Having rich parents helps.
You might wanna go read the book. The stats show that most millionaires didn't get that way via inheritance.
The vast majority of today’s American millionaires inherited no money from family. Read “The Millionaire Next Door”.
There are hundreds of thousands-maybe even millions—of high income low net worth individuals/couples in this country. Their problem is they blow their high income on things like McMansions, BMW’s, designer clothing and accessories, and they never really increase their net worth.
Then there are the “millionaires next door”, usually middle class income, but they live comfortably below their means.
Mr RooRoo and I graduated from college with essentially nothing but the clothes on our back. We have lived below our means, but we are not frugal freaks nor cheapskates. We’ve lived a nice comfortable lifestyle in a nice 2000 sq ft home in a nice upper middle class neighborhood. We have ALWAYS saved money and invested wisely. We’re in our early 60’s, our house is paid off and our net worth is closing in on $2 million (does not include the equity in our house).
It’s possible to be a self-made millionaire. Self-discipline and patience over time is the key.
Sometimes it does, sometimes it doesn't. I can think of a couple of upper-class to borderline rich fellows who are at best lower middle class. Why? They were waiting to inherit, and never learned how to handle money, or to become more than moderately skilled in any area. Then, either the family fortunes they were banking on, or the family relationships (e.g., later marriages, estrangement) changed.
Ardent Democrats, both.
Sure it can help..but no one needs rich parents to be “rich”.
My family lived paycheck to paycheck despite being “middle class” as far as income was concerned. My parents had no financial smarts and just complained about the lucky “rich” people all the while spending what little money that had on cigarettes, alcohol, the newest TVs with cable and new cars every couple of years. My dad is somewhat comfortable but can’t do anything other than keep the lights on keep himself fed, pay medical bills and cable TV thanks to a small pension and SS. I support my mother outright because she can’t live on SS/Medicare...surprise. And she complains about how you can’t live on SS! I support her because it’s my duty...though it pisses me off. As a kid, I assumed the rich were lucky too.
Fortunately for me, a manager at McDonald’s back in the 70’s told me that, to be comfortable or even “rich” when I got older, I needed to learn to live on 80% of my take home pay, forever, and save the other 20%. He also told me to start reading about investing and how to accumulate wealth so that I wouldn’t need to work past 50 if I didn’t want to.
So I did. When 401K’s were available to me, I contributed whatever my employers would match and saved the rest in a savings account. When I was 18, opened an investment account and began investing into a diversified portfolio. When ROTH IRAs hit the scene I started investing all money not in an
employer matched ROTH 401k into ROTH IRAs, now with several firms.
I don’t have a college degree but I worked hard, educated myself focusing on personal finance and business with an emphasis on supply chain. In my 20’s I had roommates, drove crappy cars, worked two jobs for a few years saving ALL of that paycheck, didn’t blow money on partying (too often..), lived in modest homes or apartments and was basically very frugal. I ate cheap, didn’t buy expensive clothes, etc. When I could afford a home, I bought one. Then, shifting some of that 20% (sometimes 30%+) as an investment strategy, another, and then another.
When got married we continued the same strategy. When we had kids, my wife stopped working to be a stay at home mom.
Over the years my standard of living gradually increased. I have a bigger, nicer home now, on a lake, two new trucks, a small travel trailer and two boys going to college in a couple of years. I could pay for their education, but I’m not. They already have their financial plans in place and know what it’s going to take to be “rich”.
I’m 53 and don’t need to work. I do because I actually enjoy what I do (most of the time) but my plan to stop working at 55. I’ll sell my two rentals and my current home, which I own outright, and move farther out into a smaller custom built home and travel, hunt, fish...pretty much whatever I want to do and leave my boys something when I die.
Rich parents help, but aren’t the key to building wealth. Understanding personal finance, taking responsibility and living frugally is the key.
Like Bill Gates, Scott McNealy (microsoft and sun microsystems). There are a bunch of others but those to spring to mind.
Less than 20% of millionaires inherited anything. Less than 3% inherit most or all of their money.