14 Myths About Becoming A Millionaire (Including It’s Not Too Late Even After Retirement)

Many retirement planning articles suggest that you “need” a million dollars to retire safely. We know that is not true. There are as many different ways to retire with confidence as there are people. (Use the Boldin Retirement Planner to find YOUR path.)

However, reaching a million dollars is a huge and often desirable milestone. And, depending on your goals, retirement can require significant savings.

Here are 14 myths and a few tips about becoming a millionaire.

The Myth of the Millionaire: You Need to Be Born into Money

There is no doubt that it is easier to make money if you have, come from, or inherit money.

However, it is not necessary. It’s not uncommon at all. According to Fidelity’s Millionaire Outlook survey, the majority – 82% – of self-made millionaires: did not inherit; they build their own wealth.

TIP: What millionaires got from their parents were values. Thomas Corley, author of Wealthy Habits: The Daily Success Habits of Wealthy Peoplesaid “More than 95% [of millionaires] they should be taught to be accountable for their actions, respect the law and other people’s property, work hard to do what they want, improve themselves every day.”

• Helping your children learn about how to build wealth and sharing your values ​​is also a powerful legacy.

Millionaire Myth: If You Have a High Income, You’re Set for Life

You may have read the seemingly sad sob stories of families making $350,000 a year who say it’s “getting by.” Maybe he rolled his eyes and continued. Perhaps you relate to their proverb.

The more money you make, the easier it is to spend, and if you live in certain parts of the country, pay for private school, and have expensive hobbies, a really high salary can quickly be spent. .

Most people find it shockingly easy to spend what they earn – no matter how much it is.

Ordinary millionaires earn a good salary. The median household income for billionaire families is $200,000. However, the trick to becoming a millionaire is not in how much you earn. It’s all about how much you can save.

TIP: Fidelity research found that, on average, 31% of millionaires’ salaries go into savings. However, the sooner you cash out, the easier it will be to become a millionaire thanks to the magic of compounding returns.

For example, a 20-year-old who saves $200 a month until retirement could have $1 million at 65 (given historical returns). While a 50-year-old contributes $1,500 a month he can contribute only half at 65.

• But, no matter how old you are, saving money IS the WAY to becoming a millionaire.

The Millionaire Myth: It’s All Luck

Indeed, being lucky can be a factor in the path to wealth. After all, success requires taking some risks. As the saying goes, “fortune favors the brave.”

However, the risks taken by millionaires are often well calculated. Also, being a millionaire is not about how you make your money. It’s about putting a large portion of your income into savings. There is nothing lucky about saving and investing (in sensible, low-cost investments) – that’s just smart.

TIP: Here are 23 smart and easy ways to improve your savings significantly.

Millionaire Myth: You Should Make All Your Money Before Retiring

Most of us are really worried about running out of money during retirement and ask: “Will my savings last as long as I live?” However, maybe we are all asking the wrong question. Retirement doesn’t have to be a time of declining wealth.

You can definitely improve your financial situation during your golden years.

TIP: Check out these tips on how to become a millionaire AFTER you retire.

Millionaire Myth: You Must Have a Good College Degree

Think of a billionaire and you might think of a Harvard-educated lawyer or a Stanford MBA. Although a higher education increases your chances of a higher salary, it does not improve your chances of becoming a millionaire.

According to an ancient book, The Millionaire Next Door by Thomas Stanley, only 8 percent of millionaires have a master’s degree, while 8 percent have a law degree and 6 percent went to medical school.

Millionaire Myth: They Work for Big Banks, Law Firms, and Technology Companies

Yes, there are plenty of millionaires who make their money working for big companies.

However, according to Stanley, 66 percent of millionaires own their own businesses. Entrepreneurship seems to be a sure way to become a millionaire. Also, multimillionaires have multiple streams of income.

TIP: A study by Corley found that millionaires are scrappy hustlers. They tend to have multiple streams of income and 65% have at least three different streams. Learn more about income or starting a business after 50.

TIP: The real estate side hustle and investment is popular among millionaires. Check out 8 ways to invest in real estate.

The Millionaire Myth: Success Comes Easy and Fast

Guess the age of the multimillionaire? You might think that they are all in the state of new technology like Mark Zuckerburg who started Facebook while still in college.

