Now that we’ve had 400 millionaire interviews I thought it was a good time to summarize what we’ve discovered so far.
For those of you reading for awhile, I’ve done this after every major milestone:
I’ll go a bit deeper in this update and will do it in two parts.
In this post I’ll focus on a basic review of the numbers and demographics behind the interviews. Looking at these we will be able to draw some general conclusions about the group as a whole.
In a second part (published later) we will dig into the questions and list the top learnings/my general conclusions from 400 millionaires.
I find this stuff to be very interesting and hope you do as well.
Just for the Record
Let me begin with a few caveats/clarifications:
- The data I’ve collected is not scientific information. It was never meant to be. It was simply a series to learn from the wealthy how they became wealthy. The millionaires I’ve interviewed is not a random sample so we can’t extrapolate our findings and say they represent all millionaires.
- That said, having read The Millionaire Next Door, The Next Millionaire Next Door, and Everyday Millionaires, I can say that the findings from our 400 interviews are very, very similar to what large-scale, professional surveys have seen.
- The information I’ve gathered is directionally correct but not precise. People answer the questions in different ways. Plus sometimes there’s conflicting information within an interview (for instance, what interviewees give as their savings rates rarely matches the calculations when reviewing their spending and income.) Given this, I had to read between the lines many times and make some judgements about what’s actually going on. I’m fairly good at this and think I’ve come close to getting it right, through there is surely a margin for error here.
- Not every question is answered by every interviewee, so some of the numbers don’t line up perfectly. Sometimes interviewees forget a question or simply don’t want to answer it. And we’ve changed questions several times over the series, so sometimes a question didn’t pop up until we were 20-25 interviews in (or more!) If there’s a discrepancy in reconciling some of the numbers, this is likely the cause.
- I won’t address every question every reader might have about the interviews. I focused on the questions/answers I thought were most meaningful and in which I was most interested. If you see something you’d like to know, feel free to plow through all 400 interviews and get the info. 🙂
- I’ll use median numbers throughout this review. Averages are almost always higher as a few very high individuals skewed averages upward. That said, I’ll use the word “average” because it’s more common in English but the numbers are actually the medians. And in some cases I’ve listed the average numbers just for fun/perspective.
- There are not a lot of surprises here. What I’ve found after 400 interviews is the same I found after 300, 200, and 100. They’re also the same as what I expected to find (for the most part) when I started this series and even this website. After all, these are my people — I should know a thing or two about how they got wealthy. 🙂
With that said, let’s get into the facts…
The Numbers from 400 Millionaire Interviews
Here are the averages/totals on various measures:
- Age: 49.0
- Sex: 323 of 400 are men
- Married: 348 of 400 currently married (many were divorced and remarried)
- Children: 2.0
- Net worth: $2.48 million (average: $3.44 million)
- Household Income: $238k (average: $326k)
- Main source of income for the vast majority was a career (versus business ownership, etc.)
- About half had a side income of some sort with real estate being the top choice
- Annual spending: $95k
- 60% do not have a budget
- 36% review their portfolios daily, 16% weekly, and 22% monthly
- Age when they reached $1 million net worth: 40
- Top worry in retirement: healthcare (named by over half of the interviewees)
- 85% give to charity though the amounts given are generally low (especially given their wealth)
- 70% have an estate plan
- When asked what they think the most important part of E-S-I was for them, 37% said save, 30% said earn, 14% said invest, 9% said all three, and 11% said a combination of two of them
Some interesting stuff, huh?
Decoding Millionaire Insights: Numbers and Reflections
Let’s go through the above and I’ll give my thoughts…
- Gender and Marital Status: While the majority of interviewees have been men, it’s essential to recognize that many are also married. In fact, considering couples with a joint net worth over $1 million, we have as many women millionaires as men. Marriage can be a powerful wealth-building partnership. BTW, if a husband and wife have over $1 million in net worth, I count them both as millionaires.
- Total Net Worth: The combined net worth of the millionaires we’ve interviewed stands at an impressive $1.4 billion. Keep in mind that this figure is likely even higher, as some interviewees didn’t include home values or counted only liquid assets. Plus while some of the early interviewees “only” had something like $3 million, those net worths are likely much higher today (my net worth has doubled since I retired.)
