Great video! Speaking as a divorced person, I caution people who are staying in an unhealthy marriage because they fear the financial consequences. I was able to rebuild into 7 figures after divorce (I am only 41). Both of us were saving aggressively into our retirement accounts and those assets were protected. The lesson being that good financial decision-making early in life can help weather these types of unexpected financial blows. Don't marry for money. Don't stay married for money.
Under the subject of procrastination, I remember talking with my son when he was in college and telling him that most people underestimate the power of small decisions. I then quoted him the old adage of " sow a thought and reap an action . Sow an action and reap a habit. Sow a habit and reap a character. Sow a character and reap a destiny ."
I would caution, coming from someone who's been on the inside, that those income numbers published by college websites are going to be hyper-inflated. colleges use a lot of predatory marketing and will publish completely insane expected income for graduates of a specific program to attract students.
Hopefully students are doing their own research beyond what colleges are saying what their income will be, like talking to someone actually working in the industry.
Also, I had no idea how much I would be paid for my degree. I am as a federal employee and my college did not benefit me at all in my job, but they allowed me to start a lucrative side hustle. I also qualify for public service student loan forgiveness, which did not exist when I started racking up over 250K of student loan debt.
I'm a 34 year old male, married with one child. Our net worth is about 250k right now. Paid through school on my own. Never had any debt except for a mortgage. I make about 250k per year in anesthesia. I just started working in my profession about 18 months ago, so our net worth has really started to take off since then. Very happy to have found you guys during my graduate schooling.
Student loan debt is a wealth killer. Consider community college for first two years with credits 100% transferable to a quality state university. Nobody will ever know as your bachelor's degree will have the state university name on it. Glad you mentioned it during your video. Another great video gents.
TLDW: Earn over $200k a year, save and invest more than 25% gross income, be tax efficient with how you save/invest, do not use debt to get through college, buy property early. There seems to be a BIG age bias in some responses, particularly the ones dependent on time (debt load after college and down payment on first home purchase). With much of the millionaires surveyed being older, they are also more likely to have gone to school during a time where college debt was lower or not needed. Similarly, buying a first home with lower down payment was far more achievable decades ago, when house prices to income was a lot more accommodating for this kind of arrangement.
I went to college 30 years ago and my private college annual costs were around $45k so I think the results apply. It sounds like most of the responses indicated that they either had parents that paid the bulk of the costs, didn’t go to expensive schools or coupled scholarships and grants with student loan debt.
@@keemiel4005 average tuition in ‘92 for a private school was right at 10k so you must have been at an incredible outlier of a school cost wise. The stat they gave is still very inaccurate and convenient for the points they were making
@@johnbru4684 The tuition at elite private colleges at the time was around $20k which amounted to around $45k in total costs (incl. room and board and expenses) annually. Tuition alone at my alma mater today is around $60k/year. That’s the average today for an elite private American college education. I think the show has disclosed previously on one of these surveys that the vast majority of their millionaire clients attended public universities so the costs would be dramatically lower.
@@keemiel4005 in a world where the average public school loan balance at graduation is close to 30k, I just don’t think providing stats that basically none of their millionaires come out of school with over 50k is not great when most went to school in the 80s and 90s. Unless you went to an elite school with no financial assistance, it was hard to accumulate that much debt in 4 years
Beginning with the end in mind is probably the best advice. Unexpected things happen but if you want kids in two years don’t buy a brand new sports car for your daily driver. Making financial decisions for the long term will help so many people.
We worked hard and sacrificed for years. Life through us our share of curve balls, but we stayed with the plan and reached financial independence. Today we are retired with plenty of resources. We are able to spend and help others as we wish. Yes, the effort is worth it.
One major key for me is learning to be content with what you have .We live in a marketing world , that at every moment it's telling you that your self worth is in the things you have, the latest phone, the bigger house, the shiny new car and if you have these things you matter and will be happy, it's a big lie. Trying to keep up the appearance of wealth will keep you broke and miserable because of the maintenance. Live simple be content and wealth will come naturally and people won't even know how much wealth you actually have.
A little hypocritical that 74% of respondents didn't need to take out student loans, yet 71% of respondents say they didn't get any contribution from family that led them to become a millionaire.... Kind of shows the mentality of your average millionaire, thinking they did it all on their own without giving credit where it is due. The average student loan debt for graduates is $26,000. Someone whose parents paid for their college effectively received a $26,000 inheritance at 22. Compounding $26,000 at 10% with no other contribution turns you into a millionaire by age 61. The majority of these people have absolutely no idea how much of a leg up they had. As long as they didn't screw-up, they're heavily favored to become millionaires.
Agree 100 percent, I'm a psychotherapist and changing your mindset is a modality I teach my clients in cognitive behavioral therapy. Especially, is called the cognitive triangle. The premise is that our thoughts control our emotions and our emotions influence our behavior. Thus, if we are always thinking negatively, we're going to feel discouraged or sad and may not go after our goals as a result. You change your thoughts and you will generally change your emotions.
93% inherited SOMETHING. Which also means they had parents who had something to pass along. Which means only 7% had parents who had nothing to pass along. It's not about the money, it's about having financially literate parents, and that absolutely makes a difference
And it would be interesting to see how many of their parents paid for college. Walking out of college debt free is a huge jumpstart. Or if they bought them their first car or helped with a down payment for a house, etc.
Love the content! For future videos, I would love to see "baseline" data (i.e., average American / non-millionaires) to compare to the data for millionaires. I think that would better highlight which habits and behaviors millionaires have that others generally don't.
I've had the behavior down for a long time now. What I did not have was the financial education on how-to of investing, I simply did not know better, so zero regrets here. And so here I am at age 48, debt free, a paid-off home, and $100k in cash savings (2 years alone). I am ready to get my "toes wet". Thank you for this great content. I'll shoot for 1/2 a millionaire!!
