net worth of over 1 million?

18 Replies

 Are you considered a Millionaire if you have a net worth of over 1 million? say if you make maybe 100,000 a year but if you have a sizable Real Estate Portfolio that assessed over Million dollars? 

Millionaire typically refers to your net worth, not your income.

I would say always not typically. Plenty of people earn a million dollars a year and aren't worth a brass razoo.

And before you ask: BRASS RAZOO

Technically if your net worth is over 1M you could be considered a millionaire but by todays standards 1M is not really very much to be putting a label on..

Real simple. Net worth = assets - liabilities. Income is irrelvant.

Correct. You need to make sure you subtract any liabilities (debt).

1 mill is definitely a feat.

I only know 1 millionaire personally 

The first million is the most difficult. After that it looks easy because the swing on the investment returns is huge. You can win big or lose big due to the swings if you are invested in the stock market.

Thank you Everyone that's what i was thinking. I wasn't sure. If you just make income that is considered 'dead money' or fake money as you lose 2-3% of value due to inflation

@Tajinder Kandola

Millionaire status is definitely not income related.  If you're interested there is a fantastic book called "The Millionaire Next Door" which you should check out if you'd like to learn more about millionaires and high earners.  The two are definitely not correlated.  

Have to agree with @Abdul Azeez as I'm finding this first million is the hardest to get to - from there, compound interest carries you away.  It's the most powerful tool out there and why the "rich keep getting richer". 

@Greg S. depends on where you are coming from. I was pretty excited when my net worth reached 1m :):):) baby steps turn into miles

Originally posted by @James Triano :

@Tajinder Kandola

Millionaire status is definitely not income related.  If you're interested there is a fantastic book called "The Millionaire Next Door" which you should check out if you'd like to learn more about millionaires and high earners.  The two are definitely not correlated.  

Have to agree with @Abdul Azeez as I'm finding this first million is the hardest to get to - from there, compound interest carries you away.  It's the most powerful tool out there and why the "rich keep getting richer". 

 A good book written by local Stanford professors and based on solid research/sample size.

@Tajinder Kandola

From a purely definition perspective a net worth over $1MM is assets minus liabilities. So if your portfolio is worth net $1MM congrats.  For regulatory purposes (i.e. accredited investor) there are some exclusions for instance your primary residence doesn't count. 

Income doesn't matter for net worth. 

Originally posted by @Tajinder Kandola :

Thank you Everyone that's what i was thinking. I wasn't sure. If you just make income that is considered 'dead money' or fake money as you lose 2-3% of value due to inflation

Certainly you have to DO something with your after-expenses income other than putting it under your mattress. Yep. The buying power of every $100 will on average lose $2-3 every year.

And as we now know, we won't get far by just buying and hoarding brass razoos, either.

Now, the expression is: "a billion here, a billion there (then soon, you're talking serious money)"! 

Right on @Brent Coombs .  Earlier on in my real estate investing I found it hard to make offers on homes worth over half a million dollars. So I started going to open homes of multi million dollar homes just to get used to the bigger numbers.  After a few weeks and lots of open homes my fear of higher values completely disappeared. In fact not long afterwards I bought a 3 million dollar flip!

Being a millionaire, is not what it use to be.

However, yes, the definition of a millionaire is someone who has a net worth over 1 million.

With that said, it's still a feat. If you look at the statistics. https://dqydj.com/net-worth-in-the-united-states-z...

About 9 percent of americans have a net worth of at least 1 million dollars.

When you get up to 1.8 million in net worth, only 5 percent of americans have at least that.

So yes, it's not what it use to be, but it's still a huge accomplishment. Especially if you live in a low cost state. For example, having a net worth of 1 million in Indiana, is more impressive, and provides you with a better life, than say the same 1 million in California.

I am a millionaire in 3 different currencies. Cannot wait to be one in USD

Agreed that millionaire is not what it used to be, the term was only first used about 100 years ago. The new milestone some folks talk about is penta millionaire, or 5 mill net worth.

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