Free Money Finance is doing a series of millionaire interviews with a focus on how they became a millionaire. The series is up to number 11 and growing.
Based on the interviews, the most frequent way to become a millionaire is to earn a six figure base salary, live significantly below one's means and save the difference.
The need to earn six figures makes sense to me since someone saving an average of $50,000 per year would accumulate $1,000,000 in 20 years. The $50,000 saved would need to be done after taxes and living expenses which could easily equal a minimum of $50,000. Although possible, it would be very challenging to average earning $80,000, living on $30,000 and saving $50,000 per year.
For more on The Practice of Personal Finance, check back every Wednesday for a new segment.
This is not financial advice. Please consult a professional advisor.
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