- Annual Salaries: The total annual salaries of our millionaire interviewees amount to $130 million. Remarkable, right? Many are part of dual-income families, emphasizing the importance of teamwork. And I don’t know about you, but I am really impressed at some of the salaries people make these days. They are almost too high to conceive of!
- Career Paths: Contrary to the myth of entrepreneurs dominating the millionaire club, most millionaires achieved wealth through their careers rather than business ownership. Common jobs included various business roles, engineering, and medical professions.
- Side Incomes: Millionaires didn’t stop at their good salaries. They diversified by creating side incomes. These additional revenue streams strengthened their financial position. The earn-save-invest cycle became a virtuous loop, compounding their wealth over time. Real estate topped the list for these (it could also be classified as an investment instead of a side hustle.)
- Earning vs. Spending: There’s a significant gap between earning and spending. With a median income of $238k and median spending of $95k, this implies a savings rate of 60%. That said, many (probably most) interviewees didn’t account for taxes (especially) and other expenses so my guess is that average savings rates are in the 25-40% range (which is still good). When you make a high salary, it’s much easier to save a ton of it, of course.
- Budgeting Surprise: Surprisingly, many millionaires don’t maintain a budget. There are two main reasons for this. First, many have savings go automatically from their paychecks into savings, then simply feel free to spend the rest, knowing their savings are covered. Second, most have simply reached a point where their financial habits are so ingrained that a formal budget became unnecessary — they can control spending without one. That said, most still do track their spending in some form or fashion.
- Portfolio Monitoring: Millionaires checked their investment portfolios frequently — way more frequently than I would have guessed. While this can be risky due to emotional market reactions, these individuals seem comfortable with it and able to control themselves. When I was accumulating wealth I might check once a month or less, though these days I check more often because I have the time to do so. That said, I hardly ever make an investment change.
- Age of Millionaires: Everyday Millionaires found that the average age for achieving millionaire status was 49. Our group, however, skews younger at 40. I was 42 when I became a millionaire.
- Healthcare Concerns: Healthcare tops the list of retirement worries for millionaires. Even with substantial wealth, health-related expenses remain a significant concern for millionaires. If they have worries about this issue, what does that say about the rest of America being able to deal with these expenses?
- Charitable Giving: While most millionaires do give to charity, most percentages were very low. Considering their higher incomes, I would have expected/hoped for more substantial philanthropy. Some say they will give when they get older, but consider me doubtful on that claim.
- Estate Planning: Most millionaires have an estate plan, though many of their plans are only in their thoughts (not a formal, written plan). It’s hard to tell how many really have a written plan as they don’t want to seem like they are letting something this important fall through the cracks, so their answers can be cagey. Let me just say that this oversight can lead to complications down the road. Proper estate planning ensures a smooth transition of wealth and protects loved ones.
- Saving versus Earning: “Save” edges out “Earn” as the top E-S-I trait that these millionaires have used to become wealthy, but it’s close. We go round and round about this subject in the MMM forums and it’s a perpetual debate. That said, there’s a reason all three are in the formula — they are all important — though being just “good” (not great) at all of them is more than enough to make anyone wealthy.
In summary, the millionaire journey involves a mix of career success, smart financial habits, and a keen eye on health and legacy. Learning from their experiences can guide us all toward financial prosperity and well-being.
Your Conclusions and Contributions
As I wrap this up, I have a couple requests for you…
- First, would you please leave a comment on how the Millionaire Interviews have helped you, why you like reading them, or some other general comment about the series? I’d love to know what you think is valuable about these.
- Second, if you have not yet done an interview and are a millionaire, please consider doing one. Every person’s story helps someone so the more we have, the more impact we have. If you’re interested, just email me and I’ll send details.
The millionaire interviews have helped me because:
1. I am nosy….er, curious! The details, tips, habits, hacks and life advice/wisdom become internalized. (I have read every single interview.)
2. Motivation/inspiration. These interviews prove over and over again that, if you put your mind to it and apply discipled action, you WILL achieve it!