However, the average age of US millionaires is 62 and about 38 percent of millionaires are over 65.

Also, mid-life success is especially true for entrepreneurs. According to the Global Entrepreneurship Monitor (GEM), the highest rate of entrepreneurship worldwide has shifted to the 55–64 age group.

In addition, The Age and High Growth Entrepreneurship study, conducted by MIT in collaboration with the US Census Bureau, analyzed 2.7 million people who started companies between 2007 and 2014 and found that A 50-year-old is twice as likely to achieve great success – defined as a company that performs 0.1 percent higher – than a 30-year-old.

TIP: Read more about entrepreneurship after 50 years.

The Millionaire Myth: They Have Nothing to Worry About

The number one concern of most millionaires is one you can probably identify with: Health. Being healthy and being able to afford health care is their number one concern.

Another concern?

• How to spend their time
• How to leave a meaningful legacy (not money, but impact)
• Their future financial security (see below)

TIP: Find out how much health care will cost in retirement. Use the Boldin Retirement Planner to get personalized estimates for health care before age 65, Medicare, and long-term care.

TIP: Have a plan for what you want to do when you retire. Here are a few resources:

The Legend of the Millionaire: They Have Seen the Future of All

A Fidelity study found that millionaires feel uneasy about their financial future. Across the categories of retirement savings, debt management, real estate value, income level, and investment returns, 68 percent of millionaires felt happy with their current situation, but only 17 percent were confident about their future finances.

TIP: Avoid worst-case scenarios using the Boldin Retirement Planner and stress-test your retirement plans so you can be confident you’ll have the money you need when you need it.

The Millionaire Myth: They All Work With Financial Advisors

Only one-third of millionaires in the Fidelity survey work with a financial advisor. Working with an advisor doesn’t mean less stress for the wealthy. What makes the difference? Financial literacy.

Millionaires who feel less stressed are those who consider themselves knowledgeable about investing and managing their own money.

Tip: Take control of your financial future. Use a comprehensive retirement planner to gain insight into your finances. Even if you use an advisor, tools like the Boldin Retirement Planner can help you evaluate recommendations from advisors and find opportunities on your own.

Thinking of using a consultant? Join a CERTIFIED FINANCIAL PLANNER™ expert from Boldin Advisors to identify and achieve your goals. Book a free discovery session.

The Myth of the Millionaire: All the Financial Whizzes

According to Spectrum Group, 58% of millionaires agree that there is a lot to learn about investing.

However, they DO save and invest.

TIP: Stock picking and day trading is not a tried and true way to become a millionaire. You can take the easy way out and invest in index funds with a long-term buy-and-hold strategy.

TIP: Corley found that “Self-made millionaires make a habit of saving.” You should too.

The Millionaire Myth: They All Live in New York City

There are millionaires all over the country and New York state is not even in the top five states for millionaires. The states with the highest percentage of millionaires are New Jersey, Maryland, Connecticut, Massachusetts, and Hawaii, according to Phoenix Marketing International.

TIP: Run your own race to riches. It doesn’t matter where you are or what you are doing.

Millionaire Myth: They All Drive Nice Cars

What is the car of choice for millionaires? It’s not a Tesla. Or a Mercedes. It’s not even a Lexus. Guess what? Millions drive more Fords than any other car.

TIP: Think carefully before splurging on luxury goods. It’s okay to splurge, but try first to splurge on savings. If that’s covered, go ahead.

Also, consider spending money for pleasure, not status. Check out 11 ways to spend for fun.

The Myth of Millionaires: They Live a Life of Leisure

Millionaires don’t usually lounge around the pool or hit the links. Hard work counts and millionaires tend to love their work. In fact, although millionaires are usually older, 80% of them are still working.

TIP: Can you cut costs while delaying retirement for a year and actually pay off your savings?

Are you on your way to $1 million? Will it be enough?

Use the Boldin Retirement Planner to find out the total value of your money now, how much your assets will be worth in your lifetime and whether or not you are on track for a secure future.

It’s not scary and you have many options to improve your chances of wealth and security.

As shown above, work, many ways that don’t make money, constant saving, and smart spending are the keys to becoming (and staying) a millionaire. Use the Planner to see how any or all of these strategies will change your financial fortunes.