The Million-Dollar Question
The Million-Dollar Question
By Amy Legate-Wolfe Jan. 09, 2023
Dave Ramsey says 79% of US millionaires didn't receive inheritance from their family — so how did they make the big bucks? Riches don’t so much lie in getting a big gift but rather applying one’s career gifts.
Want to know what it takes to be a millionaire? Well, Ramsey Solutions went straight to the source and surveyed 10,000 of them. And some of the findings were surprising. Like: eight out of 10 invested in their company’s 401(k) plan.
But wait. Aren’t millionaires supposed to live off Mumsy’s trust fund and coddle the family cash pile in their Martha’s Vineyard seaside homes? Not exactly — in fact, not even close. Dave Ramsey, personal finance expert and founder of Ramsey Solutions, says this myth of primarily inherited riches is “flat wrong.”
When Ramsey’s National Study of Millionaires asked where the riches came from, they found that a whopping 79% didn’t receive any inheritance from parents or other family members. Not one cent. Unpaid bills perhaps (though the study didn’t ask). But coffers of jewels and blue chip stocks? Nope.
So how did they achieve millionaire status, and what can you do to replicate their success?
Choose the Right Career
The Ramsey study found that five careers produced the most millionaires: engineers, accountants, management, attorneys and teachers.
While these careers strongly correlate millionaire status to a higher education, that didn’t require attending a swank school. In fact, only 8% of those in the study attended “prestigious private schools,” with 62% attending state schools.
And one crucial detail to note: Millionaire status doesn’t equal sky-high salary.
“Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”
On top of that, the millionaires in the Ramsey survey didn’t necessarily hold senior leadership roles: Only 15% belonged to that category. By contrast, more than nine in 10 (93%) said they got wealthy because they “worked hard.”
Where Hard Work Meets Smart Finance
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