Friday, April 16, 2021

Millionaire Choices

Getting Personal, it’s your spending…

In our research, we found that those who achieve millionaire status report that they save about 20 percent of their income annually. Unfortunately, others spend all of their income or more!

The Board of Governors of the Federal Reserve System reports that of all households, 41 percent of the population spends less than their income, thus have funds available for saving or investing. Also, 37 percent of households have spending equal to income, and 20 percent say that spending is greater than their income.

Clearly, higher income levels help facilitate wealth accrual but do not guarantee it, since 15 percent of those with incomes of over $100,000 spend more than they earn. Those in this category covered their shortfalls by drawing from savings or investments (44 percent) and borrowing, including use of credit cards (43 percent). Other options were to get help from others, part-time work, and negotiating payments. Further, 29 percent spend all of their earnings.

According to the Federal Reserve there is some good and bad news in regard to family finances. As a result of improvements in economic activity and rising house and corporate equity values, there have been increases in average and median family net worth between 2013 and 2016. Between 2013 and 2016, median family income increased 10 percent while mean family income grew 14 percent. In 2016, families at the high end of income and wealth distributions had large gains in mean and median net worth.

Retirement plan participation and retirement account asset values rose between 2013 and 2016 for families across the income distribution, with the largest proportional increases in participation occurring among families in the bottom half of the income distribution.

Families at the low end of income and wealth distribution had large gains in mean and median net worth after past declines between 2010 and 2013.

What is your income, and is there enough to allocate for saving or investing? We strongly encourage you to analyze your financial situation in the context of a SWOT (Strengths, Weaknesses, Opportunities, and Threats) assessment.

A comprehensive guidance form for your personal SWOT analysis is provided in our book, “Richer Than A Millionaire ~ A Pathway to True Prosperity.”

New York Times bestselling author William D. Danko and Richard J. Van Ness, wrote the research-based book, “Richer Than A Millionaire ~ A Pathway to True Prosperity,” which shows the way to wealth and happiness through embracing traditional values. Washington Post’s Michelle Singletary selected this book as, The Color of Money Book of the Month. Content appearing in this article is based on excerpts from the authors’ book. The book is available at

Visit the authors’ website,


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