Budgeting, Personal Finance, Saving Money

There Are Over 1 Million New US Millionaires. Why You Aren’t One of Them?

Report: there are more than 1 million new millionaires in the US BCG
There are 1.1 new millionaires in the US according to a new report released by the Boston Consulting Group (BCG) through their Global Wealth Report. This raises the number of US millionaires to 7.1 million. This is fewer than the 9.63 million millionaire households reported earlier this year by the Spectrem Group. The discrepancy in total numbers of millionaires can be attributed to slight differences in the way each group calculates wealth. BCG calculates household wealth as assets which can be invested such as cash, deposits and securities, but not less liquid assets such as collectibles, business ownership, luxury goods or real estate. The Spectrem Group numbers also exclude real estate, but do include other less liquid assets the BCG report excluded. What both reports show is there are more millionaires in the US than there have been in previous years, and their ranks will likely continue to grow.

The BCG report found a 16.3% growth in US wealth in the past year, with the trend looking to increase going forward. They project millionaire’s wealth will increase by a minimum of 7.7% each year through 2018, a much larger increase in wealth growth than what’s expected from non-millionaires. Most of the increased wealth is coming from equity markets which have been doing well as of late.

The wealth increase wasn’t limited to those living in the US. The world’s richest 1% also had a banner year with global private wealth increasing 14.6%. This worldwide wealth increase led to 20% more millionaires all over the world, reaching a total of 16.3, up from 13.7 million in 2012. Asian countries fared best with a total increase of wealth of approximately $8.7 trillion. North America came in a close second with a wealth increase of $6.8 trillion.

If you find that you’re not one of the new millionaires included in this report, there could be a number of reasons for this. Below is a list of ten common reasons many people fail to become millionaires:

  • You spend more than you make each year
  • You try to “keep up with the Joneses” by trying to live up to other people’s expectations
  • You fail to pay yourself first
  • You have kids, and you have them too young
  • You own more house than you need
  • You continually replace things before you need to
  • You let others take care of your money
  • You don’t live a healthy life
  • You get a divorce
  • You have at least one bad habit that’s a money drain

If you currently aren’t a millionaire, or aren’t on course to becoming one, it’s likely due to the consequences of choices you’ve made in the past. The good news is you can make different choices from this point forward to create the wealth you want. It won’t necessarily be easy, you’ll need to create a plan, and you’ll need to avoid making the mistakes which drained your wealth in the past. By doing so, you may be able to count yourself as one of the newly crowned millionaires in these yearly reports in the not-too-distant future.

(Photo courtesy of Pamela Carls)

5 thoughts on “There Are Over 1 Million New US Millionaires. Why You Aren’t One of Them?

  1. I can relate to this part “You have kids, and you have them too young”. Since, I married very young and at at 21 I already have a baby. Honestly, it’s really quite difficult, especially that my husband was still studying that time. But, gladly, we are slowly taking a baby steps towards our goals.

  2. The first three bullet points applied to me. I spent more than I made, I tried to keep up with those pesky Joneses, and I failed to pay myself.

    I changed those habits and finally see the light. I won’t be a millionaire this year or even in the next five years, but I will some day. Tick – Tock.

  3. Great list. I have noticed that people have been wising up on the first 3 reasons mentioned. However, the remaining 7 wreak havoc on couples personal wealth with kids and divorce leading the charge. My wife and I made a decision to not have kids for the first 5 years of marriage. This decision has made all the difference in the world with regards to our personal wealth and happiness.

  4. I am currently not a millionaire because I just started my financial journey. I hope I will be in the new millionaire list in 10 years.

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