Who said 90% of all millionaires become so through owning real estate?
Shelby Elias | “90% of all millionaires become so through owning real estate.” This famous quote from Andrew Carnegie, one of the wealthiest entrepr... Instagram.
Introduction. Real estate investment has long been a cornerstone of financial success, with approximately 90% of millionaires attributing their wealth in part to real estate holdings.
Building Wealth
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” - Andrew Carnegie, billionaire industrialist.
Ninety percent of all millionaires become so through owing real estate.
Real estate offers a tangible and stable asset class that can withstand economic fluctuations. It's not just about making money; it's about preserving and growing wealth over generations. One of the secrets to millionaire wealth is the creation of multiple streams of passive income.
Choose the right career
And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”
For hundreds of years, buying real estate has been one of the best ways to accumulate wealth. Sure, we've seen real estate boom-and-bust cycles in recent decades, but over time, owning real estate has made thousands of people rich in every part of the United States.
No man becomes rich unless he enriches others.
WEALTHIEST MAN IN THE WORLD
Andrew Carnegie sold his steel company to J.P. Morgan for $480 million in 1901. Retiring from business, Carnegie set about in earnest to distribute his fortune. In addition to funding libraries, he paid for thousands of church organs in the United States and around the world.
In an 1889 essay, steel magnate Carnegie told his fellow business leaders, "The man who dies thus rich dies disgraced." Carnegie believed that the wealthy should repay their debt to society. True to his beliefs, by his death in 1919 he had divested himself of more than 95 percent of his fortune.
Who are the 1% wealthy?
You need more money than ever to enter the ranks of the top 1% of the richest Americans. To join the club of the wealthiest citizens in the U.S., you'll need at least $5.8 million, up about 15% up from $5.1 million one year ago, according to global real estate company Knight Frank's 2024 Wealth Report.
Additionally, statistics show that the top 2% of the United States population has a net worth of about $2.4 million. On the other hand, the top 5% wealthiest Americans have a net worth of just over $1 million. Therefore, about 2% of the population possesses enough wealth to meet the current definition of being rich.
Top 2% wealth: The top 2% of Americans have a net worth of about $2.472 million, aligning closely with the surveyed perception of wealth. Top 5% wealth: The next tier, the top 5%, has a net worth of around $1.03 million. Top 10% wealth: The top 10% of the population has a net worth of approximately $854,900.
| Rank | Asset | Average Proportion of Total Wealth |
|---|---|---|
| 1 | Primary and Secondary Homes | 32% |
| 2 | Equities | 18% |
| 3 | Commercial Property | 14% |
| 4 | Bonds | 12% |
But just because it's the "American Dream" and a tangible sign of success for many, it doesn't mean it's your best option if your goal is building wealth. While real property can boost your balance sheet and play a part in growing your wealth, it's critical to understand that you don't have to buy property to get rich.
Many self-made millionaires have money coming in from several places, including their salaries, dividends from investments, income from rental properties and investments they have made in other business enterprises, to name a few examples. If one income stream slows down, there's another that can take its place.
Honor Their Legacy
But before you go ahead with any small or big plans you may have, think about the person who has left you the inheritance. It is honorable to preserve their legacy through the money they have left behind even if they're no longer around.
Dave Ramsey on X: "Top 5 Careers of Millionaires: 1. Engineer 2. Accountant (CPA) 3. Teacher 4.
The median salary for Americans is around $70,000 a year, according to the most recent census data from 2021. A salary of $100,000 a year, with the assumption that you are an individual without dependents, would classify an individual as upper-class — but many of these people don't feel rich.
Donald Bren takes the crown as the wealthiest real estate mogul globally, boasting a staggering net worth of $16.2 billion as of August 2022. His fortune skyrocketed by nearly two billion dollars in just two years.
Has anyone become a billionaire from real estate?
in Conclusion, becoming a billionaire in the real estate industry is a rare achievement, and success is never guaranteed. It requires a combination of skill, knowledge, opportunity, and a bit of luck.
Can you make $1 million in your first year selling real estate? It can be done. In fact, it has been done. But it doesn't happen by luck or accident.
Go as far as you can see; when you get there, you'll be able to see farther. If you have to ask how much it costs, you can't afford it.
A quitter never wins and a winner never quits. A quitter never wins-and-a winner never quits.
If you want to succeed you should strike out on new paths, rather than travel the worn paths of accepted success.
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