Careers That Make The Most Millionaires
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- čas přidán 29. 12. 2022
- Are there careers that lead to more millionaires than others? Well, yes, according to @TheRamseyShow who conducted the largest study on millionaires ever done?
What field do you work in?
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#millionaire
I'm an electrical engineer. I'm 38, I almost reached one million in net worth last year but the recession took its toll. I'm investing every penny that I can so that once the market comes back up I can reach the millionaire status. My FI number is 2.5M. This is not a household net worth as I am single.
I was in your same spot about 20 years ago. I think you will make it. I did and very very glad I took that path,
Plastics Engineers are the athletes and the eye candy of the Engineering profession. We're known more for our fashion sense than our math skills. Definetly more ornamental than functional.
You got this!
My boss became a multi-millionaire during the 2008 recession. He bought real estate during the housing recession. Recessions are the green light to buy while it is On Sale.
Excellent way to get a jump on it. I hit it at 43 so you are way ahead of the game.
Career engineer. Been at the top of engineering career path for the past 15 years. And my secret to saving.... I just don't seem to go out enough, or hang out with friends. So I have no need for nice clothes, nice restaurant meals.... Saved 80% of my after tax salary without even thinking. After my 1st million, I developed some expensive habits... like boat ownership, new cars every 3 to 5 years, 1st class travels... and still saved another million at 50% savings rate. The only thing I do with cash is putting it in CDs. Could have been richer, I guess ... but I am happy with where I am at.
Happy with where your at is the most important!
Engineer, spouse was a nurse.
Income does matter, ours was higher than median, but only after we I finally finished my education.
Out net worth is because of consistent investment.
I've owned a financial planning company for 12 years and am someday going to write a book about what I've learned. One of the things I will write about is how income does not determine retirement viability nearly as much as spending. Some of my better clients make literally 1/5 of what other clients make who aren't saving as much. You really don't need a $1,100/mo car lease and then tell me you can't afford to save money.
Just like the easiest way to lose weight is to reduce calorie consumption vs exercising more. After all, a calorie unconsumed is a calorie a calorie earned (?!)
Oh…the stories you must have!!!
OMG I just had a relative tell me she just leased the same SUV we have because she "needed" one.. Yeah we bought ours for cash and didn't even notice the tiny dent on our savings.. I didn't tell her that of course.
@@SteveRyder Interesting analogy! I hadn't thought of the similarities of financial health and physical health, but there are many. Just like the fad diet or surgery might get you "there" quickly, so may the risky investment. But in the long run, consistency and complete lifestyle (mindset) changes seem to be less volatile.
Good points Erin! 🙌 Scientist Rod here. 54. Married, no kids. $1.3M (home excluded) with 11 years until retirement. We certainly don’t consider ourselves wealthy. Still sportin’ a 2007 Prius! 😂
I’m still driving a 2008! And it was my first car 🚗
I’m a high school drop out and worked construction ( Electrician ) my entire life. I am 56 now and have net worth of 14million.
Wow
14 or 1.4?
@@clancymufning Fourteen
@@truth6851 how? no way.. crypto?
I do have some crypto but it hasn’t made me any money yet, my story is quite involved , but the cliff notes are that I went into business for myself 14 years ago and have built it up to 185 employees from just one (me)
I retired from the Navy as a Senior Chief Petty Officer after 26.5 years of active duty. I used to tell my sailors that I could buy whatever I want. I also said to them that whatever I wanted was usually no more than $40.00, but maybe more realistic to $20.00.
Thank you for your service!
Thank you for Your Service!
Thanks for the video! Read Millionaire Next-door and Your Money or Your Life 25 years ago and both contributed immensely to shaping my mindset and discipline. After 30 years in the workforce, have earned 630K (taxable), my highest years earnings so far were $47,500 , and net worth is 800-900K. I work in the construction trades.
Two good books. YMOYL is the one that really opened up my mind to the possibilities. It got me to early retirement 17 years ago at age 42. I think the most I ever made in a year was around 62k and that was only in the last couple of years as my career was starting to take off. For me it wasn't so much about how much I made but more about how much I spent. For most of us our income is finite but our spending potential is limitless.
