuke ignorance about finance, and as we have gained experience in this, we all need to find a way to contribute.
Those of us who are personal finance enthusiasts (as Sam puts it) are simply in the know and furthermore know where to get good information, which is critical. Most people confuse investing and gambling and they are smart enough to know that gambling is not a good long term strategy, so investing gets the same side-eye.
Ideas about saving are often also archaic, from people who think savers are mattress-stuffers to those who think they must give up all things that give life value in order to succeed in saving. Education is weak here and it’s something that can be changed by all of us.
Sam’s been doing his part for many years now, and we should all pitch in. If you’re not feeling generous about this, consider: we need more people to have million dollar net worth if for no other reason than that they will be able to buy your million dollar house when you want to sell it.
Well said — financial literacy truly is a public good. Most people aren’t uninterested; they’re just uninformed or misinformed. Confusing investing with gambling and thinking saving means deprivation are both common and harmful beliefs. The more we share what we know, the better off everyone is — not just for their future, but for ours too. A wealthier society benefits us all.
But one thing, I sure hope I can sell each property for more than $1 million. Otherwise, I’m gonna take a huge bath! It’s expensive out here in San Francisco. But OK, I’ll sell my lake. Tahoe two bedroom condo for that price. Fair enough. Ski-in ski-out is worth it!
that is why middle-class, or any “class,” based solely on income, is so hard to define. Assumes people need every dime the earn to pay the bills.
So true and the only investments most know, is the stock market.
Nice work, Luis! Your earnings history is fascinating, and your case study really highlights the power of long-term investing.
It also seems that those of us who enjoy reading about personal finance tend to be wealthier on average. When you’re surrounded by people striving for similar goals—staying disciplined, finding ways to grow income—it creates a powerful feedback loop.
I also think we’re more likely to seek out advice. Even a small shift in direction can lead to massive results over time. It reminds me of how a sailor can end up far off course if their heading is just one degree off.
SO the original meaning of the word SIN is to be wide of the mark. Which means that over time that compounds.
Thanks for sharing his journey because it’s an inspiring one. It’s hard enough to build and keep a steady income over a long period of time. But doing that while raising a big family, saving for college, and being so prepared for retirement takes real commitment and balance.
Love that he was he was intentional about his choices and kept the long game in mind. This is such a great reminder that financial stability isn’t just about what you earn, but how you plan, prioritize, and stick with it. thanks!
Incredibly impressive Luis! Bravo por tu trabajo y persistencia!
This is really a story that deserves showcasing. Many of us “get rich” by making a lot and saving a lot. Luis did it by earning well but investing superbly with whatever he had left over after paying for himself and his family.
Consistency is key and that requires, among other things, clarity of thinking, long term perspective, and stoicism; all attributes sorely lacking in most of our fellow humans.
Thanks for the write up Sam!
Bravo Luis, buen trabajo!