A recent survey reported by CNN found the number of millionaires (households with a net worth of over $1 million) in the United States hit an all-time high 8.9 million people last year.
How did these people do it?
More than half said their wealth is the result of long-term wealth accumulation.
Over 60 percent of their dollars ($1.4 million out of the average net worth of $2.2 million) are in investment assets.
Almost 70 percent of those millionaires own mutual funds.
The survey also found that the median age of this group is 58 years old. These people didn't have to work until age 90. They had a plan and just started investing early and often enough. After a while, compound interest made the money grow even faster.
Approximately 90 percent of the millionaires in America are first-generation millionaires; they didn't inherit their wealth, they built it. It is very possible to become rich. Get on a written plan, live on less than you make and invest, invest, invest.
The typical American family with a $40,000 annual salary has an $850 house payment, two car payments totaling $530, a student loan payment of $165, $185 in credit card payments and $120 for miscellaneous payments. All those payments total $1,850.
That money, invested at 12 percent, would grow to $1 million in 15 years. After 20 years, it becomes $2 million. Cool!
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