Those books are fantastic - read them early and they can absolutely change your life! Congrats on all your hard work!
this is amazing to read. May I ask, what would you say was the biggest reason for your success in building up such a retirement fund?
@@chimairoegbu2263 Thank you for asking. My biggest reason has probably been my willingness to choose the path that I believe is best for me, and not be influenced by what others are doing. Though I don't believe one or two things could have gotten me here alone, as it has been a complete commitment in all aspects of my life. Slow and steady for the most part, though I have made mistakes. If I were to do it over again, I would have just gone completely with total market fund stocks and been more disciplined saving/investing in my teens.
@@johns7002 I agree! Also, I try to look at the cost of each dollar I could spend today on a item, not as the actual cost of the item, but as the loss of opportunity to earn compounded interest over time because I spent it today.
You're killing it, Erin! Great stuff. I love the results of the Ramsey study and the Millionaire Next Door. The message is so encouraging for the average person in good normal jobs. BTW, I'm a type of teacher, a college professor. My starting salary when I started full-time in 2002 was $38k. It's gone up over the years but I started by maxing out my 403(b) and getting that awesome 1-for-1 10% match. Gotta start early!
Absolutely, starting early is key!
I totally agree. I started as assistant professor, with my doctorate in hand, in 1974, at a salary of $13,000!
My uncle was a carpenter for 40+ years. Worked hard, saved and lived plain. At the time he passed, he was worth almost 4M. He was raised to be a saver and he did it extraordinarily well.
I am an Accountant. I do work in corporate accounting.
Erin, I qualify in two of the categories. I'm a retired Navy Chief Petty Officer who took advantage of both the VA and Navy in-service educational programs to complete an engineering degree and an MBA prior to retiring after 20 years. I then worked as an aerospace engineer for 17 years and made over 100k in the last 5 years before also retiring in this field. I've now been fully retired for 18 years and would never have done so in the first place at 58 had I not been debt free and had I not felt that I had accumulated sufficient retirement pay, IRA incomes, dividends and interest incomes to ensure that this income would be sufficient to guarantee I would always have greater income than my expenses for my (and my wife's) lifetime. I was fortunate enough to work for a large aerospace company who supported deferred compensation for highly paid employees and I was able to establish accounts for after retirement distributions by contributing the maximum of 50% of my salary in each of the last 5 years to this program. I not only receive a retirement from this company but I elected to accept the deferred compensation over the first 7 years of retirement. My wife worked and was well compensated and also receives retirement pay . We have managed to accumulate several rental properties in addition to accumulating a large amount of investments in stocks, bonds , annuities and savings. It simply cannot be stressed highly enough (as you mention frequently) that the power to accumulate assets lies directly in not accumulating debt. At times we had to borrow money to finance an investment opportunity but we always made sure to liquidate the debt within a very short period of time. Usually, we managed to invest using only cash. We are in the category of 'millionaires' who do not really have a large income, but the kind who have always made certain to provide a large percentage of income to savings and investments. All of which could not have been accomplished without maximum management of debt along the way. Keep up the good work and the keep providing inspiration to all.
I thought your point about how engineers, accountants, teachers, and military service members are likely planners and disposed to the "long game" that is wealth-building a fresh take on the Ramsay Millionaires data. (Engineers and accountants are also by definition highly numerate, which can certainly help.) Demonstrating that anyone with a reasonable annual income, the ability to defer gratification and avoid class and cultural pressures to spend and keep up, and this more intentional approach to life and finance, can succeed goes a long way to demystifying money. Thanks for your part in bringing data and clarity to all of us finding our way in a capitalist world.
Yippee for Engineers! But anyone can do it. Start saving early, pay yourself first (max out retirement savings every year consistently), live within your means and minimize debt. Over time compounding growth will indeed make you wealthy. I got my engineering degree and started saving for retirement in 1988. I am now 59 and will retire in 2023 with a net worth of $3.5M.
👏👏 yes, solid advice! And congrats, great discipline
Yup Mechanical engineer here. Only cracked 6 figure income in the last 3 years (although I had some rental income as well). I retired 9 years ago at just over $1M (Plus about $0.5M paid off house). Just before this year's pullback our NW was a little over $4M... I went back to work this year at an annual salary of $212K.. Why? well because the job was fun, short term and if they didn't pay me that much I simply wasn't going to do it..:). I worked 10 months and it was a blast. So I retired again and bought some spendy machine tools for retirement project fun.