This was such a great episode. I love hearing about how other people did it and how their wealth came about. I also can't wait to get to 7 figures (hopefully before we turn 40). Thank you Brian and Bo, great stuff!
This is terrific data overall - thanks for sharing!! I can’t help but wonder if many of these responses are generational in nature. Those from older generations more likely put less down on their first houses, went to public universities, etc. Would have been interesting for all of those statistics to break it down by age as well. Thanks for all you guys do!
If you stay married, it shows you're committed to making things work through thick and thin...and in order to have a high net worth, it also takes commitment through hard times and easy. They do correlate, though one doesn't cause the other.
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
Absolutely loved this show. I have read Millionaire Next Door, Financial Peace, Everyday Millionaires and The Next Millionaire Next Door. Was a big DR Baby Step fanatic and now I switched over to the FOO.
Young people, please don't sleep on community College or online colleges that are reputable, like WGU. You will save so much money and time. I'm in my late 20s now and am so grateful to have an accounting degree from online university. It immediately ROI'd and I love my accounting career.
Weird to be the normal? Married 30 years. 1st M at 47. Earn a little over 200K. Always been optimistic about everything. Could exercise more. 10% on our first house. 30% on our second and current home. Finance became important at 27 with my first real earning job and 401K exposure. Never had any student loan debt for either of us or our children. Keep a small 3-month emergency fund in cash but we could access about years' worth of money with little hardship or taxes being generated. Save better than 25% each year, boring but consistent. We've always lived below our means which allows for our aggressive savings program. We started at zero and never inherited a dime. Definitely a saver/investor. Same job since 27 and working until retirement at 55 in a few years. -Other thoughts, I would have liked a bigger after-tax bucket to retire sooner but my job isn't bad and the prospect of employer medical and penalty free 401K access at 55 are too attractive to leave on the table. Sorry if that shares too much but for those of you out there just know that you're not alone. We all think this way!
Love the data! IMO the biggest difference between public/private college is networking and having a foot in the door for different opportunities. If anything, I think part of picking a college should be who recruits there less than what majors are popular.
Halfway through the video and am at the point where they discuss kids. This is probably my biggest regret in life. My wife and I didn’t have one until 30. We are both in our mid 30s now and haven’t been able to have another one since. We wanted to be financially responsible and wait but now my chances of having a large family are close to zero. In a way it reminds me of the movie idiocracy.
I totally agree with what you are saying ....Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
I’ll take investments in stock any day they’re very remunerative only problem I’m having is I really don’t know how to go about it,I do get lost and overwhelmed by the markets. Any solid pointers in reaching this trader would be helpful,I’d appreciate if I got a reply
Love your channel! Have been listening on and off since 2018. Retired this past year myself at 55. My profile matches up very closely with all of your “millionaire” statistics. I use your material to educate young people in my network on personal finance and how my wife and have done it. I have one comment on this video around college costs and debt. The stat of $50k or less in debt (from your millionaire clients) really needs to be inflation adjusted. The clients you polled are on average 50+ years old. So their $50k (or less) in student debt was in 1992 dollars. Adjusting for inflation their $50k is the equivalent of $106k (or less) in debt for a 2022 graduate. That said, I generally agree with your guidance of keeping debt less than you 1st year salary. And I most certainly agree with d 0:00 oing a cost benefit analysis of the major studied vs cost vs income potential and choosing wisely. Where/how you get the degree isn’t as important as what degree you get. I’m also a big fan of the trades and believe there is a lot of income opportunity there right now for young people. I don’t know any HVac, plumbers, or electricians right now that are worried about staying employed.
In terms of combined accounts. My wife and I have our income and assets combined but have separate individual accounts that we divert an “allowance” to. This can be used for hobbies, gifts, expenditures that we can’t get the other to get behind, etc. It allows for the indivuality that we don’t want to lose when combining assets
I had to tell my grandchildren when they brought it up that a million dollars isn't all that much money any more. When wifey and I were young newlyweds it was, but that was over fifty years ago. We've had well over a million in net assets for a few years now and if there are any secrets, we don't know them. It's just a matter of saving and investing, saving and investing.
You income minus expenses was your biggest advantage besides what you bought with it. Either way it took some luck to reach millionaire status even back then!
I put down 45% down on my first (very nice) home, paid off the 15 year mortgage in half that time, and have lived mortgage free now for 22 years. At some point I will downsize. My daughter will get married in the summer, and my wedding gift will be the down payment for a home. I want to give her the chance at home ownership sooner than she would otherwise have.
Honestly before people enroll in college there should be a conversation about what major they are gonna get and then be forced to have a genuine conversation about the career realities of that major. It also should come from the parents because we need to stop schools becoming second parents for kids. The schools are overburdened as it is
Did you ask how many of your millionaires became millionaires through investing in target date funds as you recommended? Just curious as I use TDF's myself but they tend to get bad reviews on youtube
Watch motley fool’s second interview with Jack bogel, inventor of index funds at vanguard. He says that a higher allocation into SP500 is what he should’ve done. He was 50/50. SP500 fully invested until a few years away from retirement, then stock pile cash/bonds last few years of working
This may be an off the wall question but where can i get a schedule to see speakers like shaquille oneal, dave ramsey and etc. im at a new level in life and i would like to be among people thats looking and want financial wealth….
Following your stats, is paying for college considered as receiving an inheritance? So many of them didn't take a loan for college and have a college degree in their field.
Less than 9% of k-12 kids go to private school, probably less when these respondents were in school. Yet they didn’t think it significant that 22% of their millionaires went to private primary education? It more than doubles your chance of being a millionaire based on their stats. Says quite a bit imo.
