The millionaire next door is a lot more common than you might think.
For decades, the term "millionaire" has been one of the most common ways to describe a wealthy individual. It doesn't mean nearly as much as it once did, thanks to inflation. But it's still widely used and is normally a sign that a person is doing pretty well with personal finance. And then there are billionaires, who unarguably have more money than any human being could ever need.
Just how many people have reached these major financial milestones? We have the answer, thanks to the latest USA Wealth Report from Henley & Partners.
How many millionaires and billionaires live in the United States?
There's a staggering amount of wealth and high-net-worth individuals in the United States. It's home to $65.4 trillion in private wealth, by far the largest wealth market in the world. For comparison's sake, second-place China has $21.7 trillion. Here's how many people the United States has in each major wealth classification:
- 5.3 million millionaires with a net worth of at least $1 million
- 9,630 centi-millionaires with a net worth of at least $100 million
- 770 billionaires with a net worth of at least $1 billion
The numbers reflect how rare each respective level of wealth is. Being a millionaire is still a major achievement, but it's not too uncommon. The U.S. Census Bureau reports that there are 258.3 million adults in the United States. Based on that, millionaires make up about 2% of the adult population.
Centi-millionaires and billionaires, on the other hand, only make up small fractions of a percent. So, the average person will run into about two millionaires for every 100 U.S. adults they meet, but they could go their entire life without meeting a centi-millionaire or billionaire.
As far as averages go, the average wealth of a person living in the United States is $198,000. Keep in mind that outliers with ultra-high net worths surely bring that average up quite a bit. Despite the amount of wealth in the United States, it doesn't have the wealthiest average citizen. It ranks fifth there, behind Monaco, Switzerland, Luxembourg, and Australia.
How to build wealth and become a millionaire
Now that you know the numbers on how many high-net-worth U.S. adults there are, let's look at how you can join their ranks.
Specifically, we'll go over how to become a millionaire, because that's an achievable goal. If you manage money well, you can build a $1 million net worth. It's becoming a centi-millionaire that's likely going to be unrealistic, and billionaire status is definitely out of reach for most people not named Bezos or Rihanna.
The path to becoming a millionaire is fairly straightforward. Here's what you need to do to get there:
- Find a stable source of income. It certainly helps to have a high income, as well, but this isn't required.
- Have manageable fixed costs (essential expenses). Ideally, these shouldn't take up more than 50% to 60% of your income.
- Be careful about how much you spend. You can spend money on yourself, but watch out for big, unnecessary expenses.
- Invest your money. Aim to invest at least 10% of your income per month, and 20% is even better. Start by investing in retirement accounts, such as 401(k)s or individual retirement accounts (IRAs), because these have tax benefits. Many employers also offer a 401(k) match up to a certain amount.
As far as what you should invest in, having stocks in your portfolio is what's most important. The stock market has an average return of about 10% per year, so it's a reliable and effective way to build wealth. An easy way to invest in stocks is with an index fund that tracks either the total stock market or the S&P 500.
When you're young, most of your investment portfolio should be in stocks. You could put 90% of your portfolio in stocks and 10% in bonds, which provide fixed returns. Once you get closer to retirement, you can shift more money to bonds to preserve your wealth.
It might seem simple, but the reality is that building wealth isn't complicated. The hard part is staying disciplined by investing every month and not overspending. If you do that, you'll make it to a net worth of $1 million and beyond.
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
As of 2023, there are a mere 735 billionaires in the U.S. The millionaires are more plentiful—almost 22 million.
How many millionaires and billionaires live in the United States? ›
The U.S. is now home to 37% of the world's millionaires, up from 35% in 2018. The divergence grows even more at the top of the wealth ladder. The U.S. has 9,850 centi-millionaires — those worth $100 million or more — compared with China's 2,352. The U.S. has about 788 billionaires to China's 305.
What city has the most millionaires and billionaires? ›
New York has more millionaires than any other city in the world, beating out California's Bay Area, London and other wealthy cities, according to a new report. Nearly 350,00, or one in every 24 residents of The Big Apple are millionaires, according to a new ranking from Henley and Partners.
What percent of Americans are worth 1 million? ›
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.
Which country has the most millionaires? ›
United States
The U.S. is home to the most millionaires of any country by a large margin. In fact, nearly 9% of U.S. adults are millionaires today. This makes sense, as the United States has the world's largest domestic economy.
Who is the no. 1 richest person in the world? ›
Bernard Arnault, chairman of LVMH, is the richest person and the richest man in the world with a net worth of $215 billion. After Arnault is Jeff Bezos, founder of Amazon. Other billionaires with some of the largest net worths include Tesla's Musk, Microsoft's Bill Gates, and Oracle's Larry Ellison.
Which US state has no billionaires? ›
As of May 2024, only three states are without a billionaire, the report found, including Alaska, Delaware, and West Virginia. Forbes explained last year that West Virginia Gov. Jim Justice once had billionaire status but lost it due to heavy debts in the early 2020s.
What city is full of billionaires? ›
The World of Statistics' Hurun Global Rich List 2024 recently published a list of the world's wealthiest cities with the highest number of billionaires as residents. The United States' New York City comes out on top in this regard.
Which state has the richest billionaires? ›
California — 186 billionaires. New York — 135 billionaires. Florida — 78 billionaires. Texas — 73 billionaires.
What are the top 4 cities in the US with millionaires? ›
- New York City. New York City skyline Charly Triballeau/AFP via Getty Images. ...
- The Bay Area. Brandon Sloter/Getty Images. ...
- Los Angeles. Los Angeles. ...
- Chicago. Antonio Perez/Chicago Tribune/Tribune News Service via Getty Images. ...
- Houston. ...
- Other top millionaire cities include Seattle, Miami, and Austin.
Typical Net Worth at Retirement
| Age Range | Median Net Worth | Average Net Worth |
|---|
| 55-64 | $212,500 | $1,175,900 |
| 65-74 | $266,400 | $1,217,700 |
| 75+ | $254,800 | $977,600 |
Oct 5, 2023
In the U.S. overall, the survey says it takes a net worth of $2.2 million to be considered wealthy, up from $1.9 million in 2021.
What salary is considered rich for a single person? ›
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.
What city has the most millionaires? ›
01: New York City
The Big Apple tops the list of American cities with the most high net worth individuals. About 349,500 millionaires and 60 billionaires reside in America's largest city. Its millionaire population grew 48% in 2023 compared with 2013.
What nationality is the most billionaire? ›
China has 814 billionaires, the most in the world, according to the Hurun Global Rich List 2024. Despite holding on to the top spot, China lost 155 billionaires year-over-year, while the U.S. gained 109. The gap between the two countries has now reduced to just 14 billionaires.
Where is most wealth stored? ›
High-net-worth individuals are opting to keep most of their assets in cash right now. Stocks are still a popular choice for wealthy investors. You don't have to be rich to come up with a plan for your own money.
How many billionaires live in the USA? ›
This is a list of U.S. states and federal district by the number of billionaires as of 2023; there are 756 billionaires living in the United States. They live in 42 of the 50 states.
How many millionaires are in the USA? ›
Do you know how many millionaires there are across the country? According to a recent study, almost 24.5 million millionaires live in the U.S. today. To put that into perspective, that's more people than the entire population of Florida!
Which US city has the most billionaires live? ›
New York City once again is home to the most billionaires in the world: It's the primary residence of an estimated 110 billionaires who are worth a collective $694 billion. The Big Apple has long dominated the ranks, coming in at No. 1 for all but one of the past 11 years.