I am a dentist, I am 40 years old and my net worth is over 4 million. I can for sure see exactly what you are talking about, people who make a bunch of money and then spend it and work themselves to the grave because their income is so high but their expenses are also obscenely high. I am living frugally and now work two days a week, soon to be less and spend the rest of the time just enjoying life gardening and doing inexpensive hobbies
Engineer in the auto industry. When looking at the list of millionaire making careers, one thing I noticed, is that people in these careers don't move around from job to job, and if they do change jobs, it's generally in the same community, which means they probably don't have to sell their house. I have not read these books, but one question I have, is are those suyrveyed single people? Since the home is included in the net worth, is it soley their house, or the family's house. Is that teacher using the net worth of over a million conting the family's net worth. Now, I 100% agree with these results. I recently posted on another of your videos about my 94 year old aunt passing in May, with a net worth of over $1.5 million, having never made more than $20,000 a year! Died in the same house she lived in for 72 years. Forgot, she never married, so that was done all on her own. Used to go deer hunting with my Dad in Gulliver, off Route 2 in the Upper, and we would always stop for a pastie on the way to the cabin.
The vast majority of the millionaires they interviewed were married, so many of those instances were a family home.
Mechanical Engineer here - one that actually enjoys solving tough problems versus one who's in it for the money. I think the engineering mindset of "things are explainable" certainly helps and this points to the very obvious power of compound interests and gains. I think mechanical engineers are often not paid as much as you would think since there are so many of us (~30k graduates/year), but at least it's a more stable profession than some of the other more unique degrees. I think today in most places you're likely to hit six figures after 10-20 years. In the bigger cities, that might be closer to 5 years.
I've found most (90+%) of the engineers I know locally are fairly frugal. Maybe it's because the local area is fairly depressed in terms of wages and there aren't big flashy things that you get in a big city.... so people decide not to keep up with the Jones next store and they find relatively cheap things to keep themselves entertained and happy. I've noted you just don't see many new cars or vehicles much past $40k in the two counties I travel through frequently with a combined population of about 500k. When I go to other big cities, my jaw just about hits the ground as there are 10x more expensive vehicles, even in depressed cities like Detroit.
Stumbled onto your channel through other money channels. Love the simple way you keep things. My wife and I decided when we first got married 25 years ago we wanted to have a good future. When we first started out she was a bank teller and I was a factory worker. Neither of use made a lot of money but we had a hopeful plan and we had been contributing to our 401k's. She had two children from a previous marriage and it took most our money just to live. We both been blessed with opportunities to make more money. Both our children have graduated college with very little debt that has been paid off. I now work for a local town with a skill that pays quite well and my wife is a senior financial offer at the local credit union. We are worth more than million dollars. We had that amount in our 401k till recent events. We live in a modest house which is very closed to paid for and live a modest life style and are content with that. We did make mistakes but learned from them. We look forward to having a nice retirement in a few more years. Our biggest advice to anyone is save it before you see it. Do the most you can possibly do with your 401k and live modestly.
I think engineers (at least the ones I know) are just more likely to be frugal in nature. It came out last night at the rock climbing gym that one of my climbing friends (who's had an engineering job for the past seven years) felt like he made his first splurge and finally feels middle class since he just bought his SECOND pair of wireless headphones for running. We all just laughed at him.
😂 love it
CPA, then FP&A dept. in a large corp, then FP&A exec. What turbocharged things for me was being assigned overseas for nine years and the benefits and income that came with that.
I Erin, I graduated from dental hygiene school in 1997 with a negative net worth. Now at 64 my net worth is between 2-205 million. Thanks to fidelity 401K (maxing out) and external Roths for my with and I. Thank you
That’s awesome!!! 👏👏👏
Wealthy people living in middle class neighborhoods are not necessarily trying to live below their means. They like their house and their neighbors, and they don’t want to move. It’s important to know what makes you happy, and not what you think might make you happy.
