Millionaires multiply across the US, but most find it’s not all mansions and champagne

By MATT SEDENSKY

Updated 2:40 PM EDT, July 29, 2025

NEW YORK (AP) — As a child, Heidi Barley watched her family pay for groceries with food stamps. As a college student, she dropped out because she couldn’t afford tuition. In her twenties, already scraping by, she was forced to take a pay cut that shrunk her salary to just $34,000 a year.

But this summer, the 41-year-old hit a milestone that long felt out of reach: She became a millionaire.

A surging number of everyday Americans now boast a seven-figure net worth once the domain of celebrities and CEOs. But as the ranks of millionaires grow fatter, the significance of the status is shifting alongside perceptions of what it takes to be truly rich.

“Millionaire used to sound like Rich Uncle Pennybags in a top hat,” says Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, a wealth management firm in El Segundo, California. “It’s no longer a backstage pass to palatial estates and caviar bumps. It’s the new mass-affluent middleweight class, financially secure but two zeros short of private-jet territory.”

nflation, ballooning home values and a decades-long push into stock markets by average investors have lifted millions into millionairehood. A June report from Swiss bank UBS found about one-tenth of American adults are members of the seven-digit club, with 1,000 freshly minted millionaires added daily last year.

hirty years ago, the IRS counted 1.6 million Americans with a net worth of $1 million or more. UBS — using data from the United Nations, World Bank, International Monetary Fund and central banks of countries around the globe — put the number at 23.8 million in the U.S. last year, a nearly 15-fold increase.

The expanding ranks of millionaires come as the gulf between rich and poor widens. The richest 10% of Americans hold two-thirds of household wealth, according to the Federal Reserve, averaging $8.1 million each. The bottom 50% hold 3% of wealth, with an average of just $60,000 to their names.

Federal Reserve data also shows there are differences by race. Asian people outpace white people in the U.S. in median wealth, while Black and Hispanic people trail in their net worth.

Barley was working as a journalist when her newspaper ended its pension program and she got a lump-sum payout of about $5,000. A colleague convinced her to invest it in a retirement account, and ever since, she’s stashed away whatever she could. The investments dipped at first during the Great Recession but eventually started growing. In time, she came to find catharsis in amassing savings, going home and checking her account balances when she had a tough day at work.

Last month, after one such day, she realized the moment had come.

“Did you know that we’re millionaires?” she asked her husband.

“Good job, honey,” Barley says he replied, unfazed.

It brought no immediate change. Like many millionaires, much of her wealth is in long-term investments and her home, not easy-to-access cash. She still lives in her modest Orlando, Florida, house, socks away half her paycheck, fills the napkin holder with takeout napkins and lines trash cans with grocery bags.

Still, Barley says it feels powerful to cross a threshold she never imagined reaching as a child.

“But it’s not as glamorous as the ideas in your head,” she says.

All wealth is relative. To thousandaires, $1 million is the stuff of dreams. To billionaires, it’s a rounding error. Either way, it takes twice as much cash today to match the buying power of 30 years ago.

A net worth of $1 million in 1995 is equivalent to about $2.1 million today, according to the U.S. Bureau of Labor Statistics.

A seven-figure net worth is, to some, as outdated a yardstick as a six-figure salary. Nonetheless, “millionaire” is peppered in everything from politics to popular music as shorthand for rich.

“It’s a nice round number but it’s a point in a longer journey,” says Dan Usen, a 41-year-old from Providence, Rhode Island, who works in information technology and who hit the million-dollar mark last month. “It definitely gives you some room to breathe.”

No other country comes close to the U.S. in the sheer number of millionaires, though relative to population, UBS found Switzerland and Luxembourg had higher rates.

Kenneth Carow, a finance professor at Indiana University’s Kelley School of Business, says commonalities emerge among today’s millionaires. The vast majority own stocks and a home. Most live below their means. They value education and teach financial responsibility to their children.

“The dream of becoming a millionaire,” Carow says, “has become more obtainable.”

Jim Wang, 45, a software engineer-turned finance blogger from Fulton, Maryland, says even if hitting $1 million was essentially “a non-event” for him and his wife, it still held weight for him as the son of immigrants who saved money by turning the heat off on winter nights

The private jets he envisioned as a kid may not have materialized at the million-dollar threshold, but he still sees it as a marker that brings a certain level of security.

“It’s possible, even with a regular job,” he says. “You just have to be diligent and consistent.”

The resilience of financial markets and the ease of investing in broad-based, low-fee index funds has fueled the balances of many millionaires who don’t earn massive salaries or inherit family fortunes.

Among them is a burgeoning community of younger millionaires born out of the movement known as FIRE, for Financial Independence Retire Early.

