We all fantasize about being millionaires. But, how much do we really know about them? Yahoo Finance just published an article with “7 Millionaire Myths.” For instance, what do you think is the most common car make owned by millionaires in the US?
The answer is FORD! Who knew? Educate yourself on how the “other half” lives. Unless, of course, you ARE a millionaire. In that case, educate yourself on…yourself!
1. Millionaires Don’t Pay Their Taxes
It is estimated that millionaires, those in the top 1% of earners, pay about 40 percent of all taxes. Current tax regulation shifts may change these numbers to make this even larger than that — so think twice before accusing the millionaires in America of not paying taxes.
2. Millionaires Just Inherited Their Money
According to Thomas J. Stanley’s book, “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy,” only 20% of millionaires inherited their riches. The other 80% are what you’d call nouveau riche: first-generation millionaires who earned their cash on their own. Many millionaires simply worked, saved, and lived within their means to generate their wealth — think accountants and managers: regular people going to work every day. Most millionaires didn’t get their riches overnight when a rich relative died — they worked for the money.
3. Millionaires Feel Rich
From the outside looking in, you would think that millionaires feel rich and secure, but that’s not so. Most millionaires worry about retirement, their kids’ college fund and the mortgage just like the rest of us. Those worries are greatest among new millionaires, the people who just recently acquired their wealth.
4. Millionaires Have High-Paying Jobs
It certainly doesn’t hurt to be gainfully employed, but half of all millionaires are self-employed or own a business. It does help to have a college degree, as about 80 percent are college graduates, though only 18% have master’s degrees.
5. Millionaires All Drive Fancy Cars
You can get that idea of the rich guy in a fancy German car out of your head when you think of a millionaire: They actually drive a Ford, with the carmaker topping the millionaire preferred car list at 9.4 percent. Cadillacs run second on the millionaires’ favorite car list, and Lincolns third according to onmoneymaking.com. Car payments are an investment with little return, which is why someone looking to grow wealth avoids high-priced vehicles in favor of a more economical set of wheels.
6. Millionaires Hang Around the Golf Course All Day
Those millionaires are all retired, with nothing else to do but hang around the golf course, right? Wrong. Only 20 percent of millionaires are retirees, with a full 80 percent still going to work. It’s not as glamorous or fun, but millionaires go to work just like you do; it’s how the money gets in the bank.
7. Millionaires Are Elitists
We’ve already established that most millionaires earned their money and not inherited it, still go to work, drive a Ford, and worry about their kids’ college expenses. Sounds a lot like the rest of America, right? Millionaires come in all shapes and sizes — some may be elitists, but most are just regular Joes who successfully managed their money.