I hate my neighbors, but it's an optimal location whenever we decide to sell our home.😇
Love your presentation style, Erin - it's like talking to a friend over coffee. 👏👏
I'm none of the top careers listed, but I started early and enjoyed the "magic" of compounding. Oh, and I don't spend money on things I don't need to impress people I don't know.😊
Happy New Year!🎉
Thanks Scott!! ☕️ wonderful advice! Happy New Year 🎈
So true. We are those people. Engineer and teacher. We just saved and invested over 20+ years and voila ! Net worth over 1 mill and still growing. Going to retire early.
Way too hard to believe. According to the Bureau of Labor Statistics, there are about 2,000,000 engineers in the US, and 3.7 million teachers. By contrast, there are about 6,500 anesthesiologists. I’d bet the farm that the percentage of anesthesiologists who are millionaires is orders of magnitude higher than the percentage of teachers or engineers who are millionaires.
very good point!
@@evasanz3466 I’ve been listening to Dave Ramsey for 5 years. While I have heard many physicians do their debt free screams, I can’t ever recall an anesthesiologist, orthopedic surgeon or other medical specialist call him so drowning in debt, they want to declare bankruptcy.
There is plenty of data out there demonstrating the overall wealth of physicians. A 2021 survey of medical professionals found 56% with a net wealth over $1,000,000 dollars. And that survey included interns and residents, who are years away from their peak earning years.
Valid point, but I believe the lesson here is that you don't have to be a doctor, or in other professions that people assume are the "millionaire class" to be a millionaire.
@@evasanz3466 Let's also not forget that a doctor, after their education, doesn't start earning a salary untill they are nearly 30 years old, and, in most cases, is loaded with debt. Then, if they have their own business, insurance premiums are through the roof.
The top five list made me smile as I am a teacher married to a software engineer and we became millionaires in our late thirties/early forties because of our ability to develop and follow a plan and avoid lifestyle creep. We accomplished this while having six children and with me stopping work years ago to raise our kids! It can be done!
Ok, that’s incredible! 👏👏
Six kids and you were millionaires in late 30s/early 40s?!?! Please tell more. Did you have an amazing investment? Does one of you make over $100K/year?
Where’s the outtakes!? Lol . Thanks for another great video
Chemical engineer here! Not a millionaire yet though
Fantastic video Erin. Well done..
Hi Erin. Another fantastic video. Just wanted to drop you a quick note to let you know how much I enjoy and value your videos. I stumbled upon one of your videos a couple of months ago and think I have binge watched most of your others since that time. You consistently offer extremely useful and insightful information and I really appreciate how you are willing to share your personal journey and information to highlight the points you are making. Like you, I learned the value of saving at a very young age and never got caught in the trap of materialism and serial buying. At 56, I am now two years away from retirement and am now working through how I will shift from my savings mindset to being okay with letting my money work for me versus all the years I worked for my money. As you have so correctly highlighted in many of your videos, compound interest is KING. Wishing you and your family a Happy and Healthy New Year. I look forward to your 2023 information.
Thanks so much!! 🙏 Happy New Year!!!
Hi Erin, your looking as gorgeous as you always do! Another great video! I watch Dave Ramsey daily and I love watching all of your videos! Dave’s Baby Steps are awesome and has gotten soo many people out of debt and into millionaire status. And the research you do and information you give your viewers in your videos is priceless! Thank you for all your videos in 2022 and helping people get through one of the toughest financial year’s we’ve ever had 😊 You are Amazing! And I’m looking forward to all of your videos in the new year! And I hope you have great and blessed weekend celebrating the New Year 🎉
P.S. I miss watching your outtakes. Please consider including more of them at the end of your videos. Thank you! 😊
Outtakes are decisively a highlight of every video!
she is HOT! agree
Thanks so much for the kind words Mark! 🙏 I hope you have a wonderful New Year!!! The outtakes will be making a comeback - they just won’t be in every video 😊
Great Summary, Erin!! I am petroleum/geophysical engineer for at least 45 years. I am very frugal all these years. I started with five figures annually when I started in 1978, six figures in the 80's & seven figures in the 90's for at least 33 years!! My goal is to become Andrew Carnegie in ASIA for my future plans!!! I will make it & I am confident from what I did since 1972!! I am Chinese from Hong Kong, China.