Jason Breck, 48, of Fishers, Indiana, embraced FIRE and reached the million-dollar mark nine years ago. He promptly quit his job in automotive marketing, where he generally earned around $60,000 a year but managed to stow away around 70% of his pay.

Now, Breck and his wife spend several months a year traveling. Despite being retired, they continue to grow their balance by sticking to a tight budget and keeping expenses to $1,500 a month when they’re in the U.S and a few hundred dollars more when they travel.

itting their goal hasn’t translated to luxury. There is no lawn crew to cut the grass, no Netflix or Amazon Prime, no Uber Eats. They fly economy. They drive a 2005 Toyota.

“It’s not a golden ticket like it was in the past,” Breck says. “For us, a million dollars buys us freedom and peace of mind. We’re not yacht rich, but for us, we’re time rich.”

With my holdings I guess I am a millionaire.

A one time investment of $3,000 in the S&P 500 a birth will grow to over $1,000,000 in 64 years.

There is no mathematical reason most of my low income tenants are not on track to become millionaires. The problem is they do not have the vision, understanding, or desire to become a millionaire. They believe the culture that they will never get ahead.

I had always perceived a millionaire as someone who had $1M liquid/semi-liquid. (ie, a CD that matures on a predetermined date is more liquid than a structure that needs a buyer.) When I realized that it was just net worth--- that seemed much less impressive. Especially because the house you bought for $20k back in 1995 is now worth $500k in 2025... value and money-on-paper is so arbitrary.

Come on people.

I finally made it and now reality is stripping it all away.

I know, Zero, it's a bit deflating, isn't it?

The old adage "you make your money when you buy" is simply not true - never has been for us. We don't make money when we buy: we SPEND money when we buy :)

Then it's all about how fast will this place pay us back (and go on to actually make money?) The WORTH of the property is meaningless except when it comes to taxes and insurance :( We MAKE money via net cash flow.

Robert, Canada tightly controls immigration because of universal health care. The UK did not and now their system is quickly crashing and burning. Out-of-control US immigration is crashing government-funded care here too.

US health care has changed markedly since I was younger into a system that is controlled by insurance and drug companies and *major major fraud* in our "free" systems like Medicaid for the poor or Medicare for the old.

And Universal Health Care such as Canada provides is simply not possible forever without some sort of backup option. Canada has fewer people in *total* than the single state of California. And still Canadian citizens have to buy supplemental insurance just like we do, and some have to leave Canada to get the care they need in a timely manner: Canada openly states they PRIORITIZE health care. You wait in line for your turn.

But who does the prioritizing? What if you have a blip on your leg that just looks like a mole so you have to wait to be seen but then learn that it is in fact now metastatic melanoma? Now you are in dire need of immediate, catastrophic care. It happens, you know it does.

Or what if if it's a major quality of life issue, like a hip replacement that takes years to get on the "free" list because the agency running the list decides you are old, it doesn't matter, you are not running marathons anyway. It happens, you know it does.

I have lots of Canadian friends and they are very happy with "free" health care when they are young and healthy and/or have average problems.

But as they age, many have to leave the country to get "old people" care, like that hip replacement, in a timely manner.

Ken, I know. Investing in Real Estate has many meanings and many outcomes.

RobertON, we keep telling you that nobody wants Canada to become a state of our union. It was just something that the current president said to get a rise out of Canadians, and it has worked.

My wife had a friend in Canada many years ago. She had a tooth that needed major work. It took her a very, very long time to get in. So much so that she considered driving down here to get it handled out of pocket.

That is the only person I have talked to personally from Canada so that might be a one off.

As for the tariff issues, well we will have to wait and see how it goes. I was not a fan to begin with, but it might be opening the eyes of many countries as to how things should work.

WMH, I make money when I buy, but it never seems to reach the bank on purchase.

We live thru cashflow as well. I track each door that way.

".... financially secure but two zeros short of private-jet territory.”...."

"hirty years ago, the IRS counted 1.6 million Americans with a net worth of $1 million or more."

"... with an average of just $60,000 to their names."

"All wealth is relative. To thousandaires, $1 million is the stuff of dreams. To billionaires, it’s a rounding error. Either way, it takes twice as much cash today to match the buying power of 30 years ago."

"The vast majority own stocks and a home..."

"The private jets he envisioned as a kid may not have materialized at the million-dollar threshold, but he still sees it as a marker that brings a certain level of security."

Let's reword that.

"The Rolls Royce he envisioned as a kid may not have materialized at the million-dollar threshold, but he still sees it as a marker that brings a certain level of security."

"Everybody thinks $1 million is rich, but the education system does nothing to teach people how to get there"

"My 27 year old section 8 tenant, who also gets food stamps, free day care, utility assistance, etc, can become a millionaire if she invests in an IRA."

"That would only be a $40,000 a year income in retirement."

