Nearly half never received any college tuition from their parents or other relatives.91% never received, as a gift, as much as $1 of the ownership of a family business.Fewer than 25% ever received “an act of kindness” of $10k or more from their parents, grandparents, or other relatives.More than half never received as much as a $1 in inheritance.Fewer than 20% inherited 10% or more of their wealth.Only 19% receive any income or wealth of any kind from a trust fund or an estate.They do not believe that one must be born wealthy.They do not spend time worrying about whether or not their parents were wealthy.Most people who become millionaires have confidence in their own abilities.About 95% of millionaires in America have a net worth of between $1 and $10 million (1996 stat).Lives next door to people with a fraction of his wealth.They could maintain their current lifestyle for years and years without earning even one month’s pay. Millionaires are financially independent.Typical millionaire often had ~ 20% of their wealth invested in publicly traded stocks.Most millionaires do not have all of their wealth tied up in their stock portfolios or in their homes.On average, 21% of our household’s wealth is in our private businesses.We hold nearly 20% of our household’s wealth in transaction securities such as publicly traded stocks and mutual funds.But we make our own investment decisions. 79% of us have at least 1 account with a brokerage company. We are investing 20% of our household realized income each year.About ⅔rds of us work between 45-55 hours per week.We have accumulated enough wealth to live w/o working for 10 or more years. Most of our partners are planners and meticulous budgeters.Only a minority ever lease our motor vehicles. Only a minority of us drive the current-model-year automobile.About 80% of us are first-generation affluent.About ½ of us have occupied the same home for 20 years. We live in homes currently valued at an average of $528,000. We have an average household net worth of $6.1 million (in 2020 dollars).Our household’s total annual median realized income (income you’ve actually received and earned) is $216,150 (in 2020 dollars).Most of the others are self-employed professionals, such as doctors and accountants. ¾ of us who are self-employed consider ourselves to be entrepreneurs.Self-Employed people make up less than 20% of the workers in America but account for ⅔rds of millionaires.⅔rds of the above are working are self-employed.About 70% of us earn 80% or more of our household’s income.They are proficient in targeting market opportunities.Their adult children are economically self-sufficient.Their parents did not provide economic outpatient care.They believe that financial independence is more important than displaying high social status.
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Without Social Security benefits, almost ½ of Americans over 65 would live in poverty.How long could the average American household survive economically without a monthly check from an employer? Perhaps a month or 2 in most cases More than often than not the household has 0 financial assets, such as stocks and bonds.The median household in America has a net worth of less than $15K, excluding home equity.Nearly ½ of America’s wealth is owned by 3.5% of our households (1996 Stat - I’m pretty sure it’s the same or even worst come 2021 ).To be well positioned in the PAW category, you should be worth 2x the amount of wealth expected.UAW, under accumulator of wealth - ½ of the wealth expected.PAW, prodigious accumulator of wealth - worth 2x the amount of wealth.Divide by 10, this less any inherited wealth, is what your net worth should be. Multiply your age times realized pretax annual household income from all sources except inheritances.
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Net worth is the current value of one’s assets less liabilities (exclude the principle in trust accounts).Many people who display a high-consumption lifestyle have little or no investments, appreciable assets, income-producing assets, common stocks, bonds, private businesses, oil/gas rights or timber land.Wealth is often the result of a lifestyle of hard work, perseverance, planning, and most of all, self-discipline. If you make a good income each year and spend it all, you are not getting wealthier. Many people who live in expensive homes and drive luxury cars do not actually have their wealth and many millionaires don’t even live in upscale neighborhoods.Most millionaires were keenly interested in being financially independent.Wealth is what you accumulate, not what you spend.For this summary, I'm looking at The Millionaire Next Door by Thomas J.