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Demographic Profile of an Average American Millionaire

Written by: Dan Lacy

Article Overview: Bullet points from the book "The Millionaire Next Door" by Thomas J. Stanley.

Demographic Profile of an Average American Millionaire

General Information

• The average age is 57. Only 10% are under 40.
• Grew up in middle or working class families. (80% are first-generation millionaires).
• Attended some college (15% dropped out by 12^th grade).
• Approximately 60% are men, 40% are women.
• Drives an older American car (60%).
• Dresses moderately and conservatively.

Home Life

• Over 80% are married, many to their high school or college sweetheart. Small families.
• Two grown children is average.
• About half of America's millionaires live in working or middle class neighborhoods. The rest live in nicer neighborhoods.
• Both husband and wife often work. The wealthier they are, the less likely the wife is working.

Business

• Millionaires are paid for performance. They are generally self-employed (only 16% work for someone else).
• The gross revenues of most of these companies are between $50,000 and $10 million a year.
• Average family income is $130,000, but can range from $30,00 to over $1 million. They may have only one part-time employee or provide jobs for up to 100 people. It depends a lot on the nature of the business.
• There are only three ways that business owners can get rich in America:
• a. Carve out a narrow market niche and charge premium prices for their product or services.
• b. Develop a unique application of a mundane process or product that has a broad market.
• c. Superior management that can squeeze a profit from any market.

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Article Tags: 1 million, 10 million, american car, broad market, business owners, class families, college sweetheart, gross revenues, husband and wife, li li, market niche, middle class neighborhoods, millionaires, nature of the business, part time, premium prices, superior management, three ways, time employee, ul



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