I'm excited to see what the average age will be for crossing the 1m threshold in 10 or 15 years will be. Something more like 45 years of age? Which makes me feel like that should be aiming for that target. What do you guys think the average for other financial categories( savings, 401k, average age to buy a home) would be? Also to be fair, if the average age is 49 andthey received a 10k inheritance at 19. If they matched the S and P it would be worth close to 200k
From an education standpoint it would be interesting to learn more about private vs public grade schools (instead of college). I think this is a big financial decision for parents and probably has more relevance
Median household income is around 70k in the US. In your survey, only 3% of millionaires have income under 75k. Hard to claim everybody can be a millionaire. It's more than half the population that can't really...
Another great video. I think I am working backwards on your videos but I am subscribed. I am a widower. I am 62 now and I am semi-retired. My wife died on active duty in the US Navy in 2014 and is buried in Arlington National Cemetery. I miss her deeply to this day and forever. Her birthday is tomorrow 09JAN2023. Your advice as I said before is phenomenal. People would be remiss if they did not subscribe to your channel. I am telling them about your channel.
Curious if there’s a breakdown of public/private and home schooled for the millionaires you surveyed, maybe next year you can add that as an option. 11:58
Hey money guys! will you guys go over what a CBDC ( Central bank digital currency) is and how that would effect future savings. Because the government is at the beginnings of rolling this out mid 2023.
What is the financial order of operations? I’m a multimillionaire who was an RN. I went to school after I finished having my 4 children. My husband did not make a lot of money and I mostly went to school for free (low income). University was 4 miles from my house. I went to work, but didn’t actually start saving until age 48. I was very aggressive with my savings at that point, saving all my overtime money (35%). When I was 59 1/2, I purchased a 4 unit property, borrowing the money from my 403B. 6 months later I bought my second property ( a 12 unit property with 8 storage units). Our house waspaid off, so I used a HELOC on my house for the downpayment. Then a year later, I bought a duplex that was in such poor condition that I didn’t think anyone would give me a loan for. I paid cash for it and began to renovate with my overtime money. The 12 unit I just sold for 1.5 million (which they overpaid for by almost 300,000 because I wouldn’t sell unless I got what I asked). I then took the proceeds, arranged for a qualified intermediary to hold it and purchased two Delaware Statutory Trusts. I still have the 4 plex and the duplex, but I’m putting the duplex on the market soon. It is in a transitory neighborhood and I presume I should be able to get $180,000 with all the work that has been done on it. I only bought real estate because I didn’t think we had enough time to save for retirement. There was a lot of money, Blood, sweat, and prayers that went into my ventures. But I’m 66 now and retired and I happy with the results of my work and prayers and planning.
College drop outs in my experience have a higher likelihood of going on to be successful business owners. Reason? A college degree in great percentages limits your upside due to a comfortable living as middle management.
I'm surprised that the survey did not include any questions about having children and how many children does that not impact your road map to millionaire status?
I would bet that another survey will reveal an equal amount of people who lost millionaire status through divorce. We don’t all choose the best spouses early in our lives.
You may be right, but what all the data tells me is that picking the right spouse may be one of the most important financial decisions you will ever make
Hold on, didn’t you guys delete this the first time y’all uploaded a few days ago? Was it because y’all accidentally kept the cut in where Bo counted y’all in on the live? 🤔😭
I think the math behind 80% of millionaires are first generation is misleading, in the 80s there were only 500k millionaires in the 90s around 3 million and today around 20 million. So when we look at those numbers it's obvious that the number of first generation would be disproportionate especially when factoring in the massive inflation experienced with any economy growing. So, as a base statistic sure that makes sense but I imagine that when you really boil it down someone from a wealthy household will be far more likely to lead a successful life and attain millionaire status because the things which lead to financial wealth are transmutable from parents to children. Just to put it in perspective with the 20m millionaires current stat 6.3% of Americans. 30% of children produced by millionaires will be millionaires this meaning that 30 out of a hundred children of millionaires will be millionaires where as only 6.3 out of a hundred children with parents who weren't millionaires will not become millionaires. It's truly just an odds game and you'll always be better off if the people at your starting line actually know how to run.
Yeah, I remember seeing those numbers and just thinking, “well these are misleading numbers when you take everything into consideration.” Even looking at the statistics for low income people moving to middle class shows that it is heavily against low income people.
Also, I think people who self-report that they didn’t receive inheritances tend to not recognize certain monetary gifts they received that weren’t cash or as a result of a family death.
@@franklintyler4652 I said “I think” that. It’s my perception. For instance, people who receive family assistance with weddings, home down payments or other gifts that have monetary value may not view those items as an inheritance but I would.
The statistician in me is frustrated by how the data is being presented in this particular episode - correlation does not imply causation and there is no actually measurement of what your millionaire clients are doing relative to what non-millionaires are doing. Where's your control group? There's a lot of assumptions/implications about what millionaires are doing differently than non-millionaires and no evidence to back it up. I normally like your content, but this episode is super disappointing. It's clear you started with your end points and looked for data to support it not the other way around.
Same for me, it is in a regular savings account. With time, my emergency fund became a small portion of my portfolio and I just don't care anymore about placing it, but I appreciate being able to pull from it with no hasle
When you mention that the wealth is gone by the third generation you never seem to take into consideration that the inheritance is SPLIT among the children. If my wife and I leave $1 million to our three children, they only get $333,000 each. That's enough to rebuild to $1 mil. But the child has to be disciplined and intentional to do it. If they spend it, then it is gone.
Love yalls content but wish you would have compared public school attendace for millionaires compared to population as a whole (like how you did for work related to major). Less than 10% of k-12 is private but 22% of millionaires went to private school. This may be disheartening for some but is statistically relevant.
It would be interesting to see if family funded schooling (primary, secondary, college) is included in the “under $10k inheritance” stat. Similar question for down payment on first home.
You talk a lot about what share of the millionaires did something, but that doesn't really matter unless you compare it to general population. If 80% millionaires did something that isn't indication of something that helps you become a millionaire if 95% of everyone did so.
