It’s Not Glamorous, but This Is How Most Americans Actually Become Millionaires
It’s Not Glamorous, but This Is How Most Americans Actually Become Millionaires
John Csiszar Sat, August 9, 2025 GOBankingRates
You may be surprised to find out that about 18% of Americans are millionaires, translating to roughly 25 million individuals, according to a report by Wealth Management USA. And while there are plenty of ways to accumulate a seven-digit net worth, some avenues are more common than others.
Many millionaires start their own business or invest in real estate to earn their riches, while others imply inherit the money. But the number one way that Americans become millionaires is actually within reach of average workers, provided they start early and stick to their plan.
Here’s the “boring” path to riches that doesn’t involve starting a business, investing in real estate or inheriting the money.
Consistent Investing
Want the “easy” way to a million dollars? Continually invest on a regular basis.
According to a report from Morningstar, investors who have $1 million or more in their Fidelity 401(k) accounts consistently invest, typically every two weeks or every month. They don’t trade in and out of aggressive investments, like leveraged ETFs, but instead simply sock away their money on a regular basis into their “boring” investments.
What’s the Secret?
There are a number of reasons why consistent investing is the “easy” path to $1 million. First, regularly adding money to your investments regardless of the market environment ensures that you’ll get an average price. You’ll be buying more stock when prices are low and less when prices are high. You won’t be putting all your money in either at the absolute bottom or at the peak — but since the long-term trend of the market is up, getting that “average” price provides a significant return.
Second, by consistently investing in “boring” options like mutual funds, 401(k) funds or high-quality stocks, you won’t be taking on excess risk. With automated contributions coming out of your paycheck or bank account, you won’t get tempted to chase the latest investment fad, a mistake that costs many novice investors their entire bankroll.
As preservation of capital is half the battle when it comes to building wealth, automatically contributing to relatively “boring” investments can help protect your bankroll over the long run.
The third reason why consistent investing works is a simple one. If you continually add money to your account, you’ll have more money in it.
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