3. Life happens…and people still succeed. We are a group of committed people who have faced all sorts of challenges and still persevered.
I am MI 390.
The interviews helped me to understand the characteristics, traits, talents, actions associated with those achieving the millionaire status. They allowed me to see where I had potential gaps and make personal changes to achieve. In short, “Iron sharpens Iron” and I am best able to learn through others.
In a world that too often says “you can’t”, the interviews reassure others “YOU CAN” and dispel the myth surrounding the topic.
Great summary and thanks for all of the valuable information on both of your sites. I read every interview and enjoy the insight from others. In the past Money magazine had some sort of Millionaire in the making feature and I found that fascinating too. Both are relatable . Real people, real life. I’m looking forward to attending one of the in person meet ups with the group.
My family was featured in one of those Money features. We were at about $600k at that time.
I find the millionaire interviews fascinating because people get to tell their unique story, and I love that they have real numbers attached. Maybe I am also in the nosy/curious camp 🙂 is there anywhere else to read such details like this? People don’t talk like this in real life! It motivates me to continue on my slow accumulation, to know that yes, over time, it will grow to a significant amount.
Haha. We talk about this in MMM – there’s no one in real life to chat with about this stuff!
if there is a like button, i would like this comment. 100% agreed with you. 🙂
I was interviewed before 2019, and the comments were a slap in the face. I needed that bit of critical evaluation. In five years, I generated a 17% CAGR in my liquid net worth by setting three goals: monthly savings, spending, and a specific investment objective. We decided to live as if we were retired. This resulted in achieving our investment objective two years early and resetting that objective twice to higher figures.
First and foremost, let me say, that I am not a Millionaire, nor shall i ever be. However, after reading many of these posted documents i have developed personal changes that have increased my knowledge of financial issues. I now have increased my wealth in emergency funds, my savings rate increased from 10% to over 45% in 5 yrs. My investments are now ALL Index funds and current ROI is over 9%. I do not utilize a planned budget, but discuss spending more openly with my lady. We are both in our last years, financially sound, living in a Continued Care Retirement Community (CCRC), and enjoying life. Our only worries are the rising costs of medical care.
Good article! It seems like you and your wife really step up in your charitable giving. Could you do an article on how to choose charities to donate to? I don’t have kids and will leave the majority of my estate to various charities but I don’t know how to pick them. It seems like so many charities spend too much money on fundraising and other spending that I think is wasteful.
Here are some things I’ve done so far:
https://esimoney.com/ige-an-alternative-to-ise/
David,
Please check out the charity called Givewell. They actually evaluate and recommend (or if you donate to them directly, distribute to) specific charities that give the most bang for the buck (ie each dollar has the most impact in saving lives).
They put sound science/math behind their evaluations and have determined that their top charities only need about $3400 to save a single life. I’ve always greatly appreciated their analysis. Check them out.
I also highly recommend the books Doing Good Better by William MacAskill or The Life You Can Save by Peter Singer. Both are similar, both life changing regarding charity and giving.
I read because in life, you never stop learning and this series provides learning opportunities.
Also, as someone who mirrors some of these averages, albeit as a very low earner, but prodigious saver, I find comfort that there are a lot of people like me out there. Most of my friends and acquaintances don’t understand how I live my life and it’s as if I’m not “normal” because I don’t “work” very much or carry debt and high expenses. I almost submitted an interview a couple years back (wrote out the whole thing), but chickened out because inherently I’m a very private person. ESI said “these are my people” and I guess that’s ultimately why I read this series. These millionaire interviewees have financial habits close to mine and many of them tell parts of my personal story. Maybe someday I’ll get the courage to share my story, but until then, thanks to ESI and all the MIs for providing a sense of normalcy to my life and also for the useful nuggets of wisdom!
We have not had anyone outted yet! lol
Thank you for including me in the first 400. I really appreciate these interviews and hearing from others how they got there. I think we all look for those that are similar to us but the overall success across all interviewees is undeniable as is the power of following the basic ESI model.
I appreciate your doubt on the commitment to charitable giving as one ages. Generosity is a muscle that must be developed and then used lest it atrophies. The love of money is the root of all evil.
