Average People CAN be Millionaires

We live in a society of can't when it comes to building wealth. We are told that millionaires are athletes, musicians and actors, trust fund babies and crooks. These are all lies.

The average American millionaire is a first generational millionaire, with 79 percent of them having not inherited one dime that contributed to their net worth. For more fun filled facts on millionaires in America, pick up the book Everyday Millionaires by Chris Hogan and visit the website:

Not many millionaires are athletes, musicians, actors, or trust fund babies. Some are yet certainly are not the norm. As for the crooks, I'm sure there are a few, however, let's ask Bernie Madoff how well that worked out for him!

The point to all of this is, the American Dream is alive. If you are willing to work, develop skills useful to the marketplace, live debt free, and give, save and spend in a reasonable and balanced way, the average person can become a millionaire and depending on when they started "living right" as some of my coworkers in the West Texas oilfield like to say, the average person could become a decamillionaire.

Complete garbage, right? Well, let's think about it for a minute. How much money would you have in your pocket right now if the only thing you owed a creditor was your house payment? Typically the average car payment in America is dangerously close to $500/month over 5 years. That, on the surface, is $30,000 paid for what was probably an $18,000 vehicle. Let's say we took that same $500/month payment but this time we invested in good growth stock mutual funds that return the average lifetime of the market 12% returns. At the end of 5 years, you would have paid in $30,000 however that account looks more like $42,691. Now let's pretend I was some financial genius at the age of 25 and did this from 25 to 65. Let's pretend that for 40 years, the only investment I made was $500/month in good growth stock mutual funds. That account would look a lot closer to $5,154,854. That was not a mistake. If you invest only $500/month for 40 years, you would have $5 million. Let that sink in; if you constantly finance new vehicles, you are sacrificing $5 million dollars in net worth by the time you retire.

Consumer debt kills your ability to build wealth. The vehicle was only one example of the plethora of things Americans finance everyday because we must have our stuff now. How many of you break out the credit card(s) for that new T.V. or recliner? Dining out? How many of you finance a steak dinner at 18% interest on your credit card every month? What other things do you finance that ultimately rob your ability to build wealth?

The great thing is you can change this habit if you choose to. If you do not want to be average and lose $5 million of retirement over driving cars to impress people you don't know, then get in touch with us at Financial Fit and we will help you on the path towards financial freedom.