I do agree that is a shortcoming of a lot of these millionaire studies. As Nassim Taleb says: "You need to look in the graveyards, too." It is survivor bias. What percentage of people do these things but DON'T become millionaires? Having said that, I do think the stats and surveys are super interesting and can reinforce good financial behavior.
Well, it makes sense, because the millionaire who is divorced probably had over $2 million before....but as they say...the reason divorce is so expensive is because it's worth it....🤔
Most of this is useless for a lot of people, you admit it yourself that a majority of those surveyed make 6 figures while the national median income is less than $70,000. I want you to survey those people and talk to them about retirement, then we'll find some relevant information.
I could be wrong here, but those numbers could be peoples’ incomes WHEN they attained millionaire status. Their journey could have started much sooner when they weren’t making as much money. I wish the money guy staff had specified that, because it makes such a huge difference in what those numbers mean.
@J-Dawg statistically, most people dont make 6 figures. Hence their point about relevance. Discussing how the top 20% manage to save a bit of money over a couple decades isn’t particularly interesting. There’s not a lot to learn there. “Just make more” is even less interesting so spare everyone that nonsense before you get started.
@@bishikon where did you get 70 x 2? Tell me you dont think median household income is 140k.. because I regret to inform you it is LESS THAN HALF of that...
If I were to be a millionaire, I would share...absolutely nothing. There is no way I am going to share any of my "secrets" (and certainly not on the internet) because a secret shared is no longer a secret. I am a big fan of stealth wealth. And although I am not a millionaire, I am wealthy enough to keep it to myself and live a normal life without anyone knowing how much I have. Nobody coming to me with some "business proposal, nobody asking for a "break", nothing of the sort. It's safer to be quiet.
Maybe they're all not in much college debt because college was actually affordable when they went. Like seriously how disconnected from reality can you possibly be.
44:19 "That's the only way this 80%, close to 80% number consistently shows up in the data." This statement is not true. Let me give you a simple example. On an island with 10 households on it. Initially, there are 2 millionaire households. One generation later, the other 8 households earn enough money to become millionaires. We have 10 millionaires now, with 80% (8 out of 10) of those being first generation. 0% of the original 2 millionaire households experienced any wealth destruction. The increasing absolute number of millionaires alone can cause this 80% first generation millionaire statistic, without any wealth destruction of the original rich families. This misrepresentation of data has been so widespread that it really annoys me to hear this again and again everywhere in the personal finance world.
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Great video! Speaking as a divorced person, I caution people who are staying in an unhealthy marriage because they fear the financial consequences. I was able to rebuild into 7 figures after divorce (I am only 41). Both of us were saving aggressively into our retirement accounts and those assets were protected. The lesson being that good financial decision-making early in life can help weather these types of unexpected financial blows. Don't marry for money. Don't stay married for money.
you filed for divorce. 90% chance
@GES81 What are you doing for dinner?
@@vanderumd11 Doesn't matter who filed. The point is, she made her own money and had it invested.
I'm divorced and it was a positive move. I love life and I'm not bad off financially either.
Under the subject of procrastination, I remember talking with my son when he was in college and telling him that most people underestimate the power of small decisions. I then quoted him the old adage of
" sow a thought and reap an action .
Sow an action and reap a habit.
Sow a habit and reap a character.
Sow a character and reap a destiny ."
Going to share this with my 18 year old.
Wow! Awesome quote.
I would caution, coming from someone who's been on the inside, that those income numbers published by college websites are going to be hyper-inflated. colleges use a lot of predatory marketing and will publish completely insane expected income for graduates of a specific program to attract students.
Hopefully students are doing their own research beyond what colleges are saying what their income will be, like talking to someone actually working in the industry.
@@barno65 you would hope so, but 18 year olds rarely seem to do their research... or do a very good job planning... or think for themselves.
@@TheeGreyGadgets That's true of most Americans in general.
So true. Colleges spew propaganda to get your tuition money.
Also, I had no idea how much I would be paid for my degree. I am as a federal employee and my college did not benefit me at all in my job, but they allowed me to start a lucrative side hustle. I also qualify for public service student loan forgiveness, which did not exist when I started racking up over 250K of student loan debt.
I'm a 34 year old male, married with one child. Our net worth is about 250k right now. Paid through school on my own. Never had any debt except for a mortgage. I make about 250k per year in anesthesia. I just started working in my profession about 18 months ago, so our net worth has really started to take off since then. Very happy to have found you guys during my graduate schooling.
Are you a CRNA?
Yes.
Save. Earn more. Save more. Stop buying crap. Boom. Millionaire. Like me at 42.
Did you become a millionaire investing in your 401K?
@@swinvesting6071 It is 15% of my NW
Student loan debt is a wealth killer. Consider community college for first two years with credits 100% transferable to a quality state university. Nobody will ever know as your bachelor's degree will have the state university name on it. Glad you mentioned it during your video. Another great video gents.
TLDW: Earn over $200k a year, save and invest more than 25% gross income, be tax efficient with how you save/invest, do not use debt to get through college, buy property early.
There seems to be a BIG age bias in some responses, particularly the ones dependent on time (debt load after college and down payment on first home purchase).
With much of the millionaires surveyed being older, they are also more likely to have gone to school during a time where college debt was lower or not needed.
Similarly, buying a first home with lower down payment was far more achievable decades ago, when house prices to income was a lot more accommodating for this kind of arrangement.
ONE OF THOSE IS NOT LIKE THE OTHERS...
totally agree that home prices to income ratio is vastly different even after adjusting for inflation. today’s prices are completely out of whack.
Although I agree with your points on student loan debts, most of your clients went to school 20+ years ago so the 6% over 50k is highly misleading
I went to college 30 years ago and my private college annual costs were around $45k so I think the results apply. It sounds like most of the responses indicated that they either had parents that paid the bulk of the costs, didn’t go to expensive schools or coupled scholarships and grants with student loan debt.
