We now know how long it takes to become a self-made millionaire.
Author Thomas Corley has been busy studying on the habits of the rich and poor over the last five years, and through that research has found how long it takes to make it rich.
The answer? A minimum of 32 years.
“That’s how long it took the average self-made millionaire, according to my data. And let me repeat — that’s the minimum,” Corley points out in his blog on Business Insider.
To arrive at these figures, Corley documented the daily activities of 233 wealthy people and 128 people living in poverty, discovering a huge difference between the habits of the two groups.
To clarify, the rich were defined as having an annual gross income of $160K and at least $3.2 million in net liquid assets. The poor group, on the other hand, had an income of less than $35K and owned less than $5,000 worth of liquid assets.
“What’s even more compelling is the age in which these self-made millionaires actually rang the bell and struck it rich,” Corley writes.
Here’s the breakdown from his study:
- 1% became wealthy before the age of 40
- 3% became wealthy between age 40 and 55
- 16% became wealthy between age 46 and 50
- 28% became wealthy between age 51 and 55
- 31% became wealthy between age 56 and 60
- 21% became wealthy after the age of 60
“It’s clear from the above data that accumulating wealth takes a very long time. “
It’s a sobering study for those cooking up get-rich-quick schemes in their spare time, but also a great reminder of the effect of time in the wealth equation.
As we’ve written about previously, smart investment decisions and a long term time frame can make almost anyone a millionaire. But to get there, you need to focus on your finances and apply yourself.
And, of course, make the most of your early earning years because what you earn in your lifetime is determined now. According to a recent report from the Federal Reserve Bank of New York, your first 10 years in the labour market are likely to shape your lifetime earning potential.
So take Corley’s research on board as inspiration to set some investment goals and start moving toward your millionth dollar today.
Corley’s research can be found in his bestselling book, Rich Habits – The Daily Success Habits of Wealthy Individuals.
Here’s Corley on the impact of luck in the wealth equation:
Image: epSos .de, via Flickr