7 Millionaire Myths

[Ban Hammer 12,867]

We all have are preconceptions about millionaires: they're tax evaders who just inherited their money from rich Aunt Flo, and they hang around the golf course all day with their snobby, elitist friends. So what's the average millionaire really like? Here are seven millionaire myths, and the real facts about the ones who seem to have it all.

1. Millionaires Don't Pay Their Taxes

Fact: It is estimated that millionaires, those in the top 1% of earners, pay about 40 percent of all taxes. Current tax regulation shifts may change these numbers to make this even larger than that -- so think twice before accusing the millionaires in America of not paying taxes.

2. Millionaires Just Inherited Their Money

According to Thomas J. Stanley's book, "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," only 20% of millionaires inherited their riches. The other 80% are what you'd call nouveau riche: first-generation millionaires who earned their cash on their own. Many millionaires simply worked, saved, and lived within their means to generate their wealth -- think accountants and managers: regular people going to work every day. Most millionaires didn't get their riches overnight when a rich relative died -- they worked for the money.

3. Millionaires Feel Rich

From the outside looking in, you would think that millionaires feel rich and secure, but that's not so. Most millionaires worry about retirement, their kids' college fund and the mortgage just like the rest of us. Those worries are greatest among new millionaires, the people who just recently acquired their wealth.

4. Millionaires Have High-Paying Jobs

It certainly doesn't hurt to be gainfully employed, but half of all millionaires are self-employed or own a business. It does help to have a college degree, as about 80 percent are college graduates, though only 18% have master's degrees.

5. Millionaires All Drive Fancy Cars

You can get that idea of the rich guy in a fancy German car out of your head when you think of a millionaire: They actually drive a Ford, with the carmaker topping the millionaire preferred car list at 9.4 percent. Cadillacs run second on the millionaires' favorite car list, and Lincolns third according to onmoneymaking.com.

Car payments are an investment with little return, which is why someone looking to grow wealth avoids high-priced vehicles in favor of a more economical set of wheels.

6. Millionaires Hang Around the Golf Course All Day

Those millionaires are all retired, with nothing else to do but hang around the golf course, right? Wrong. Only 20 percent of millionaires are retirees, with a full 80 percent still going to work. It's not as glamorous or fun, but millionaires go to work just like you do; it's how the money gets in the bank.

7. Millionaires Are Elitists

We've already established that most millionaires earned their money and not inherited it, still go to work, drive a Ford, and worry about their kids' college expenses. Sounds a lot like the rest of America, right? Millionaires come in all shapes and sizes -- some may be elitists, but most are just regular Joes who successfully managed their money.

The Bottom Line

Maybe you see a pattern here: Today's millionaires are people who live within their means, budget and spend wisely, and focus on financial independence first. These are habits that take discipline, but ones we can all adopt to begin growing wealth. If these facts prove anything, it's that every one of us can strive to become a millionaire -- you can start by driving your old car with pride.

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[Heracles 417]

If these facts prove anything, it's that every one of us can strive to become a millionaire -- you can start by driving your old car with pride.

Even the 60 + million Americans in poverty right?

[Nagishkaw 510]

[lostinblue 1,989]

Even the 60 + million Americans in poverty right?

Just don't become a single unwed mother at the tender age of 16 and you would get rid of about 10 million living in poverty.Finish high school also would help.

[Jenn! 918]

The Bottom Line

Maybe you see a pattern here: Today's millionaires are people who live within their means, budget and spend wisely, and focus on financial independence first. These are habits that take discipline, but ones we can all adopt to begin growing wealth. If these facts prove anything, it's that every one of us can strive to become a millionaire -- you can start by driving your old car with pride.

What a bunch of rubbish. Not that those things aren't true, but it's silly to think that everyone can "strive to become a millionaire". Not that a million bucks is what it used to be.

[Heracles 417]

What a bunch of rubbish. Not that those things aren't true, but it's silly to think that everyone can "strive to become a millionaire". Not that a million bucks is what it used to be.

That sort of carrot dangling has been used for years to con Americans into a false sense of access to prosperity. The this is America damnit and you can become anything cliche / slogans, are simply not supported by reality. Getting on your feet here [with nothing] is 200 times harder than doing so in Europe, Canada or Australia.

Many also ignore things like 20% of the country holding 85% of the wealth.

[Ban Hammer 12,867]

What a bunch of rubbish. Not that those things aren't true, but it's silly to think that everyone can "strive to become a millionaire". Not that a million bucks is what it used to be.

everyone can strive, nothing says they will achieve it.

[one...two...tree 2,762]

"No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money."

-Matthew 6:24

"Then Jesus said to his disciples, 'I tell you the truth, it is hard for a rich man to enter the kingdom of heaven. Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.'"

-Matthew 19:23-24

"People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs."

-1 Timothy 6:9-10

"Do not exploit the poor because they are poor and do not crush the needy in court, for the LORD will take up their case and will plunder those who plunder them."

-Proverbs 22:22-23

"The wealth of the rich is their fortified city; they imagine it an unscalable wall."

-Proverbs 18:11

[Heracles 417]

Just don't become a single unwed mother at the tender age of 16 and you would get rid of about 10 million living in poverty.Finish high school also would help.

I agree, I have mentioned this myself before.

That said, cut-throat competition due to such a massive population, with more being pushed into college, means even those with a degree soon will be the equivalent of factory workers. With the ease of sending work to India, less and less Americans are being employed to do the work here. Then you have the technological factor, where more and more machines and software are replacing workers.

Starting from zero and obtaining the million dollars, is becoming harder and harder in America.

[Jenn! 918]

everyone can strive, nothing says they will achieve it.

Right, so in light of that, don't you find that last paragraph terribly patronizing?

[Ban Hammer 12,867]

Right, so in light of that, don't you find that last paragraph terribly patronizing?

not really, as i have a 14 year old car i drive every day.

unless you were referring to the living within a budget/spending wisely.

[Heracles 417]

everyone can strive, nothing says they will achieve it.

The question is how many actually do achieve it? Particularly in your neck of the woods, where they're not exactly doing too well at all now are they. In the 50's and 60's, the middle class killed it. That was a time when the wealthy paid up to 95% in tax, most jobs were in the US and the CEOs rightfully earned 10 or 20 times their workers salary.

Repubs and especially libertarians don't seem to like those times, much rather prefer the present, where most in middle-American states are poor but assume they have the 'opportunity' to become rich, if they wanted to of course.

Personally, I am doing too bad at all actually, yet I too prefer the 50's and 60's style of environment, where everyone is doing well and the country as a whole is booming. Rather than the Mr Potter times, when few are wealthy and the rest of the country is poor and struggling.

[Jenn! 918]

not really, as i have a 14 year old car i drive every day.

unless you were referring to the living within a budget/spending wisely.

maybe you see a pattern here...these are habits that take discipline...

Sounds like a snooty millionaire telling some blue-collar guy, "you could be like me if only you were a little more disciplined."

being a millionaire is simply unachievable for a significant part of the population. statements like this just reinforce the belief that poor people are poor because they're lazy and lack self-control. sometimes the case, sometime not.

[mawilson 2,133]

Even the 60 + million Americans in poverty right?

Some people will always be in poverty, even if you give them a million bucks.

[mawilson 2,133]

"Then Jesus said to his disciples, 'I tell you the truth, it is hard for a rich man to enter the kingdom of heaven. Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.'"

-Matthew 19:23-24

So the kingdom of heaven is like an inner-city ghetto?

Edited August 30, 2010 by mawilson