How Long Does It Take to Become a Millionaire? (2024)

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How Long Does It Take to Become a Millionaire? ›

There is another way most self-made millionaires are similar to one another: It took them a long time to become one. According to data compiled by Rich Habits author Thomas Corley, it took the average self-made millionaire 32 years to achieve that.

The time it takes to become a millionaire depends on how much you save and the return you get on your money. If you invest $1,000 per month and get an 8% annual return, you'll be a millionaire in 25.5 years. The key to being a millionaire is to start investing right away and to be consistent about it.

“It's very difficult to become a millionaire in one year, even under ideal circ*mstances,” said Jake Hill, finance expert and CEO of DebtHammer. “Building wealth is a time-consuming process that involves careful planning and a solid strategy.”

Becoming a millionaire is a dream for many, but it is possible to achieve with focus and determination. While a sudden windfall or lucky break can accelerate the timeline, true millionaire status usually requires diligent effort over decades.

Millionaires — those who have a net worth of at least $1 million —are, perhaps not surprisingly, on the older end. They're predominantly 55 and older; just 2.4% are under the age of 35.

The average age of a first time millionaires is 37, it has been found. In data released by Betway Insider, the average age of a first time billionaire is also revealed: and is a little higher at 51. So, if you're not quite there yet, what can you do to make your first million?

Millionaires comprise about 8.8% of the American population. The average net worth of a millionaire in the U.S. is $2.2 million, according to Charles Schwab's 2022 Modern Wealth Survey. New Jersey boasts the highest rate of millionaires, with nearly 10% of households having a net worth of $1 million or above.

While becoming a millionaire after 40 requires effort and sacrifice, it's possible in less than a decade through smart budgeting, higher earnings, disciplined saving and calculated risk taking.

A middle-age Millionaires' Row: Average 50-something now has net worth over $1 million. Sometime around age 50, the average American can now expect a household net worth exceeding $1 million. How did so many 50-somethings become millionaires? Household wealth swelled at a record pace during the pandemic.

How do millionaires live off interest? ›

Living off interest involves relying on what's known as passive income. This implies that your assets generate enough returns to cover your monthly income needs without the need for additional work or income sources. The ideal scenario is to use the interest and returns while preserving the core principal.

Introduction. Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings.

It's never too late for anything in life — not even to become a millionaire as you're approaching your golden years.

In fact, most Americans are unlikely to ever become a millionaire. Estimates vary, but they range from about 12 million to 24 million millionaires in America. While that sounds like a lot, even the upper limit of that range is less than 10% of the approximately 332 million people in the U.S.

If you take your $100,000 and put it in an S&P 500 index fund, you could end up with over $1 million within 24 years if the index produces returns in line with its historical average. If you keep saving, you can get there even faster.

If invested with an average annual return of 7%, it would take around 15 years to turn 500k into $1 million.

Following the same math, 12% gains double your money in six years. If your investments earn 8%, you'll have twice as much in nine years. Presuming the stock market's approximate historical return of 10%, $200,000 becomes $400,000 in 7.2 years, then $800,000 in 14.4 years and finally, $1.6 million in 21.6 years.