I finished the Millionaire Next Door this week. It's an interesting read. Basically, just because someone has a high income doesn't mean s/he has a high net worth. Many high income folks just get used to spending it all. There are case studies that lay this out and a whole bunch of statistics they formulated based on their studies. I personally liked the stories best.. But the great news is that you don't need a stellar income to become a millionaire. For the best odds, live frugally and invest the remainder wisely. To make the investing part easy, just find yourself a low-expense index fund or two and you're covered. And it's important to note that if you start ASAP, your odds are better.
They basically divide the population into 3 categories - underachievers, average, and prodigious accumulators of wealth. This is based on your age, income, and net worth. You can use the calculator below to find out what you are.
http://homefinance.nytimes.com/nyt/personalFinanceCalcs/calculator/wealth/
My results:
Your net worth is 0.049 of the Desired Net Worth
To me this seems a little unfair since I'm fresh 2 and a half years out of college and burdened with school loans. I do have a financial project and if all goes as planned, by my next birthday I will be at
Your net worth is 0.136 of the Desired Net Worth
Yay! Progress! And it does look like catching up is possible! The scary part is I thought the number they gave was in percent format. But it's not. 5% is a lot better sounding than .05%, y'know?
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