Oh boy, let’s dive in. So, apparently, the Federal Reserve’s been chatting about how the average net worth over here in the U.S. has somehow jumped up to over a million bucks. Sounds wild, right? That’s a 42% rise from 2019’s numbers. Inflation was part of the mix too, but even after balancing it out, our wealth is up by like 23%. Go figure.
Let’s celebrate, shall we? Or not. Those who’ve hit the millionaire mark now have more choices, more freedom. Kind of like a ‘get outta jail free’ card for real life. But here’s the kicker: some folks are raging about this prosperity thing, chanting about inequality, like the Grinch crashing a Christmas party.
So, why’s everyone fussing? Mainly, it’s this imbalance thing. Some folks argue it’s just not fair. A small bunch of multimillionaires and billionaires skew these numbers big time. Imagine this: about 16 million folks here have crossed the million-dollar finish line. That’s roughly 12% of the population. And get this, 8 million of those are actual multimillionaires.
But let me throw you a curveball. It’s not just high-earners hitting seven figures. Nope. Tons of middle-class folks are shaking hands with their millionaire status too. What’s their secret sauce? They’re smart with their cash, avoiding bad debt, investing in stocks, you name it.
Back when COVID-19 hit, people found themselves saving more. The relief funds, shutdowns, you know the drill. All this means money market funds soared to almost $6 trillion. But, if saving isn’t your thing, this might not sound like good news.
Now, if you want a sneaky tip from me, housing prices creeping up is a win if you’ve got a roof over your head you actually own. Stocks? Also up. Good news for the 61% who’ve put their toes in that pool.
Sure, the government helped. A bit. But turning your piggy bank into a treasure chest needed some active teamwork between those two ears. We’ve all got buddies who spend on fancy brands and dine out Mondays through Sundays. Guess they’re choosing the current splurge over having millions later.
Small investments are like those seeds you plant. Grow ‘em and they might turn into massive oaks – aka, bigger bank accounts. Those who save? They end up rolling in dough eventually. Unequal? Sure. Unfair? Debatable.
And here’s the mantra: work, save, invest, rinse, repeat. Not rocket science, but demands patience. Loads of it. People who are clawing their way up now, they’ll likely hit a sweet spot eventually. Trust me. Once upon a time, in my twenties, I had zip – no job security, nada in savings, zilch in investments. Somehow, miraculously, that story evolved.
Polls back me up on this. Millionaires are rare in the under-35 scene, making up just 1%. But, fast forward to folks aged 55-64, and it’s a different tale: 20% are in the millionaire club, with 11% holding more than $5 million. Dang.
Sure, struggles persist. Not everyone’s swimming in cash. But maybe what they really need is a map and a plan. Anyway — wait, where was I? Oh right — that’s the scoop on this whole “Seven-Figure Club” spiel.
