Millionaires in USA

You will be surprised by knowing that, only 3.5% of the households in America (USA) are millionaires. There are total 100 million households in America and out of that only 3.5 million house holds are having million dollar net worth.

And the staggering fact is that, these 3.5% households own Total more than 50% of the Wealth of USA.

Now let us discuss about the average income of a millionaire household in America. The Total annualized household realized (taxable) income of an average millionaire household is approx. US $ 1,30,000.

And out of these 3.5 million millionaire households, 8% have income between US $ 5,00,000 to US $ 9,99,999. and 5% have income in excess of $ 1 Million or more. Now, this is a very eye opening statistics. If only 3.5 million households in USA are rich and only 8% of them have yearly income above US $ 5,00,000 than how come literally more than 50% households in USA afford luxurious & high status items such as expensive cars, watches, clothes & homes?

Well, because most of the people in USA, in fact in whole of our world are fueling their luxurious lifestyles with a debt only. They are leveraging their lifestyle. When you leverage (Leverage means borrowed money) something, it will magnify. You can leverage anything such as a Business Growth, Your Investments, Your Life style…etc….

Leverage means to use borrowed money to fuel growth of a business, magnify profit (or loss) of an Investment or to fuel the luxurious life style.

According to Warren Buffet, The legendary investor, Leverage is not at all a good thing. However, whenever at the end of the leverage, Asset develops, it is acceptable to take a leverage. Say for Example, taking leverage for a Business expansion because if a business will expand, it will generate more income and thus you can pay that leveraged (Borrowed) money.

But Leveraging your lifestyle is a worst thing. and most of the Americans are doing this only. And that’s why they only look cool and rich but in reality they are not. If you fuel your high status lifestyle with borrowed money, it is a worst thing….!!!!