Dreaming of Being a Millionaire

Here's a small tidbit I found in the December issue of Money magazine that made me chuckle:

Adults in this country with a net worth of $1 million or more: 1.2%; high schoolers who expect to be millionaires by age 40: 39%.

Ha!

This just highlights the unrealistic expectations/lack of knowledge of today's teens. But there are also a couple other noteworthy things to comment on in this short quote:

1. Every time I write a post on "How to Become a Millionaire" or something similar, someone leaves a comment like "What's the big deal? A million dollars isn't that much. It's certainly not what it used to be." To which my response is usually "Maybe it's not much, but it's more than most people have." This proves it! Unless you're in the 1.2% that owns $1 million or more, $1 million is a goal for you to reach for.

2. There is a way today's high schoolers can become millionaires by age 40 -- if they really want to work at it. How is that? Check out How to Get Rich in Three Easy Steps. Teenagers are in especially good shape to make this happen because they have time on their side -- lots of time where their money can compound again and again to help make them the millionaires they want to be.

Comments

[Lazy Man and Money]

I guess it depends if you are talking today's 1M in value or 1M in physical dollars in the year 2030.

The average high schooler is, what, 16 years old? By the time they are 24 years will have passed. Working backwards, $440,000 in today's money would be equal to 1M when they are 40.

How many people at 40 today have $440,000? I'd be curious to know if that number is a lot closer to 39%. It may not be, but I'm thinking the gap here isn't much.

So while a million dollars today isn't what it used to be, it also won't be the same in 2030. If they were just able put $150,000 with an 8% return and wait 24 years, they'd get pretty darn close to one million without doing anything else.

[mapgirl]

I'd love a million dollars since I don't have that now. Whoever wrote that $1 million isn't a big deal, hasn't obviously ever had to deal with a million dollars.

I've had $10K in cash on my desk and it smells. $1 million would be filthy. If it was mine, I'd be pretty happy to put it into the bank and some investments.

I've also had to ask companies to pay $1 million invoices. When they made a payment for $750K, I had a dream the night before that I won the lottery. I don't think $1 million is insignificant at all.

Ah, but now I have to worry about what to keep and how to make it grow.