What I found after reading so many of these interviews was my slow and boring millionaire next door approach was actually the most common path to being a millionaire. The averages/totals on various measures above describe us almost perfect – we are very average!
Tangential item I learned partially from the ESI interviews and in more depth from discussions with these folks on Millionaire Money Mentors is that many of my fellow average millionaires suffer from imposter syndrome. Few of us actually feel “rich” or exceptional in our wealth levels or in our careers. Mostly a humble bunch who have a hard time believing they have actually “made it”.
To ESI – Congrats on collecting 400 interviews – An achievement!
Great stats, I’ve learned so much from these interviews, namely that I’m taking most of the right steps and don’t have to start some cool new company to become a millionaire. I also don’t budget, because of the automatic savings plan.
What I also find surprising/disappointing is even those with vast wealth/incomes don’t give commensurate with their net worth, nor do they have plans for what they want their beneficiaries to do with them. Maybe they are right in that once they retire and volunteer, they will give more to those causes, however maybe they should also read Die With Zero!
I never get tired of reading the Millionaire Interviews. So much to learn from everyone’s different approach.
I am retired but I recently went back to do a special project for a friend that I worked for in my 20’s.
Great example of how anyone can make it in the USA. Self-made, started with nothing, he reads, but does not write well, his income is $6 Million Annually in passive income, conservative investments, real estate, mobile home park, CD’s and treasuries. Simple method, work, make money, invest the majority, repeat. Not charitable at all though.
I have not filled out a questionnaire yet but enjoyed reading them. I find the ones most interesting when they are from the perspective of earning savings and investing the old fashion way with time, consistency, patience and diligence. To be honest, I read the entirety of the most relatable ones, where they have $3 – $7 million, approx 45 – 60 years old and grinded it out slow and steady. Those that exceed $10 million + and are younger than 40 are less interesting because they are either heavy on real estate, may have gotten an inheritance they do not talk about, own their own business or both spouses are making crazy income with Equity shares. I respect those peoples path, but its not mine, hence not as relatable. I am the grind it out kind of guy because I learned early on what its like to grow up poor and the true value in consistent savings, investing and the power of compounding. I will probably be in the group of 400 – 500 who will share his story.
I agree with you. I don’t read the whole article either (or maybe I’ll skim/speed read it) if it starts out with a relatively young person making a huge salary. My first thought is, wow, if you were not a millionaire by now making that kind of scratch, you are doing something drastically wrong. I’m more interested in the articles of people similar to me. The ‘trim the sails and steady as she goes’ over time group.
I feel the same way. There are plenty of interviews where the subject has such high earnings my thoughts are “what took them so long to become a millionaire.”
I look for new nuggets of knowledge in these interviews that I can apply to my own life. I’ve read close to all of them and although the general theme/formula to becoming a mulit-millionaire is mostly the same, they are still interesting reads since I’m a money nerd. In my mind, I debate whether another similar story (mine) is really beneficial to this community or is the effort of very little value.
IMO, everyone’s story is valuable and will reach some who has not been reached by another story.
I am not a millionaire and I work a low-income job after getting divorced. Reading these interviews keeps me focused on remaining debt-free and focused even in the midst of the struggle.
This is me as well. Married 36 years. We had crossed that million threshold but now divorced. I don’t know what the cutoff is for “low-income” but I don’t make anywhere near what 1/2 our income together was owning multiple businesses. I am thankful to be debt free with the exception of my mortgage. The lack of generosity is something I have noticed and it makes me sad. My giving percentage (not $ amount) is higher than most interviews I read. This is directly related to my faith, is something I find great joy in doing, and helps me be content with what I have. I have learned so much from reading the interviews.
Perhaps the things that have most stood out to me across these 400 interviews are the following:
– Most of the Millionaires exhibit grit in some form or fashion. Whether it be early life trauma, divorce, or career setbacks, almost all of them had to pull themselves together at some point, stare in the mirror, and talk themselves back into the saddle.
– on the topic of philanthropy, I have been surprised as well. As a wise person who works for a non-profit once told me, “Wealthy people are not necessarily generous. Generous people are generous”. Gratitude takes many forms, and is not linear.
