Home » Advice » Entrepreneur » How Many Millionaires Are There In The World & Where Are They Located?
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Joshua Stanley
- July 6, 2022
- 8 mins
Many of us dream of becoming millionaires but not everyone can turn this dream into reality. If you’ve ever wondered just how many millionaires are there in the world, you might be surprised to know that as of 2020, there were 56.1 million millionaires representing just 1.1% of the world’s adults.
In this article, we’ll tell you everything you need to know about the world’s millionaires, from where they’re located to how they got to where they are today. We’ll also answer some of the most commonly asked questions about becoming a millionaire.
What is the number of millionaires in the world
According to Credit Suisse, there were 56.1 million millionaires across the world at the end of 2020. This represents around 1.1% of the world’s adults, meaning that you need to be a millionaire to reach the top 1%. The total net worth of these millionaires is around £191.6 trillion – an impressive statistic.
This number is slowly rising, so it’s likely that it will be even higher by now. However, it’s important to remember that the value of $1 million is slowly decreasing with inflation, so being a millionaire is becoming less significant as time goes on.
How many multi millionaires are there in the world?
According to a 2019 report from the Credit Suisse Research Institute, there were around 18.6 million multi-millionaires in the world in 2018. These ultra-wealthy individuals had net assets of at least $1 million, excluding their primary residence. As 5.2 million new millionaires were made in 2020, it’s likely this figure has now increased as the number of existing millionaires grow their wealth.
The majority of multi-millionaires in the world are concentrated in the United States. In 2018, there were around 5 million American millionaires, accounting for nearly one-third (27%) of all multi-millionaires worldwide. Japan is also a major contributor to this pool of global wealth, with 1.9 million millionaires making up 10% of the global multi-millionaire population.
In terms of wealth distribution, the majority of these ultra-wealthy individuals are concentrated in a small percentage of the global population.
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Which Country Has The Most Millionaires?
You might be wondering what country these millionaires live in. The truth is, they’re all over the world, and there are millionaires in every country of the globe. But what countries have the most millionaires residing in them?
It’s likely to come as no surprise that the US has the highest number of millionaires on its soil, with a 39.1% share of the world’s millionaires, totalling almost 22 million individuals. This means that almost four of every ten millionaires across the world lives in the US!
Here’s a breakdown of where the world’s millionaires live, according to Statista:
Country | Percentage of world’s millionaires | Total number of millionaires |
United States | 39.1% | 21.9 million |
China | 9.4% | 5.2 million |
Japan | 6.5% | 3.6 million |
Germany | 5.2% | 2.9 million |
United Kingdom | 4.4% | 2.5 million |
France | 4.4% | 2.4 million |
Australia | 3.2% | 1.8 million |
Canada | 3% | 1.7 million |
Italy | 2.6% | 1.5 million |
Spain | 2% | 1.1 million |
Inheritance Vs Earnings
Whilst some people earn their status as millionaires through opening a business or working their way to the top of their fields, others are given their status through inheritance. But how many millionaires are self-made, and how many become millionaires through inheritance alone?
Around 72.5% of the world’s millionaires are self-made, meaning that they earned their millions through hard work and determination of their own making. You might be surprised to learn that only a small percentage, approximately 7.4%, inherited their wealth.
The remaining 20.1% attribute their wealth to a combination of both personal earnings and inheritance.
How Long Does It Take To Become A Millionaire?
How long it takes to become a millionaire depends on the individual person, as well as how they choose to earn their wealth. Whilst some people may manage to become millionaires in just a matter of months, for others it can take a lifetime. But what is the average length of time that it takes to become a millionaire?
Business Insider conducted research to learn how long it takes to become a millionaire. They found that only 20% of millionaires earned their status before the age of 50. This means that 80% of millionaires didn’t earn their wealth until after the age of 50, meaning that it takes the average person at least 32 years to become a millionaire (assuming they begin accumulating wealth at 18).
28% of millionaires earned their status between the ages of 51 and 55, whilst a further 31% became millionaires between the ages of 56 and 60. You might be surprised to learn that 21% of millionaires didn’t earn their status until after the age of 60, when many people are starting to think about retiring!
This means that the most popular age to become a millionaire is in your 50s, with 59% of millionaires reaching the milestone during their 50s.
So, whilst the length of time that it takes to become a millionaire will vary person to person, the majority of millionaires do not earn their fortune overnight, contrary to popular belief. In fact, it takes most millionaires a lifetime to earn their wealth!
Can A Normal Person Become A Millionaire?
Many people wonder whether it is really possible for an average person to become a millionaire. The truth is, almost anyone has the potential to become a millionaire. But it’s about making the right decisions at the right time. One thing that sets most millionaires apart from the rest of the population is the drive and motivation that they have to achieve their goals. It’s this drive that makes them successful and enables them to ultimately become millionaires and, in some cases, even billionaires.
The majority of millionaires earn their money by investing. Whether it’s shares, bonds, companies, cryptocurrency or property, you won’t find many millionaires that aren’t well-versed in investment. By keeping a diversified portfolio of investment, they limit their risk whilst increasing their income streams and securing their wealth.
Whilst it is perfectly possible for any person to become a millionaire, you need to know exactly what to do with your money. Make the wrong decision and you could end up losing money rather than accumulating wealth.
