The Money Muse

As someone who’s set an aggressive goal of becoming a millionaire by the time I’m 40, I’ve found myself wondering exactly how long it typically takes people to reach this financial milestone. With a net worth of $290,000 at age 30, I feel like I’m on the right track, but it’s easy to get caught up in the details of how others have achieved this goal. So, I did some research, and here’s what I found about the timeline and characteristics of people who become millionaires.

The timeline: How long does it really take?

Reaching millionaire status isn’t something that happens overnight. In fact, for many people, it can take decades of consistent saving, investing, and smart financial decisions. But how long does it typically take?

According to data from the Federal Reserve’s Survey of Consumer Finances, the median net worth of households headed by someone aged 35-44 is around $91,300. But the path to $1 million is very much achievable if you are strategic with your financial decisions. The time it takes to reach that million-dollar mark can vary significantly based on your income, spending habits, and how early you start saving and investing.

For example, Vanguard reports that with consistent saving and investing in a well-diversified portfolio, you could potentially reach $1 million in 20-30 years if you start early and consistently contribute to retirement accounts like a 401(k) or a Roth IRA. The power of compound interest is a big reason why starting early makes such a huge difference in building wealth.

Age of millionaires.

So, how old are people when they actually reach millionaire status? The National Study of Millionaires by Ramit Sethi (author of I Will Teach You to Be Rich) found that the average age of a self-made millionaire in the U.S. is 58 years old. This reflects a lifetime of hard work, careful saving, and disciplined investing.

It’s important to note that many millionaires don’t reach their wealth until later in life. However, if you start early, like I did, it’s certainly possible to reach that milestone before you hit your 40s or 50s, which is my goal. You just have to stay disciplined, stick to your plan, and understand that there will be both ups and downs along the way.

What do millionaires look like?

Millionaires don’t all fit into a single mold, but there are some common characteristics that many share. Some of the most consistent traits among millionaires include:

1. They live below their means. This is perhaps the most consistent trait of self-made millionaires. They focus on saving and investing, not on displaying wealth through material possessions. In fact, according to Thomas Stanley’s research in The Millionaire Next Door, many millionaires live in modest homes, drive average cars, and lead simple, frugal lifestyles.
2. Homeownership is common, but not always necessary. While many millionaires do own their homes, it’s not a requirement for building wealth. According to the National Study of Millionaires, 86% of millionaires own their primary residence. However, the study also shows that millionaires tend to live in homes that are more modest than expected. For some, renting can provide flexibility, especially when factoring in the potential for investing in other assets like real estate, stocks, or businesses. Homeownership is often part of the wealth-building strategy, but it’s not an absolute necessity.
3. Many are married. According to the National Study of Millionaires, approximately 90% of millionaires are married, which can often create a solid financial partnership. That said, it’s not a requirement, and many successful single millionaires also exist.
4. They prioritize investing. Self-made millionaires consistently prioritize investing in assets that grow over time, like stock market funds, real estate, and other wealth-building vehicles. Their primary wealth is not tied to income alone but to their assets growing at a steady pace.

How am I staying on track?

With my goal to become a millionaire by 40, I’m focused on continuing to contribute aggressively to my retirement accounts, staying consistent with my investment strategy, and keeping an eye on opportunities to grow my side hustle income. My net worth is currently $290,000 at age 30, and I believe I’m on track, but I know there are still many years ahead to keep building my financial foundation. Even if I don’t hit my goal exactly on the dot, I know that by staying disciplined and patient, I’ll be in a much stronger financial position than if I didn’t have a plan.

The bottom line.

If you’re wondering how long it takes to become a millionaire, it really depends on when you start and how consistently you stick to your financial goals. While it’s typical for many to reach this milestone later in life, it’s certainly possible to get there earlier with smart, consistent efforts. The key is to start investing, living below your means, and sticking to your long-term strategy.

Whether you’re aiming for millionaire status by 40 like I am, or taking a longer approach, the most important thing is to stay focused on the long game and trust that your efforts will pay off in the end.