– the vast majority of the interviewees, and MMM forum members, are humble, hungry, smart AND positive. The pervasive positivity is, in my mind, one of the key attributes of these successful folks.
Love the format, interviews and observations. “My People” indeed!
In reading the interviews I see what my wife and have accomplished mirrored by the interviewees. I won’t talk about money outside of my family and always wonder what the norm is for people who work hard and save. The interviews answer that question.
I am learning what is possible from others and making changes.
I enjoy hearing about retirement from folks experiencing that change in life.
I love the Millionaire Interviews! It’s a chance to read about folks who not only achieved the goal, but are willing to share the details, the good and the bad, what works and what doesn’t. Most people won’t get this detailed in casual conversation.
It’s a way to pass on your knowledge to a receptive audience.
And let’s be honest, it’s also a chance to brag a little. Becoming a millionaire is an accomplishment!
That said, here is some of the wisdom that stuck with me:
1. The only person who will take care of your older self is your younger self.
2. If you’ve won the game, stop playing. You don’t need any more, you simply need to protect what you have. Your investment philosophy should change from growth to preservation.
3. Luxury items do not make you happier. Experiences are what make you happier.
4. Be willing to pay for things that save time. Investing in lawn care and twice-a-month house cleaning is well worth the cost!
5. Pick up the check for a nice annual vacation with the family.
6. The Reading List. (Is there Any of us who HASNT read Millionaire Next Door?!)
I think most from this forum got wealthy by saving. It’s hard to give a percentage without it significantly affecting networth. people are taught not to pay 1% for investments! Also it’s hard to change habit from saver.to spender
I have enjoyed reading the interviews since I can learn from others and feel good about our accomplishments too. We enjoy saving and still are “learning “ how to spend in retirement. Life is good!! Be happy everyone.
Love being part of the group and found the above stats very interesting. I enjoy reading the interviews and like you, are amazed how young some of the millionaires are and how much they earn with their salaries. I like reading how the interviewees invest their money, what they do for a living, and how they spend their time now that they are retired.
Could you please explain the two numbers for net worth? Maybe I’m missing something but I was expecting you’d show one number – the average. So I’m not sure how there are two numbers:
Here are the averages/totals on various measures:
Net worth: $2.48 million (average: $3.44 million)
Ok I see it – I shouldn’t have read past the intro stuff that explained it’s median and mean
“ I’ll use median numbers throughout this review. Averages are almost always higher as a few very high individuals skewed averages upward. That said, I’ll use the word “average” because it’s more common in English but the numbers are actually the medians. And in some cases I’ve listed the average numbers just for fun/perspective.”
Ok John, as a statistics nerd I’m disappointed you blurred the precise distinction between average and median. Maybe I overestimated the intelligence of your audience.
I’ve enjoyed following along reading about out millionaires, comparing and contrasting with others.
My final observation; I’m surprised there is much difference in the total ESI percentages. Logically, ESI doesn’t work well without a balance of all three. I know, you said it wasn’t scientific, and it shows here.
Looking forward to more stories of readers who transition from accumulation to DEcumulation.
I’d expect you to use the term “arithmetic mean” if you’re a stats nerd!
The MI’s are one of the most interesting parts of ESI Money for me. Just always fascinating to see other’s journey/process. pulling back the curtain! Can learn a lot from what others are doing, and just appreciate differences and similarities. There is a lot of information shared here that would not be openly shared in other conversations with friends and family because can be viewed as taboo… or folks are judgemental.
I’ve always subscribed to the statement: “In the abundance of counselors there is wisdom” and this site and the interviews have given me access to not only wisdom but sage counsel and insights into areas that have benefitted us (and others) greatly. I appreciate the candor and wide-array of insights that have helped me fine tune our life and foundational activities that enhance our future. A benefit to others as well as ourselves. Keep the sharing and interviews coming…….
I am MI-285 and I look forward to reading these interviews every week!
1. I really enjoy reading people’s journeys to financial freedom. As someone else mentioned, most if not all display grit and determination and didn’t necessarily have any handouts to help them along. They are very motivational!
2. Looking back on choosing to retire early, I feel these interviews gave me the confidence to pull the trigger as I saw others in similar situations moving forward with their plans. I think they helped me avoid OMYS.
