I was reading some statistics from research done by the Ramsey organization about American millionaires this morning. Presently there are approximately 22 million millionaires in the good ole US of A. Seemingly, the “largest study of millionaires conducted”. Ramsey states that upon surveying 10 thousand participants they found 8 out of 10 of these folks invested in their companies 401(k) plan. Meaning these people had a job at a large corporation and learned how to save. They go on to state that only 31% of these people averaged $100,000 dollars a year over the course of their careers. Meaning if they could have saved every dime they made it would still have taken 10 years, I’m hoping you see it takes time. On average, the study states, that it has taken them 28 years to get there. They state that most of their participants got there at the age of 49. A side note: most of these participants did not receive it as an inheritance or any inheritance they did receive was insignificant to their financial journey.
About this study, I’m questioning their demographic pool and how they found them. Let’s say the information we have to glean from is reported income or assets. (government type reports) Then my data sets would connect me with people from the Fortune 500 group, mostly (their report reads this way to me, ie: 401(k) plan). To break that down there are 300 US cities with over 100,000 people or an average of 33 people in each city. Operative word “city”, why city? Again 401(k) plan. I would venture to say there are no companies in my town that employ people and offer that kind investment opportunity. There are 364 people with at least 75 businesses, a lot higher percentage than the study. Not to make this a diatribe about this study, it does go to illustrate the point of my topic today though.
These people are not rich! They are wealthy. They learned how to “NOT” spend!!! (emphasis added) and also to save or invest. They live reserved lives of contentedness. To say it another way, they do not live lavish lives of cars, boats, jewelry and fine dining like in the movies. Perhaps you are like me, a business man, and your wealth comes from years of hard work and investing to where you own assets that have appreciated and don’t show up on some millionaire’s statistical information. I’d like to see a survey of these folks to know what it looks like but just like you, I’m not giving them any of that data if I can help it. Nun ya bizness.
Back to my point. Being rich is momentary and short sighted. It only lasts as long as the money and we all know the looser you are with it the faster it goes not to mention the government is wrecking it faster that we can get it! These people like me spent time to get time and it took a lot of time to get there. There is no speedy road to wealth and of a certainty there is no way get rich quick, unless you are a guy like Bankman-Fried and just like him it won’t last long. Interesting irony his name is Bankman.
“The American dream is still alive” Ramsey states, to which I whole heartedly agree! The dream of living a life full of opportunity to be wealthy is right in front of us all. To be free, pursue our dreams through hard work, to have our hard work bear fruit, to keep and use that fruit in a manner that suits us and to share it with those we care about! My encouragement for you today is learn to be wealthy, forget about being rich. Life is rich when you can enjoy each and every special thing about your day. Children growing, babies crying, customers happy to know that you enjoy coming to work to greet them, being needed by your loved ones and your community, a nice hot cup of tea or coffee, dry feet, one minute of silence……. Surely, discipline yourself to become wealthy but understand that Hollywood’s definition of rich is not the ticket to your movie!
Go and be good to someone else,
Greg