A large salary helps, but you can become a millionaire without one.
When you think of the typical millionaire, the first thing that comes to mind may be someone at the top of their field with a huge salary. According to research by Dave Ramsey's company, Ramsey Solutions, that couldn't be further from the truth.
This year, Ramsey Solutions released The National Study of Millionaires. It's based on a survey of over 10,000 millionaires, who were asked about their careers, financial habits, and much more. The most common millionaire careers probably aren't what you'd expect, and they show that making a lot of money isn't the only way to build wealth.
The top five careers of millionaires
Here are the top five careers of millionaires, according to the Ramsey Solutions' study:
- Engineer
- Accountant (CPA)
- Teacher
- Management
- Attorney
As you can see, not every career is one that's typically associated with a high salary. While some millionaires make significantly more than average, that's not the norm. Only 31% of those surveyed averaged $100,000 per year over their entire careers. One-third never made six figures in any year of their careers.
To be clear, income certainly matters. When you earn more, you can save more money and invest more. But you don't need to be in the top 10% or 25% of earners to become a millionaire. You could achieve it on an average salary or less with the right financial habits.
Millionaire financial habits
The financial habit that nearly all millionaires share is that they're careful about their spending. Of the survey respondents, 94% said they live on less than what they make. Even after achieving financial success, they still largely avoid overspending. In addition, nearly three-quarters of those millionaires had never carried credit card debt.
To get on the path toward being a millionaire, it's crucial to save money every month. If possible, saving at least 20% of your income is recommended. Make sure you also avoid high-interest debt, like credit card debt, or pay it off if you're currently in debt.
Next is deciding what to do with that money you're saving. Most millionaires use one simple, effective method to grow their money -- investing. Here's what Ramsey Solutions found:
- Eight out of 10 millionaires invested in their company's 401(k) plan.
- Three out of four also invested outside of company plans (options include IRAs and individual accounts with stock brokers).
- 75% of millionaires said that regular, consistent investing over a long period of time was the reason for their success.
- No millionaire in the study said that single-stock investing was a big factor in their success.
Instead of single-stock investing, most investors are better off putting their money in index funds that invest in a large assortment of securities. For example, there are plenty of exchange-traded funds (ETFs) that invest in the S&P 500. That index tracks the 500 largest companies listed on U.S. stock exchanges. Funds like this are a simple way to invest and offer better returns than most investors get by picking stocks themselves.
Consistency pays off
The millionaires surveyed by Ramsey Solutions are predominantly people with reasonable incomes who saved and invested. There are, of course, outliers who made a large amount of money or inherited wealth. But the research shows that becoming a millionaire is an achievable goal, and that's good news for everybody.
Making more money can certainly help you build wealth more quickly, so it's smart to look for ways to raise your income. However, the key is to consistently invest your money. If you invest a portion of your income every month for decades, you'll likely be on track for a million dollars or more.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
FAQs
Engineer 2. Accountant (CPA) 3. Teacher 4. Management 5.
What are the top three careers reported among millionaires Dave Ramsey? ›
Engineer 2. Accountant (CPA) 3. Teacher 4. Management 5.
What major makes the most millionaires? ›
Top 7 degrees that make the most millionaires
- Engineering.
- Economics/Finance.
- Politics.
- Mathematics.
- Computer Science.
- Law.
- MBA.
A millionaire is somebody with a net worth of at least $1 million. It's a simple math formula based on your net worth. When what you own (your assets) minus what you owe (your liabilities) equals more than a million dollars, you're a millionaire. That's it!
What is the most common job for billionaires? ›
Finance and investments remains the surest way to get ultra-rich. It's the industry with the highest number of billionaires, 372, including hedge fund and private equity tycoons, bankers, venture capitalists and fintech founders.
How much is Dave Ramsey worth in 2024? ›
He has accumulated a net worth of $200 million by 2024, as reported by New Trader U. Renowned for his straightforward approach to debt management and wealth building, Ramsey has significantly impacted the way individuals and families handle their finances through his books, radio show, and educational programs.
What is the only place you should keep your emergency fund money? ›
Bank or credit union account — If you have an account with a bank or credit union—generally considered one of the safest places to put your money—it might make sense to have a dedicated account where you can keep and maintain these funds.
What are the 4 Dave Ramsey funds? ›
And to go one step further, we recommend dividing your mutual fund investments equally between four types of funds: growth and income, growth, aggressive growth, and international.
What was Dave Ramsey's job before he was rich? ›
As Ramsey tells it, his dad's response was, “You need a job. You don't need money.” Taking the advice to heart, Ramsey started his first business, Dave's Lawns, mowing his neighbors' lawns. Throughout high school and into college, Ramsey continued to work hard and earn his own money.
What creates 90% of millionaires? ›
Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.
Fittingly, the most common subject matter for higher education was economics and finance, suggesting that when you know money, you know how to make money! Billionaires such as Warren Buffett, Alice Walton, and Elon Musk have degrees in economics. The college degrees studied by billionaires in the United States.
What college has the most millionaires? ›
Harvard also ranks first in the number of ultra-high net worth alumni with assets greater than $30 million. Harvard's total number of ultra-high net worth alumni is more than twice that of the next highest ranking institution, Stanford University.
What does Dave Ramsey say to invest your money in? ›
There are many types of investments to choose from, but good growth stock mutual funds are the best way to invest for long-term, consistent growth. Here's why. A mutual fund is an investment that pools money from a group of people to buy stocks in different companies.
What percentage of Americans have a net worth of over $1,000,000? ›
Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
How many people have $1,000,000 in savings? ›
In fact, statistically, around 10% of retirees have $1 million or more in savings.
Which field is best for millionaire? ›
10 high-paying jobs
- Computer network architect.
- Air traffic controller.
- Petroleum engineer.
- Lawyer.
- Physicist.
- Computer and information systems manager.
- Dentist.
- Surgeon.
What are the highest-paying jobs in America? Unsurprisingly, physicians, surgeons and psychiatrists rank near the top of the list. But chief executives, airline pilots and athletes also rank high. Many of the highest-paying occupations in America are also among the fastest-growing jobs.
What profession makes you the richest? ›
1. Chief Executive Officer (CEO) Topping the list, being a CEO gets you the highest paying job in the world, no matter where you work. A CEO is the highest-ranked position in any organisation's structure.
What jobs are in the 1%? ›
Some examples include:
- CEO and top executives in large corporations.
- Investment bankers and hedge fund managers.
- Lawyers and partners in large law firms.
- Medical doctors and specialists.
- Tech entrepreneurs and venture capitalists.
- Professional athletes and entertainers.
- Real estate.
