Is It True That 90% of Millionaires Make Over $100,000 a Year?

The answer

The statement "90% of millionaires make over $100,000 a year" is false. In the Foundations in Personal Finance curriculum, this comes from Dave Ramsey's National Study of Millionaires, which surveyed more than 10,000 millionaires — one of the largest studies of its kind.

What the study actually found:

• Only about 31% of millionaires averaged $100,000 or more per year over the course of their careers.
• One-third never earned six figures in any single working year.
• The top career fields were ordinary ones — engineer, accountant, teacher, manager — not glamorous high-paying jobs.

So the idea that nearly all millionaires are high earners simply is not supported by the data. The real driver of millionaire wealth is consistent saving and investing over time, not a big paycheck.

Why the 'True' answer is wrong

The trap here is the intuitive assumption that becoming a millionaire requires a high income. That confuses income (what you earn each year) with net worth (what you own minus what you owe). They are different measurements:

• A surgeon earning $400,000 who spends nearly all of it can have a low or negative net worth.
• A teacher earning $55,000 who saves and invests steadily for 30 years can retire a millionaire.

Wealth is what you keep and grow, not what flows through your hands. High earners who overspend on cars, homes, and lifestyle can stay broke, while disciplined middle-income savers quietly accumulate wealth.

The bigger picture

How do most millionaires actually build wealth? The study points to a few repeatable behaviors:

• Consistent investing, especially in employer-sponsored retirement plans like a 401(k). About 8 in 10 built their wealth this way rather than through inheritance.
• Living below their means — spending less than they earn and avoiding consumer debt.
• Time and compound growth — steady contributions over decades, letting compound interest do the heavy lifting.
• Personal responsibility — the majority did not inherit their money; a large share received little or no inheritance.

The deeper lesson the curriculum is teaching is that wealth-building is accessible to ordinary earners. You do not need a six-figure salary; you need a plan, patience, and discipline. A modest but consistent investment habit, compounded over 20–30 years, outperforms a high income that is spent as fast as it arrives. That is why the correct answer to this exam item is False — and why the surprising truth behind it is actually encouraging for average-income households.