The 5 Types of Millionaires That Exist
Did you know that there are 5 types of millionaires in the world ? Classifications are part of every day and today we want to talk to you about those that exist in the world regarding the wealthiest people.
For some, classifications are a way to keep a list in order, for others it is a way to compare.
Depending on the topic in question there are always implications for qualifying to the next phase.
This happens in competitions, in a classroom where the person who qualifies goes on to represent those in his grade, from there to those in his school and so on in his district, province and even country.
Other categorizations do not serve to advance, but to divide
For example, someone who is over 18 years old is an adult and someone who is less than 216 months old is a minor. There is no number of years, from a legal point of view, where a person becomes “more of legal age.”
Now, organizing characteristics of a metric from lowest to highest is one of the curiosities that most draws our attention.
Knowing who (person) or what (thing) is more or less than another is something that excites us very much.
Who is the fastest , who is the biggest, who is the wealthiest.
And just as category A, B and C exists in sports, it also exists in the classification of world wealth.
There are the best and worst of each rank, but always remembering that the worst of the next scale has a better performance than the best of the previous level.
So let's explore 5 types of millionaires that exist in the world
1. Millionaire
The millionaire is a person who has a million dollars of net worth . In other words, his assets minus his liabilities equal one million dollars .
Currently there are 50 million people in the world who consider themselves millionaires and accumulate 44% of the world's wealth. It is the same amount of population that Colombia has.
2. Deca millionaire
Deca millionaire is a term used for an individual with a net worth of more than ten times one million dollars . There are about 2,500,000 wealthy people in the world, double digits in millions.
3. Ultra millionaire
They are those who have a fortune greater than 30 million dollars. In total there are about 500 thousand throughout the planet.
And they are the holders of approximately 13% of the total wealth of the earth.
4. Billionaire
The latest update tells us that there are 2,755 billionaires in the world. This title is received by subjects with wealth greater than one billion dollars.
5. Centi billionaire
A person with a fortune of $100 billion or more is known as a centi-billionaire . The most interesting thing is that most of these capitalists have made their fortune from scratch.
This select group is made up of 9 magnates.
How did these people achieve wealth
It is important to tell you that 9 out of 10 people who are in any of the aforementioned categories did not receive any inheritance and it also took them decades, some of them several, to reach that level of wealth and opulence that they enjoy.
You already know the 5 types of millionaires that exist in the world! And all, without exception, have benefited from the long term and compound interest.
We live in a time where the life expectancy of the bottom 1% of men is 72 years and 79 years for women. On the other hand, the life expectancy range of the top 1% for men is 82 years and for women it is 89 years.
So we can conclude that most people will live beyond the age of 7 decades.
Combining both concepts that we have explored in this post, level of wealth and life expectancy, we can observe several very revealing exercises that show that not only a few favored by chance or a handful of unicorns have the ability to accumulate assets that are unthinkable and unattainable for many. .
How can I become part of one of the 5 types of millionaires that exist
A person who invests $2,100 per month in an investment tool that yields an average of 10% per year such as the S&P 500 index fund for 50 years manages to create a capital of $30,000,000, which places them in the ultra-millionaire category .
If that person does it for only 17 years, he or she will create an asset of $1,000,000 that will allow him or her to be part of the group of millionaires from then on .
Thinking that this individual finds another investment tool with an average annual return of 20%, as for example Warren Buffett and all his Berkshire Hathaway investors did for 50 years, from 1965 to 2015, to invest his $2,100 per month will generate a fortune of $1,247,000,000 that will open the doors to belonging to the select club of billionaires .
In all cases, your only effort after making the decision of which investment tool to use is the commitment to yourself in the long term to religiously contribute the agreed amount each month. Without the need to found a business or discover a cure for any illness.
Finally, if it were the case that the amount to be allocated is $210 per month, one tenth of the previous years, the result will also be 10% of the amounts $3,000,000 and $124,700,000 over 50 years. The result will be a millionaire or ultra millionaire respectively.
What are the first steps to investing and achieving that level of wealth
By educating yourself you are committing and aligning your intentions with your actions to be a millionaire person .
The right education will show you an “easy” path, a proven recipe, and will shorten the learning curve, avoiding the most common mistakes that could hinder your path to wealth or make it very slow.
You want to avoid that, right?
Then we invite you to our Financultura Masterkit financial freedom program , which will guide you along the way and give you the proven steps you can follow to achieve your financial goals.
We created Masterkit because we know that with the same recipe that hundreds of students have followed, and that you can also follow, you will achieve great things in your life.
Deciphering the recipe inspired so that more people could also live the life of their dreams, in it we share more than 10 years of experience and our investment in the best personal finance education worldwide, more than 10 years of tropicalizing, testing and applying All the advice that those mentors gave us and others that we developed and that can only be learned by “doing”, is not something we read in a book.
