Having $1 million in assets once meant you could stop worrying about money entirely and live comfortably for the rest of your life. That version of the American millionaire has quietly disappeared, replaced by a more complicated financial portrait that affects how you measure your own progress toward security.
The United States is home to the largest population of millionaires on the planet, with the number growing by more than 1,000 people every single day throughout 2024, UBS notes. Yet the purchasing power behind that title has eroded so significantly that many of these newly minted millionaires still feel financially vulnerable.
What being a millionaire means in today’s economy
The most widely accepted definition of a millionaire is someone whose net worth reaches at least $1 million, a calculation that includes homes, retirement accounts, investments, and other assets minus outstanding debts.
That definition creates a staggeringly wide range within the millionaire category itself.
All of my clients who are millionaires do not consider themselves wealthy, not by a long shot.
A household sitting on $1 million may not even have enough to retire comfortably, depending on annual spending habits and location, while a household at $10 million occupies an entirely different financial universe.
Harvard economist David Laibson told Newsweek that today’s $1 million has the same buying power as roughly $165,000 in 1975, a comparison that reframes the milestone entirely.
How many millionaires live in the United States
There were approximately 23.8 million millionaires in the United States in 2024, the largest total of any country and nearly 40% of all millionaires worldwide, UBS reported in its 2025 Global Wealth Report. That figure is nearly four times the number of millionaires in mainland China, which has the second-highest total globally.
The millionaire population grew by approximately 379,000 in a single year, which translates to more than 1,000 new millionaires crossing the threshold each day, the UBS report found.
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However, wealth distribution remains uneven across racial lines, with roughly one in five white-householder households holding seven-figure net worths, compared to about one in 20 for Black-householder households, U.S. Census Bureau data showed.
Only 36% of Americans with at least $1 million in investable assets described themselves as “wealthy,” Northwestern Mutual’s 2025 Planning & Progress Study found. “A million dollars is undoubtedly a substantial sum, but money alone does not inherently create financial confidence,” Douglas Benson Jr., founder of Benson Wealth Management, told Money.com.
Geography also plays a major role in how far millionaire status actually goes. A $1 million net worth in a lower-cost region can support a far different lifestyle than the same amount in expensive metropolitan areas like New York, San Francisco, or Los Angeles, where housing, health care, taxes, and daily living costs consume a much larger share of wealth.
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Millionaire money habits worth adopting at any income level
No two millionaires follow identical paths, but researchers and financial planners have identified recurring behaviors that separate those who build lasting wealth from those who never cross the threshold, regardless of starting income, Yahoo Finance reported.
Seven habits that millionaires commonly share
- Invest early and consistently: The power of compound interest allows investments to grow exponentially over time, meaning the earlier you begin, the less you need to set aside each month to reach seven figures, according to Fidelity.
- Reduce discretionary expenses: Cutting spending that does not add meaningful value to your life frees up cash to flow directly into investments, significantly accelerating your path to financial independence.
- Increase your income through multiple channels: If you have trimmed expenses as far as they can go, earning more through a raise negotiation, side hustle, or gig work creates additional fuel for your portfolio over the long run, Yahoo Finance reported.
- Be cautious with debt and high-interest borrowing: Millionaires tend to understand how interest charges compound against borrowers, which is why building an emergency fund and paying cash for nonessential purchases keeps more money working in their favor.
- Use tax-advantaged retirement accounts: Traditional IRAs and 401(k)s let you contribute pre-tax income, while Roth versions offer tax-free withdrawals in retirement, and both structures make each invested dollar stretch further over decades, the IRS confirmed.
- Seek professional financial guidance when needed: About 74% of millionaires work with a financial advisor, more than double the 34% rate among the general population, according to the Northwestern Mutual study.
- Think long-term and plan accordingly: Most millionaires did not reach seven figures by accident; they understand that consistent habits sustained over years and decades produce results that short-term thinking never delivers.
“$1 million is a lot of money, but the data makes one thing crystal clear: money alone doesn’t create confidence, financial advice and financial plans do,” John Roberts, chief field officer at Northwestern Mutual, stated in the study’s release.
About 79% of American millionaires described their wealth as self-made rather than inherited, the same study found, reinforcing that discipline over decades matters more than any single windfall event.
The millionaire threshold is a checkpoint rather than a finish line
Americans now believe it takes a net worth of approximately $2.3 million to be considered truly wealthy, Charles Schwab’s 2025 Modern Wealth Survey found, with even basic financial comfort requiring roughly $839,000. UBS projects more than 5 million new millionaires globally by 2029, meaning the title will become more common and less distinctive with each passing year.
The financial pressures that make today’s millionaires feel less than wealthy, from health care expenses and extended lifespans to volatile markets and housing costs, will only intensify as more households cross that threshold.
Whether you are years away from seven figures or approaching it soon, the habits and planning behind the number ultimately matter far more than the number itself.
Related: Vanguard says 30% of millionaires feel broke, but it can be fixed