What Is The Best Way For An Average Person To Become A Millionaire?
If you aren’t a natural entrepreneur, you might be wondering how you can begin to increase your wealth and get on the path to becoming a millionaire. Whilst there isn’t a one-size-fits-all approach to becoming a millionaire, there are a few things that you can do to increase your wealth and give you the best possible chance of earning millionaire status in the future.
- Avoid debt – It goes without saying that debt will prevent you from becoming a millionaire. Think of debt as negative wealth and avoid it wherever possible. If you do have debts, work towards paying them off as early as possible, reducing the interest that you’ll need to pay.
- Prioritise saving – No millionaire earns their status without saving. Whilst it can be tempting to spend your money as it comes in, any spending will be deducting from your total wealth and making it more difficult to reach millionaire status.
- Consider investing – The majority of millionaires have earned at least some of their wealth by investing. Whether you choose to invest in shares, bonds, cryptocurrency, property or companies, it’s important that your investments are well thought out to minimise the risk, so it’s a good idea to consult with a financial advisor if you’re unsure.
- Stay focused – It can be easy to become side-tracked, spending money on other things or not working so hard when you’re feeling comfortable with your bank balance. However, if you truly want to become a millionaire, you will need to stay focused in your goal and avoid being distracted by things that won’t increase your wealth.
- Set ambitious goals – If you are serious about becoming a millionaire, you will need to set ambitious goals and then act upon them. Whether it’s starting a business or beginning to invest your money, the key to becoming a millionaire is setting achievable goals and remaining focused on them.
What Is The Most Common Way To Become A Millionaire?
If becoming a millionaire is your dream, you might be wondering what the most common way to become a millionaire is.
As we discussed earlier, 72.5% of the world’s millionaires are self-made. This means that they came from lower or middle class families and earned their wealth through hard work, ambition and determination, rather than inheriting their wealth.
How these people accumulated their wealth varies greatly, but the majority of self-made millionaires cite their main income sources as investments and capital appreciation. This means that they invest their money wisely and earn profits from their investments.
Whilst it might sound simple, for most millionaires it has taken many years or even decades of determination, ambition, and strategic thinking to earn their wealth, along with their status as a millionaire.
How Can I Become A Millionaire In 5 Years?
Whilst many millionaires don’t earn their status until after the age of 50, it is possible to become a millionaire much sooner than this if you have the drive and make the right choices. So, how can you become a millionaire in five years?
1. Define Your Vision
First of all, you’ll need to create a financial vision. This means understanding exactly what you want from life, and how you see yourself financially in the future. The more detail you can add to your vision, the more chance you’ll have of achieving it.
For example, rather than saying “I want to be a millionaire”, add more detail to the vision. For example, “I want to be worth $1 million by the age of 50” or “I want to be receiving $100,000 pay checks by January 2025”.
Having a clear vision will give you something to work towards, as well as giving you the motivation and drive to be able to put in the hard work to get you to where you want to be.
2. Put A Plan In Place
The best way to achieve any goal is to put a clear plan in place with short term objectives. It can be hard to see where you’re going when you feel a long way off your ultimate goal, so having short term goals will help you to stay motivated and to see your progress over time.
Make sure you track your progress regularly, as this will help you to stay on track and eventually achieve your ultimate goal of becoming a millionaire.
3. Surround Yourself With Positivity
It’s easy to underestimate the impact that your environment has on your productivity and motivation. If you are surrounded by negative energy, this can have a huge effect on your ability to achieve your goals.
For the best chances of success, you need to build an environment that supports your vision and helps to propel you along your chosen path. This means surrounding yourself with people that support your vision and have a similar mindset.
4. Find A Mentor
As with everything in life, having a mentor can really help you to achieve your goals, as well as keeping you motivated on your chosen path.
Look to people who you consider to be role models, who may have already succeeded in the goal that you’re hoping to achieve. They will be able to give you advice on how best to achieve success, and you’ll be able to study exactly how they got to where they wanted to be.
5. Take Time Out
Becoming a millionaire is unlikely to happen overnight. In fact, it’s likely that it will take many months or even years of hard work before you begin to be rewarded for your efforts.
It’s easy to become burnt out when you’re putting all of your energy into achieving your goal. It’s essential that you take time out from work regularly, allowing your mind to rest and your body to recover.
Whether you choose to take a holiday or simply spend a few hours reading a book or taking a walk in nature, time for yourself is important. It might seem counterproductive to take time out from working towards your goals, but you’ll return to work feeling refreshed, energised and more productive.
Is It Hard To Become A Millionaire?
For the vast majority of people, the path to becoming a millionaire is not easy. After all, if it was easy, everyone would do it.
If you want to earn that coveted status, you’ll need to have determination and drive, along with the motivation to keep going even on the most difficult of days. The process often takes several years of hard work and saving, so you’ll need to have a strong ambition if you want to succeed in your vision.
In Summary
Around 1% of the world’s adult population have earned the coveted status of being millionaires. This makes a total of 56.1 million millionaires across the globe, with the vast majority of those living in the United States.
The path to becoming a millionaire isn’t an easy one, which is why few people manage to achieve this status during their lifetime. However, with enough ambition and drive, it is possible for almost anyone to achieve their goals, providing they make the right decisions at the right time.
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