Are millionaires debt free?
The majority of a millionaire's net worth usually includes money invested in retirement accounts or real estate (like a paid-for home). Not only that, but they also tend to stay far, far away from debt (73% of millionaires never carried a credit card balance in their entire lives).
They avoid debt
This probably won't come as a big surprise, but the bulk of millionaires are very reluctant to take on debt. In fact, 73% of millionaires surveyed in the US have never carried a credit card balance,1 while 56% of active credit card accounts in the United States currently have a balance.
Many wealthy individuals do use debt strategically to build wealth, often through investments like real estate or business ventures. This strategy, known as leveraging, involves using borrowed money to increase potential returns.
The average IQ of self-made deca-millionaires (over $10M net worth) is 118. The average IQ of self-made* billionaires is 133. The average IQ of self-made deca-billionaires (over $10B net worth) is 151. Of note, average incomes correlate well with IQ, however there is a much lower correlation between IQ and net wealth.
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.
Rich people use debt to multiply returns on their capital through low interest loans and expanding their control of assets. With a big enough credit line their capital and assets are just securing loans to be used in investing and business.
Your credit score on its own doesn't say much about your income. Because it's based on your borrowing behavior and history, as well as your ability to manage debt, you can have good credit on a low income or bad credit on a high income.
While having a net worth of about $2.2 million is seen as the benchmark for being rich in America, it's essential to remember that wealth is a subjective concept. Healthy financial habits and personal perspectives on money are crucial in defining and achieving wealth.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
Households with a net worth of $1 million or more may be classified as members of the upper class, depending on the definition of class used.
What is the IQ of Mark Zuckerberg?
Einstein IQ: 160+, Bill Gates IQ: 150+, Elon Musk IQ: 155, Zuckerberg IQ: 152, Sunny Doel's IQ: over 160.
Elon Musk's IQ is 160. This estimation is based on high correlation of SAT and IQ. The analysis to estimate his IQ score is grounded in scientific rigor and advanced statistical methods.
Real estate investing has played a role in helping to create 90% of the world's millionaires. Real estate is one of the most effective wealth building vehicles and is an important component of a well-diversified portfolio.
| Age Range | Top 10% | Top 1% |
|---|---|---|
| 20-24 | $64,855 | $129,709 |
| 25-29 | $142,680 | $303,736 |
| 30-34 | $188,079 | $468,035 |
| 35-39 | $230,234 | $1,048,484 |
Americans between 50-54 have an average net worth of $1.13 million; while those in the 55-to-50 age group have an average net worth of $1.44 million, according to USA Today. In comparison, for people in their 20s, the average net worth is $120,896 for those aged 20-24 and $120,185 for those aged 25-29.
The average age of a first time millionaires is 37, it has been found. In data released by Betway Insider, the average age of a first time billionaire is also revealed: and is a little higher at 51. So, if you're not quite there yet, what can you do to make your first million?
Some rich people use a mortgage to buy homes and some pay all cash, the same as everyone else. The choice just depends on the situation. Sometimes, there's more advantage to take on a mortgage to avoid tying up too much cash on a property and sometimes, it's a better deal with all cash.
Many millionaires keep a good chunk of their money in highly liquid assets. The most liquid asset is cash on hand. After which, cash equivalents offer the highest liquidity and act as very lucrative investments.
In fact, the average millionaire pays off their house in just 10.2 years. But even though you're dead set on ditching your mortgage ahead of schedule, you probably have one major question on your mind: How do I pay off my mortgage faster?
They pay off their balances in full each month
Rich people can maintain control over their finances by avoiding credit card debt, among other tactics. They can allocate their resources more effectively towards wealth-building endeavors — like earning rewards.
Do millionaires use credit cards?
While millionaires are less likely to have a cash back card than the average American, they're more likely to have every other major type of credit card, including travel rewards cards, balance transfer cards, gas and grocery cards, and sign-up bonus cards.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
- They Have a Calm, Confident and In-Control Vibe. ...
- They're Resilient. ...
- They Have an Elegant but Understated Sense of Style. ...
- They're Well Connected. ...
- They're Financially Literate.
The upper middle class is often defined as the top 15% to 20% of earners. According to the Social Security Administration's 2022 wage data, the average upper-middle-class income was roughly between $80,000 and $100,000.
Wealthy: To be considered well off, a person must be in the 90th percentile, possessing a household net worth of $1.9 million. This level of wealth affords trips, charity donations and college funds for children.