"... the education system was not designed to teach kids how to be rich,it was designed to teach kids to be good little workers for the system"

"I don't like a piece of paper that tells me I'm worth this much this month, and then it sheds value like crazy and I'm only worth half of that next year. Instead, I like the investment that I can touch, and know that as long as it's in good shape and working, it brings me $x this month, and $x next month, and $x the month after that... Much more dependable."

If we all knew that sooner.....

"You need multiple millions to be truly wealthy."

I beg to differ, you only need to be content with what you already have. Wealth of happiness is within.

" I realized a long time ago "Net Worth" means ABSOLUTELY nothing - especially if it's in rental real estate, and you have to liquidate to realize the worth in cash for some reason - then taxes can take more than half."

That's a good point.

"But then again I am content with being a hundred dollaraire."

Zero knows what happy is.

"a country with 1/10 population"

That sounds great. When can I move in? No wait, there is a reason for that. It's really cold there. Nevermind. Tempting though.

"Canada has fewer people in *total* than the single state of California."

Now I want to move again.

"You wait in line for your turn."

Could be another reason why Canada has a lower population? That's okay, unless I'm in line?

"It took me quite a while to figure out"

Apparently, I'm still working on that.

"She had a tooth that needed major work"

They used to take care of that with a piece of string tied to a door knob.

I suddenly realized I was blowing everyone's emails up, including my own. My apologies.

"...commonalities emerge among today’s millionaires. The vast majority own stocks and a home. Most live below their means. They value education and teach financial responsibility to their children."

Hey Gilligan,

Back in 1754 then First Lt George Washington, passed through our area telling the French that they were unwelcome guest during the French and Indian War. So many gravestones around here say that they walked with Washington during his several journeys in Western Pa.

This article basically says that a million dollars isn't what it used to be. With median priced homes at over $400,000 each, it doesn't take to much to achieve seven figures. The bigger concern for me is keeping the tax man out of pockets.

.... then there are the swings in the real estate market. I remember loosing more than a million between 2007-2013 in the hood.

Between the dawn of man and the 1800's, half of all those born would die before age 30. By the 1800's it had gone up to the ripe old age of 35. And they ate natural, exercised and drank pure water.

What they didn't have was AC in those areas that most need it (which is not Canada.) AC has saved countless lives...

ş The 1975 Chrysler Cordoba gained cultural notoriety thanks to its ads featuring Ricardo Montalbán, who famously praised its “rich Corinthian leather.” That phrase was actually a clever marketing invention, as there’s no specific leather type called “Corinthian”—but it sure sounded luxurious.

RayRay,

Good stuff.

I was hoping the article would move into billionaire data.

Dave Ramsey likes to say a millionaire is a person with a million dollar net worth.

But as WMH mentioned, you can't live off NET WORTH.

We can't spend EQUITY. Gotta have CASH to buy groceries.

Me? In today's economy I think if we want to consider a "millionaire" as wealthy it should be based on cash flow.

With 2.6% mortgages and 20 years of payments, folks with a decent job were buying $400K homes, which will probably be worth $6-800K or more when paid off.

I like MMIT's comment about a low income person with a consistent savings plan can build wealth.

I will say this - debt free home and debt free rentals makes for AMAZING cash flow!

BRAD

NE,

When I was in college the direction of the college was to make you a college professor.

Now, based on the colleges and graduates I see, I don't think they are even training them to be worker bees. I see their goal as "fill seats, get tuition money".

Being a millionaire should be inflation adjusted as the point is not the money but the purchasing power.

I love looking back on to the way things used to be. If you see what annual wages were in the 1950's and create the ratio of how long you had to work to pay off a car or a house, and then compare that to today- there is a telling story.

I don't know if those mandated safety features are driving up the cost of cars along with the additional planning and permitting fees for houses, but it takes an inflation adjusted salary almost 1.75 higher than inflation to buy that same house or car.

But Ray they really aren't the same house or car. The houses most people want are five times as big as days of old. And cars are filled with computers.

Materials alone drive the price of housing up. Interest rates are still half what they were when we first bought our personal places back in the day...my first cottage had something like a 15% REVERSE amortization loan on it, but it was assumable and I took it. Made a fair profit on that place a short time later. 1985.

Then we were lucky to snatch up multiple small houses for cash back in the mid/late-2000's before they were demolished and a giant home erected.

JS [CA]

"So compared to 30 years ago that would be about 2 million, but I would go back to 1975 when a million was actually a something. That would be about 6 million today. Now that’s a reasonably large amount of money."

yes, I agree. that sounds about right. I am sure many folks here are worth well over 6 M and still driving old cars, shopping for sales, doing handyman work on their own LOL The freedom of time, freedom of choice and sense of security that comes with 6M is priceless.