That's awesome! Good luck on your journey 😊
lol, we can't relate... not many people make 7 figures... ha ha Congrats.
Love your videos. Engineer here. My favorite part of Baby Step Millionaires is how Dave talks about how a really high percentages of millionaires KNEW they controlled their own destiny and future. I feel that is one advantage I have with an engineering mind-set. Nothing at all in this world can keep me from where I want to be, besides myself.
I agree, I think that's a huge factor - you have to know that you control you own life!
utility worker that never made 6 figures and am a milti millionaire. never travailed while raising or kids. all done through 401K
👏👏👏
Another great video Erin! A discipline, frugal engineer here, and everything you stated in the video was 100% accurate. Most people "live in the now", with no concern for the future. It can be a fine line to walk between the two, but one that must be conquered. Happy New Year!!! (PS: In case you were planning to go, the New Years Eve event at Rocky Point (originally planned for tomorrow), has been rescheduled to Sunday because of the weather. The event will be exactly the same, and the food truck event will begin at 3PM and fireworks at 6.)
I had no idea they had an event, thanks for letting me know! We are definitely going to go know that we know about it. Let me know if your going, we could all say hi 👋
@@ErinTalksMoney - my wife and I will be at the arch for 3:30. It would be great to say hi.
My hubby and I will be there 😊
Erin, good information. Surprised I did not see the Computer Industry mentioned (a degree is not always necessary). Also sales and nursing (registered nurses, managers, etc) are highly paid field. Those are the fields I recommend young people consider. I also recommend they purchase homes ASAP for the long term gains.
Great fields!!
Thank you Erin
Thanks for watching Benjamin!
It’s very insightful, what was true 27 years ago (Millionaire next door) is the same today. I have seen many high earner folks over my lifetime who’s spending habits seemed to raise faster than their payroll increases.
Great video, make sure you try Lheto’s Pasties on US-2 outside St. Ignace; the best and they are a U.S. Coast Guard Academy family.
Excellent information. Certainly not what most people in our society who be led to believe.
Let's hear it for the Accountants, Mr. CPA and Mrs. CPA !!! in Public, Corp and Non-profit positions Great points. If you can fight off lifestyle creep as income grows, it's a game changer....
Another great video Erin. With my accounting degree, I spent 10 years with small businesses and then went on to manufacturing and was Controller for the last 25 or so years. My mantra has been "You get what you measure." I managed to retire with double my original goal.
That’s awesome!! 👏👏
I think part of the reason teachers do well it's that it's easier for them to be frugal, it's almost socially expected.
If home value is included, then I would think most 'middle class' are 'millionaires'.
How do you figure that?
I'm a CPA and reached 6 figures 2 and half years into my career by switching companies. I also work fully remote and live in Texas. I get around 3-5 messages from recruiters on LinkedIn weekly. Great career and pay I'll admit not the funnest tho but I have fun outside of work.
Nice summary of all this great info. I have a finance degree and worked for the federal reserve bank. I was essentially a bank examiner that worked my way up to AVP over bank supervision. While i made good money and saved and invested i also spent quite a bit too particularly on my kids activities and all of their college expenses. In my opinion you can do both live for today and still save for tomorrow I was able to take early retirement at 51. For me starting early (investing) was key but I didn’t want to live to frugally either so we lived an expensive lifestyle too.
Was it hard retiring early at 51
That’s the best of both worlds - save for the future and live for today. And I think it’s important to know when to draw the line of frugality, I’m glad you had a good balance 😊 happy retirement!!
No, not really. It was a goal of mine from the time that I was 22 years old.
Great video, Erin! Here’s to more channel growth in 2023.
Do you have any annual reflection or goal setting routines?
My personal goal for next year: get featured on Open Money 💵
I will have to do a show on that 😊 PS - I would happily feature you on Open Money, just have to send me an email erintalksmoney@gmail.com
I am sending everyone to your channel
Thanks Darrell! 🙏
Erin, I listen to you a lot, and the military service is what set this apart for me. I’m 46 and retired from the military (retired 5 years ago), make approx $36k a year from retirement and have Tricare for life- $600 a year for family coverage, which will be HUGE come retirement time part 2. I also contribute to SBP so if I die, my wife will continue to get 55% of my retirement for her life. I’m curious as to how that (retirement) tabulates into your net worth?