@@keemiel4005 when you say annual costs you mean housing and books and fees etc etc beyond tuition?
@@keemiel4005 average tuition in ‘92 for a private school was right at 10k so you must have been at an incredible outlier of a school cost wise. The stat they gave is still very inaccurate and convenient for the points they were making
@@johnbru4684 The tuition at elite private colleges at the time was around $20k which amounted to around $45k in total costs (incl. room and board and expenses) annually. Tuition alone at my alma mater today is around $60k/year. That’s the average today for an elite private American college education. I think the show has disclosed previously on one of these surveys that the vast majority of their millionaire clients attended public universities so the costs would be dramatically lower.
@@keemiel4005 in a world where the average public school loan balance at graduation is close to 30k, I just don’t think providing stats that basically none of their millionaires come out of school with over 50k is not great when most went to school in the 80s and 90s. Unless you went to an elite school with no financial assistance, it was hard to accumulate that much debt in 4 years
I was 53, and it was my first year making 6 figures. Most people say it's not enough to retire on, so I keep moving forward.
Beginning with the end in mind is probably the best advice. Unexpected things happen but if you want kids in two years don’t buy a brand new sports car for your daily driver. Making financial decisions for the long term will help so many people.
We worked hard and sacrificed for years. Life through us our share of curve balls, but we stayed with the plan and reached financial independence. Today we are retired with plenty of resources. We are able to spend and help others as we wish. Yes, the effort is worth it.
One major key for me is learning to be content with what you have .We live in a marketing world , that at every moment it's telling you that your self worth is in the things you have, the latest phone, the bigger house, the shiny new car and if you have these things you matter and will be happy, it's a big lie. Trying to keep up the appearance of wealth will keep you broke and miserable because of the maintenance. Live simple be content and wealth will come naturally and people won't even know how much wealth you actually have.
Stealth Wealth... Love it!!!
A little hypocritical that 74% of respondents didn't need to take out student loans, yet 71% of respondents say they didn't get any contribution from family that led them to become a millionaire.... Kind of shows the mentality of your average millionaire, thinking they did it all on their own without giving credit where it is due.
The average student loan debt for graduates is $26,000. Someone whose parents paid for their college effectively received a $26,000 inheritance at 22. Compounding $26,000 at 10% with no other contribution turns you into a millionaire by age 61. The majority of these people have absolutely no idea how much of a leg up they had. As long as they didn't screw-up, they're heavily favored to become millionaires.
At 15:45 is one of the best pieces of advise ever given on this show. Bravo.
Agree 100 percent, I'm a psychotherapist and changing your mindset is a modality I teach my clients in cognitive behavioral therapy. Especially, is called the cognitive triangle. The premise is that our thoughts control our emotions and our emotions influence our behavior. Thus, if we are always thinking negatively, we're going to feel discouraged or sad and may not go after our goals as a result. You change your thoughts and you will generally change your emotions.
93% inherited SOMETHING. Which also means they had parents who had something to pass along. Which means only 7% had parents who had nothing to pass along. It's not about the money, it's about having financially literate parents, and that absolutely makes a difference
And it would be interesting to see how many of their parents paid for college. Walking out of college debt free is a huge jumpstart. Or if they bought them their first car or helped with a down payment for a house, etc.
Love the content! For future videos, I would love to see "baseline" data (i.e., average American / non-millionaires) to compare to the data for millionaires. I think that would better highlight which habits and behaviors millionaires have that others generally don't.
I've had the behavior down for a long time now. What I did not have was the financial education on how-to of investing, I simply did not know better, so zero regrets here. And so here I am at age 48, debt free, a paid-off home, and $100k in cash savings (2 years alone). I am ready to get my "toes wet". Thank you for this great content. I'll shoot for 1/2 a millionaire!!
This was such a great episode. I love hearing about how other people did it and how their wealth came about. I also can't wait to get to 7 figures (hopefully before we turn 40). Thank you Brian and Bo, great stuff!
This is terrific data overall - thanks for sharing!! I can’t help but wonder if many of these responses are generational in nature. Those from older generations more likely put less down on their first houses, went to public universities, etc. Would have been interesting for all of those statistics to break it down by age as well. Thanks for all you guys do!
If you stay married, it shows you're committed to making things work through thick and thin...and in order to have a high net worth, it also takes commitment through hard times and easy. They do correlate, though one doesn't cause the other.
I think it speaks to stats around financial stress strongly correlating to divorce
The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich
People prefer to spend money on liabilities,Rather than investing in assets and be very profitable
Despite the Economic recession ,I'm so happy☺️. I have been earning $ 60,000 returns from my $70, 000 return from my $6,000 on short term
How do you do that?. I'm interested??
This must be an investment with Mrs Margaret
She must be very popular I think cause I’m so surprised you mentioned her
15:55 is the key of the whole episode!!!!
Absolutely loved this show. I have read Millionaire Next Door, Financial Peace, Everyday Millionaires and The Next Millionaire Next Door. Was a big DR Baby Step fanatic and now I switched over to the FOO.
I agreed about getting serious early, because you'll focus on it and subconsciously see opportunities to reach that goal.
Young people, please don't sleep on community College or online colleges that are reputable, like WGU. You will save so much money and time. I'm in my late 20s now and am so grateful to have an accounting degree from online university. It immediately ROI'd and I love my accounting career.