3. I enjoy reading about books or websites other people read as I feel I can always learn something new.
4. Again, as others have said, most people don’t want to discuss financials. This site removes the taboo-ness (is that a word?) of the subject, and I appreciate the transparency people display in their interviews.
One thing that surprised me in your article was that only 77 of the 400 interviews were done by women. I am one of them. I think this shows there is a huge opportunity for women to become more involved in their financial futures, or to get comfortable sharing their stories or seeking advice. I look forward to reading more of these!
Thanks for all the great reads!
It could also be because most women are not comfortable talking about themselves or may not read this forum.
I started reading the millionaire interviews at least 6 years ago and they gave me hope to achieve the same level of wealth, so thank you! Over that time, I have tripled my earnings and my savings. I now track my net worth.
One interviewee (who I don’t remember) mentioned that while they don’t give to charity, they do pay hefty taxes. I echo that sentiment to an extent. I give to family members and friends who are in need. Charity begins at home. I am going to up my giving this year and will consider doing this as a percentage of income, likely to homeless shelters or something similar. Thank you, ESI, for the great content over the years! You have challenged me to do better.
I’m number 331. I like reading the interviews to see how others have done it and confirm some of the things my wife and I did/do. Knowing the amount of focus and sacrifice needed to get there, having some affirmation is helpful, esp in today’s world where there are more naysayers than ever.
Like so many mentioned before, I really do love reading the MI series. Yes, there’s a lot of repetition, but I think that’s telling us something!
My #1 thing I’m looking for when I read is any potential blind spots. I think I have all my bases covered, but you don’t know what you don’t know.
My interview will show up in July, and if I had read this post before writing … I would have been even more verbose. How do you scope your story?
I really enjoy these interviews. So much wisdom to learn from. It also reinforces that E, S & I are the sure way to becoming a wealthy person. There were some interviews with medium to low income people and I especially loved reading them as it gives hope for a lot of us. It has also made me mroe financially aware and be willing to take certain risks that I wouldn’t have taken before.
It has also made me comfortable with the idea that being rich isn’t a bad thing after all.
I was also surprised at the low level of charity people gave, but it also made me wonder if most people who give charity, do it silently and not talk about their charity or their wealth. There’s a LOT of money every charity is getting and lot are big donations and definitely a lot of people are giving. It’s just not reflected here.
When I stumbled upon these many years back, it helped me realize what was possible. I was already on the path, but I started focusing more on the saving side of things. It has paid off well.
I’ve enjoyed reading the testimonials for many years now! Since I was trying to get out of financial bondage in the early nineties, I sought help from the bible about money and stewardship and wanted to hear how others had gotten out of such rotten condition. It was quite a few years later after I was a millionaire that I came across ESI, yet it scratches the Kravitz itch my wife says I have. It’s interesting to hear how others have done it that may be somewhat different than the road I took to wealth: (1) budgeting including giving tithes and offerings and controlling spending (2) to help build a first-tier emergency fund of $1,000, (3) then pay off all non-mortgage debt, (4) then build a second-tier emergency fund of $10,000, (5) while at the same time investing at least 10% of my gross income largely on no-load low-expense stock index mutual funds of the large cap, mid-cap, and small cap variety, (6) then pay off my mortgage early using all the additional cash flow createad by increased income and debt elimination, (7) finally have so much cash flow available I can give far more in offerings to gospel ministries and worthwhile charities, invest two to three times previous amounts, put aside funds to meet other future needs, and reasonably increase spending on desired experiences and things. It has been interesting to say the least as some have followed a similar path but others have had far more real estate, sydicate, and alternative investment exposure than I have. I plan to continue to follow ESI and am sure I’ll hear new insights from time to time that will give me ideas of things I could do particularly in the investment arena that could help me in my retirement endeavors.
Okay really enjoyed this as well! Only thing I was hoping for was the median/average of giving. After reading all of the interviews I was surprised how low charitable giving seemed. I always thought millionaires were extremely giving for some reason (probably because in the media you always hear about famous people giving millions to their alma mater or whatever), until I started reading these interviews.
But lots of great info!!