You may be surprised to find out that The National Study of Millionaires, conducted by Ramsey Solutions, said that 8 out of 10 millionaires attained their wealth through investing in their company’s 401(k) plan.
Not only does this show that you don’t have to be born into money to have it, but it also means that this is an attainable goal for anyone with a 401(k). So, how exactly did these millionaires reach their status?
Slow and Steady
Most millionaires mentioned in the study didn’t invest in single-stocks, inherit their money, or invent something that became successful overnight. Instead, they consistently saved and invested their money over a long period of time. On average, it took about 28 years for individuals to hit the millionaire milestone, usually around the age of 49.
This slow and steady approach to saving and investing is a method that shouldn’t be overlooked and should be advocated more often. Investing in high-risk stocks or hoping to invent the next big thing isn’t a guaranteed path to success, and reaching your goals this way could end up taking longer than you anticipated. When it comes to saving and investing, a more consistent approach, even if it’s slower, can be ideal and drive better results.
79% of the millionaires surveyed didn’t inherit their money, and of those who did, only 3% received $1 million or more. While it would be nice to inherit a large fortune, as we can see, this isn’t an option for the majority of people, in which case hard work comes into play.
You might be wondering what these millionaires do for a living if they’re making all their money from working. Well, the participants in the survey said that their wealth came from hard work, not from having high-level positions or particularly lucrative careers.
“The fact that the average millionaire didn’t go to an elite school is great news for many Americans who can’t afford an expensive education. The state university or community college can provide a solid foundation for the future. You don’t need a prestigious diploma to win with money.”Chris Hogan
One thing the majority of the millionaires have in common is a degree, but not necessarily from an Ivy League school. While 62% graduated from a public university or state school, only 8% graduated from a prestigious university. This goes to show that it isn’t about where you go to school, but rather that you went.
Feeling inspired? Achieving wealth is all about how you go about it, not chance. Everybody has the opportunity to become a millionaire, but it requires hard work and patience. See how you can invest in your company’s 401(k) and begin your path to financial success.
Photo Credit: Austin Distel from Unsplash.