Weird to be the normal? Married 30 years. 1st M at 47. Earn a little over 200K. Always been optimistic about everything. Could exercise more. 10% on our first house. 30% on our second and current home. Finance became important at 27 with my first real earning job and 401K exposure. Never had any student loan debt for either of us or our children. Keep a small 3-month emergency fund in cash but we could access about years' worth of money with little hardship or taxes being generated. Save better than 25% each year, boring but consistent. We've always lived below our means which allows for our aggressive savings program. We started at zero and never inherited a dime. Definitely a saver/investor. Same job since 27 and working until retirement at 55 in a few years. -Other thoughts, I would have liked a bigger after-tax bucket to retire sooner but my job isn't bad and the prospect of employer medical and penalty free 401K access at 55 are too attractive to leave on the table. Sorry if that shares too much but for those of you out there just know that you're not alone. We all think this way!
Any kids?
Love the data! IMO the biggest difference between public/private college is networking and having a foot in the door for different opportunities. If anything, I think part of picking a college should be who recruits there less than what majors are popular.
Twenty years after college literally, no one cares where you went to college.
32:20 "Credit card use OK, Credit card debt NO WAY"
Halfway through the video and am at the point where they discuss kids. This is probably my biggest regret in life. My wife and I didn’t have one until 30. We are both in our mid 30s now and haven’t been able to have another one since. We wanted to be financially responsible and wait but now my chances of having a large family are close to zero. In a way it reminds me of the movie idiocracy.
If your finances are in order, have you considered adoption?
I totally agree with what you are saying ....Stocks are falling and bond yields are rising, but markets still don’t seem convinced the Federal Reserve will pursue plans to keep increasing interest rates until inflation is under control. I'm still at a crossroads deciding if to liquidate my $117k stocck portfolio, what’s the best way to take advantage of this bear market?
I’ll take investments in stock any day they’re very remunerative only problem I’m having is I really don’t know how to go about it,I do get lost and overwhelmed by the markets. Any solid pointers in reaching this trader would be helpful,I’d appreciate if I got a reply
Sell cash covered puts
Liquidating stocks in a bear market is SELLING LOW.
Truly appreciate the dedication to getting this good information out in the open.
Yes we have a super power to get to where we are. Discipline.
Thanks for sharing. I appreciate you emphasize how flexible one can be in reaching wealth.
Love watching you guys, this was one of my favorites episodes.
Best financial channel on the internet.. Start taking calls in real time / get on XM or something similar?
Love your channel! Have been listening on and off since 2018. Retired this past year myself at 55. My profile matches up very closely with all of your “millionaire” statistics. I use your material to educate young people in my network on personal finance and how my wife and have done it.
I have one comment on this video around college costs and debt. The stat of $50k or less in debt (from your millionaire clients) really needs to be inflation adjusted. The clients you polled are on average 50+ years old. So their $50k (or less) in student debt was in 1992 dollars.
Adjusting for inflation their $50k is the equivalent of $106k (or less) in debt for a 2022 graduate.
That said, I generally agree with your guidance of keeping debt less than you 1st year salary. And I most certainly agree with d 0:00 oing a cost benefit analysis of the major studied vs cost vs income potential and choosing wisely. Where/how you get the degree isn’t as important as what degree you get.
I’m also a big fan of the trades and believe there is a lot of income opportunity there right now for young people. I don’t know any HVac, plumbers, or electricians right now that are worried about staying employed.
In terms of combined accounts. My wife and I have our income and assets combined but have separate individual accounts that we divert an “allowance” to. This can be used for hobbies, gifts, expenditures that we can’t get the other to get behind, etc. It allows for the indivuality that we don’t want to lose when combining assets
I had to tell my grandchildren when they brought it up that a million dollars isn't all that much money any more. When wifey and I were young newlyweds it was, but that was over fifty years ago. We've had well over a million in net assets for a few years now and if there are any secrets, we don't know them. It's just a matter of saving and investing, saving and investing.
You income minus expenses was your biggest advantage besides what you bought with it. Either way it took some luck to reach millionaire status even back then!
Property in the right location. Low debts.
I put down 45% down on my first (very nice) home, paid off the 15 year mortgage in half that time, and have lived mortgage free now for 22 years. At some point I will downsize. My daughter will get married in the summer, and my wedding gift will be the down payment for a home. I want to give her the chance at home ownership sooner than she would otherwise have.
Wow! Great discussion. Thanks for posting. Lots to think about.
Honestly before people enroll in college there should be a conversation about what major they are gonna get and then be forced to have a genuine conversation about the career realities of that major. It also should come from the parents because we need to stop schools becoming second parents for kids. The schools are overburdened as it is
Did you ask how many of your millionaires became millionaires through investing in target date funds as you recommended? Just curious as I use TDF's myself but they tend to get bad reviews on youtube
Watch motley fool’s second interview with Jack bogel, inventor of index funds at vanguard.
He says that a higher allocation into SP500 is what he should’ve done. He was 50/50. SP500 fully invested until a few years away from retirement, then stock pile cash/bonds last few years of working
When doing your charts could you make the numbers bigger and easier to read
Would love to see n-size for all of these % slides!
you touched on marriage.. but im interested on how many are males? are both spouses millionaires alone? jus wondering
Good show, as always. Where can I find the Q&A portion of this show?
For the household income group of $200 - 500k. How many of that 46% group make less than 350k a year? Where is the mean in that group?
Very encouraging. Thank you for all this great insight!!!!
This may be an off the wall question but where can i get a schedule to see speakers like shaquille oneal, dave ramsey and etc. im at a new level in life and i would like to be among people thats looking and want financial wealth….
31:35 I love how fixated they are on the 1-3 clients who carry a balance on their credit cards.
I hit 50 million several years ago. Sadly it was in Zimbabwe and all I could buy was a loaf of stale bread 🍞
Following your stats, is paying for college considered as receiving an inheritance? So many of them didn't take a loan for college and have a college degree in their field.
Less than 9% of k-12 kids go to private school, probably less when these respondents were in school. Yet they didn’t think it significant that 22% of their millionaires went to private primary education? It more than doubles your chance of being a millionaire based on their stats. Says quite a bit imo.
