What is the Average Millionaire Net Worth in the US?
There are around 100 Million Households in the US, and precisely 3.5 Million households in the US are millionaire households. According to various studies, more than 90% of American Millionaires’ Net Worth is between $ 1-10 Million.
And the rest of 10% Millionaires’ net worth is above $ 10 Million.
Now, the surprising thing is that more than two thirds of millionaires are first generation millionaires. This means that they have made this much amount of wealth in their own life time. They have not received any inheritance.
This shows us that making this much wealth in a single generation is substantially possible. Millionaires spend less and accumulate more wealth. They love assets like Stocks, Gold, Real Estate & Businesses. They love to Invest. Investments are their favorite activity.
If you start from scratch, then it is possible to build up to $ 10 Million of wealth in a single generation. The key of making it all happen is to start investing early.
What’s the Average Income of a Billionaire?
There are around 1,100 Forbes Billionaires (2009) and the Income of all the Billionaires varies dramatically because of several reasons. Due to the fact that it is almost impossible to count the average income of a Billionaire. Let’s see why.
Steve Jobs receives only $ 1 per year … that’s his yearly salary
Take the example of Steve jobs, the founder of Apple Corporation. Steve receives only $ 1 salary per year from Apple Corporation which is the lowest income in Guinness Book of World Records. Now, you are probably thinking – how can this be possible? How can a Billionaire live on a $ 1 yearly salary?
Well, he receives millions of dollars as dividends and bonuses from Apple Corporation. Because he owns a large chunk of Apple Shares. This arrangement is done for a well needed tax break. As there is minimal tax on Dividend distribution and higher tax on Income … so Billionaires prefer to keep their Income low and Bonuses and Dividends high.
Warren Buffet’s annual Salary is just $ 100,000
Warren Buffet makes only $ 100,000 per year and he has been doing that for more than 15 years. That being said, this amount of salary is well below the average salary of some top level executives. Buffet takes millions of dollars as bonuses and dividends.
Therefore, Billionaires are so much smarter that they keep their Income at ground zero. So it is almost impossible to calculate the average Income of billionaires. Another thing is that the Income of Billionaires has nothing to do with their life styles. Because most of the time, all of their expenses are being paid by several companies they own.
Are movie producers considered billionaires?
Well, No. Movie Producers are not Billionaires nor are the film stars. Many people misbelieve that film producers are billionaires. However, this is not true.
To be to the point … Who can become a Billionaire?
Well, A Person having a large chunk of stake (Shares) in publically listed company can become a Billionaire. There is no other way of becoming a Billionaire. A Person who develops a successful business from Scratch and later on takes that Business to the public can become a Billionaire or anyone who receives a Billion dollar fortune can become a Billionaire.
Now, go to Forbes.com and simply check the core principles of becoming a billionaire. All the Forbes Billionaires are billionaires because they have developed a successful business and taken it to the public.
People like Tiger Woods (famous playboy … I mean golf player) are very rare examples who have earned billion dollars by Income only.
Remember, Becoming a Billionaire is a Game of Valuations. You don’t necessarily need to earn this much money. You have to have the power to be able to “print” this much money legally. And you can do this by taking your Business to the public. And none of the movie producers have ever taken any company to the public … so they are not billionaires.