Love the Warren Buffet analogy. PS you don't have to be rich to exercise. That is just an excuse for those not willing to sacrifice.
I'm excited to see what the average age will be for crossing the 1m threshold in 10 or 15 years will be. Something more like 45 years of age? Which makes me feel like that should be aiming for that target. What do you guys think the average for other financial categories( savings, 401k, average age to buy a home) would be? Also to be fair, if the average age is 49 andthey received a 10k inheritance at 19. If they matched the S and P it would be worth close to 200k
From an education standpoint it would be interesting to learn more about private vs public grade schools (instead of college). I think this is a big financial decision for parents and probably has more relevance
I agree. And compare that to homeschooling with only one (or 1 1/2) income stream instead of two.
Median household income is around 70k in the US.
In your survey, only 3% of millionaires have income under 75k.
Hard to claim everybody can be a millionaire.
It's more than half the population that can't really...
dual income mate, look at the stats on how many were single vs other/married
@@bishikon 70k IS dual income dude.
Another great video.
I think I am working backwards on your videos but I am subscribed.
I am a widower.
I am 62 now and I am semi-retired.
My wife died on active duty in the US Navy in 2014 and is buried in Arlington National Cemetery.
I miss her deeply to this day and forever.
Her birthday is tomorrow 09JAN2023.
Your advice as I said before is phenomenal.
People would be remiss if they did not subscribe to your channel.
I am telling them about your channel.
Einstein said the 8th wonder of the world.
Who would challenge him.
The quickest way to become a millionaire is to simply copy the greatest stock picker of all time, Nasty Peloski!!
Curious if there’s a breakdown of public/private and home schooled for the millionaires you surveyed, maybe next year you can add that as an option. 11:58
I feel all this could have explained in 15 min video. They stretch it as its needed for making sure you spend time on channel
I'd recommend their short clips if the banter bothers you.
Info like this is so good!
Was this combined household income
Hey money guys! will you guys go over what a CBDC ( Central bank digital currency) is and how that would effect future savings. Because the government is at the beginnings of rolling this out mid 2023.
What is the financial order of operations? I’m a multimillionaire who was an RN. I went to school after I finished having my 4 children. My husband did not make a lot of money and I mostly went to school for free (low income). University was 4 miles from my house. I went to work, but didn’t actually start saving until age 48. I was very aggressive with my savings at that point, saving all my overtime money (35%). When I was 59 1/2, I purchased a 4 unit property, borrowing the money from my 403B. 6 months later I bought my second property ( a 12 unit property with 8 storage units). Our house waspaid off, so I used a HELOC on my house for the downpayment. Then a year later, I bought a duplex that was in such poor condition that I didn’t think anyone would give me a loan for. I paid cash for it and began to renovate with my overtime money. The 12 unit I just sold for 1.5 million (which they overpaid for by almost 300,000 because I wouldn’t sell unless I got what I asked). I then took the proceeds, arranged for a qualified intermediary to hold it and purchased two Delaware Statutory Trusts. I still have the 4 plex and the duplex, but I’m putting the duplex on the market soon. It is in a transitory neighborhood and I presume I should be able to get $180,000 with all the work that has been done on it. I only bought real estate because I didn’t think we had enough time to save for retirement. There was a lot of money, Blood, sweat, and prayers that went into my ventures. But I’m 66 now and retired and I happy with the results of my work and prayers and planning.
Oh, I also purchased 117 acres in a rural area that has gone up tremendously in value. We may sell in a couple of years. Not sure.
That's awesome. I'm happy to hear of your success.
College drop outs in my experience have a higher likelihood of going on to be successful business owners. Reason? A college degree in great percentages limits your upside due to a comfortable living as middle management.
I'm surprised that the survey did not include any questions about having children and how many children does that not impact your road map to millionaire status?
great insight in this episode ,appreciate ya'll
I would bet that another survey will reveal an equal amount of people who lost millionaire status through divorce. We don’t all choose the best spouses early in our lives.
You may be right, but what all the data tells me is that picking the right spouse may be one of the most important financial decisions you will ever make
Hold on, didn’t you guys delete this the first time y’all uploaded a few days ago? Was it because y’all accidentally kept the cut in where Bo counted y’all in on the live? 🤔😭
I think the math behind 80% of millionaires are first generation is misleading, in the 80s there were only 500k millionaires in the 90s around 3 million and today around 20 million. So when we look at those numbers it's obvious that the number of first generation would be disproportionate especially when factoring in the massive inflation experienced with any economy growing. So, as a base statistic sure that makes sense but I imagine that when you really boil it down someone from a wealthy household will be far more likely to lead a successful life and attain millionaire status because the things which lead to financial wealth are transmutable from parents to children. Just to put it in perspective with the 20m millionaires current stat 6.3% of Americans. 30% of children produced by millionaires will be millionaires this meaning that 30 out of a hundred children of millionaires will be millionaires where as only 6.3 out of a hundred children with parents who weren't millionaires will not become millionaires. It's truly just an odds game and you'll always be better off if the people at your starting line actually know how to run.
Yeah, I remember seeing those numbers and just thinking, “well these are misleading numbers when you take everything into consideration.” Even looking at the statistics for low income people moving to middle class shows that it is heavily against low income people.
Also, I think people who self-report that they didn’t receive inheritances tend to not recognize certain monetary gifts they received that weren’t cash or as a result of a family death.
Excuses excuses excuses
@@keemiel4005 you think that or you have evidence to support that?
@@franklintyler4652 I said “I think” that. It’s my perception. For instance, people who receive family assistance with weddings, home down payments or other gifts that have monetary value may not view those items as an inheritance but I would.
The statistician in me is frustrated by how the data is being presented in this particular episode - correlation does not imply causation and there is no actually measurement of what your millionaire clients are doing relative to what non-millionaires are doing. Where's your control group? There's a lot of assumptions/implications about what millionaires are doing differently than non-millionaires and no evidence to back it up.
I normally like your content, but this episode is super disappointing. It's clear you started with your end points and looked for data to support it not the other way around.
I agree that you would need to look into the information more for any "proof", but the advice they gave was still good.
They are both busy trying to sell so no explaining how is really works is not in their Fianacial best interest!!!
How many people go to private universities compared to public? It might be totally irrelevant
Great Show!!
Great video!
Down wit’ da FOO! 😎 🙃
If you had enough money and time to exercise you also have a lot of time to travel, drink, and eat. Over consume.
Where should the emergency reserve be kept? I have my 3-6 months of expenses saved but it's sitting in a regular savings account.
Same for me, it is in a regular savings account. With time, my emergency fund became a small portion of my portfolio and I just don't care anymore about placing it, but I appreciate being able to pull from it with no hasle
Vanguard money market paying about 2.25 %. Good place for short-term cash.
You should place it in an investment account. Treasury bills will get you about 4% these days
When you mention that the wealth is gone by the third generation you never seem to take into consideration that the inheritance is SPLIT among the children. If my wife and I leave $1 million to our three children, they only get $333,000 each. That's enough to rebuild to $1 mil. But the child has to be disciplined and intentional to do it. If they spend it, then it is gone.
And if they divorce that money gets split again
College is a joke. I'm married but don't do it. I've done college and marriage .... I live good, have a great wife, but I think its very rare
Love yalls content but wish you would have compared public school attendace for millionaires compared to population as a whole (like how you did for work related to major). Less than 10% of k-12 is private but 22% of millionaires went to private school. This may be disheartening for some but is statistically relevant.
It would be interesting to see if family funded schooling (primary, secondary, college) is included in the “under $10k inheritance” stat.
Similar question for down payment on first home.
Time stamps pls
You talk a lot about what share of the millionaires did something, but that doesn't really matter unless you compare it to general population. If 80% millionaires did something that isn't indication of something that helps you become a millionaire if 95% of everyone did so.
I do agree that is a shortcoming of a lot of these millionaire studies. As Nassim Taleb says: "You need to look in the graveyards, too." It is survivor bias. What percentage of people do these things but DON'T become millionaires?
Having said that, I do think the stats and surveys are super interesting and can reinforce good financial behavior.
I don't agree with the credit cards
When spruikers use the word 'secrets', R U N !!!!!
Well, it makes sense, because the millionaire who is divorced probably had over $2 million before....but as they say...the reason divorce is so expensive is because it's worth it....🤔
Also bad habits and irresponsible behaviour destroyed many millionaires..
Most of this is useless for a lot of people, you admit it yourself that a majority of those surveyed make 6 figures while the national median income is less than $70,000. I want you to survey those people and talk to them about retirement, then we'll find some relevant information.
I could be wrong here, but those numbers could be peoples’ incomes WHEN they attained millionaire status. Their journey could have started much sooner when they weren’t making as much money. I wish the money guy staff had specified that, because it makes such a huge difference in what those numbers mean.
@J-Dawg statistically, most people dont make 6 figures. Hence their point about relevance. Discussing how the top 20% manage to save a bit of money over a couple decades isn’t particularly interesting. There’s not a lot to learn there. “Just make more” is even less interesting so spare everyone that nonsense before you get started.
@@devenmurray3580its household income on the diagrams, these are dual income numbers 70x2=140
@@bishikon where did you get 70 x 2? Tell me you dont think median household income is 140k.. because I regret to inform you it is LESS THAN HALF of that...
@@devenmurray3580 I'm Aussie, I didnt think it was so dire in America so the numbers looked off to me - my mistake!
If I were to be a millionaire, I would share...absolutely nothing. There is no way I am going to share any of my "secrets" (and certainly not on the internet) because a secret shared is no longer a secret. I am a big fan of stealth wealth. And although I am not a millionaire, I am wealthy enough to keep it to myself and live a normal life without anyone knowing how much I have. Nobody coming to me with some "business proposal, nobody asking for a "break", nothing of the sort. It's safer to be quiet.
The secrets are just common sense.
anonymous survey, optimistic mindset allows everyone to rise with the tide
The majority of YOUR clients are following YOUR rules….
Well.. DUH?!
I’m shocked there were not more liberal arts majors on the list! 😂😂😂
Maybe they're all not in much college debt because college was actually affordable when they went. Like seriously how disconnected from reality can you possibly be.
44:19 "That's the only way this 80%, close to 80% number consistently shows up in the data." This statement is not true. Let me give you a simple example. On an island with 10 households on it. Initially, there are 2 millionaire households. One generation later, the other 8 households earn enough money to become millionaires. We have 10 millionaires now, with 80% (8 out of 10) of those being first generation. 0% of the original 2 millionaire households experienced any wealth destruction. The increasing absolute number of millionaires alone can cause this 80% first generation millionaire statistic, without any wealth destruction of the original rich families. This misrepresentation of data has been so widespread that it really annoys me to hear this again and again everywhere in the personal finance world.
The chart at 9:00, is that household or individual income?
"Current *household* income"
@@joejoe3011 thank you
Sam Hunt is a scam thread.
Step 1: Have $1,000,000
It's simple. If you can't control yourself with a credit card, that means you are bad with money.
You can't be good with money with a credit card though. You can only be neutral or bad.
@@amireallythatgrumpy6508 You can. But that is another topic.
@@jackjia8773 What you consider good would be what I consider neutral.
@@amireallythatgrumpy6508 Without me saying what I consider as good and neutral, you can just know what I consider. That's really cute.
The leading cause of divorce is marriage 😏😉😆
And leading cause of death is being born. People should think about that before having children. 😁
Troll
Lol
Although I agree with your points on student loan debts, most of your clients went to school 20+ years ago so the 6% over 50k is highly misleading
Very good point