I’ve only been working full-time since June 2021, and there’s been crazy inflation, so my standard of living isn’t really changing yet.
I'm a rookie Mechanical/Aerospace engineer. I do live in a high cost of living area, so keep that in mind, but I will end my first year in the low-90k range. Most of my more experienced peers earn above 6-figures so there's certainly some potential there. Obviously, not a millionaire yet, but it's something I hope to achieve one day. I utilize my 401k, and I have started maxxing out a Roth IRA (plus a few other smaller stock-based investments), so I figure its more a matter of time, just as long as I remain consistent!
I think you said it best - it’s n just a matter or time. You are well on your way
I once was an attorney, but gave up my license a few years ago. I now work for and am part owner of two companies I helped form and that comprise 90% of my net worth. Strange career path, but I am much happier doing what I do now. Not quite to 7 figures, but very close.
Most important to be happy! I’m so glad you enjoy what you are doing now
A million ain't what it used to be
I wish this video was in every high school counselors office. Not only to guide students to a workable job, but also to show what they can be looking forward to with planning and execution. Great job.
🙏
Im in education. This stuff IS in schools. I teach math. Every WEEK we have word problems about making a lot of money with compound interest, dividends, stock market ration, etc.... nearly every unit has an example about becoming rich using math, borrowing money, interest, dividends, you name it..
The reality is that math is boring and the kids dont pay attention. I've seen it taught for YEARS - private schools, public schools, rich school, poor schools, inner city schools...it starts with the "interest" unit and with 'fractions."
Kids just dont care. Math isnt cool. Math takes too much time. When people say "they should teach this is in school....they must have missed it in the 4th grade, and 5th grade, 6th, 7th, 8th, 9th, 10th, 11th, oh....and 12th.
Absolutely true. My wife is going to love this video! Looking forward to 2023.
Happy New Year Bryan!!!
My wife and I are on our way. We put in 15% of our money for our retirement plans not counting an additional 4% that our employer puts in. I have worked for the same company for 26 years and have been putting money into my account for that period of time. My wife has been here since 2000 and has done the same thing. Our house is on the way to being paid off and the value is worth a lot more than we paid. I believe that if we can do it that anyone can.
Engineer - Millionaire via frugal saving and conservative investing for 17 years.
I work as a registered nurse. I see exactly why they're not in the top 10. Many are ridiculous with their spending. I drive a 2008 Toyota Prius. I rarely spend on anything outside of my coffee. Other registered nurses I met normally lease cars and overspend on homes.
Power plant Electrician 33yrs. Final day of vacation today. Jan.1 retire as multi millionaire. 58 yrs old. Like your videos.
This study has great insight but can lead to some misleading conclusions.
Yes more accountants are millionaires than Doctors or people in private equity. However that doesn’t mean that accountants are more likely to become millionaires.
This is because there are a orders of magnitudes more accountants and engineers than people in private equity.
Some of these professions actually do make a lot if someone has a college degree and is truly in the field. (As opposed to a night auditor at a hotel calling themselves an ‘accountant’). Teachers and military also have significant benefits beyond basic pay.
There is still value to show that you can become a millionaire with obtainable jobs and good habits. But we should be careful with conclusions.
A fellow Michigander.. Wondered about that accent - to us lowlanders sounds too much like Wisconsin lol. IT for both me and my wife. Been saving 30%+ of our income for years. Wish I was smart enough to start that sooner, but still worked out fine. No inheritance for either of us. Middle/lower middle class background. Lifestyle creep is a thing, but I fight it. Biggest hurdle was it was impossible to get a place near work without spending a fortune, but we'll get that returned when we sell it and retire to somewhere cheaper. Maybe the UP ;)
Great video! I'm in the middle, but not middle class. When I say middle I mean I do fly FC and only stay in Hilton or Marriott hotels. However, that’s because I have credit cards so I earn more 🤣 I do drive a luxury car, but I don't really care about clothes. I wear Cole Haan shoes, but I get them when they're on sale. I'm not paying $150, so I wait until I can buy 3 for $150 🤣. Yet, we spent $10k on our 15 year anniversary Alaskan Cruise. It was so worth it!
My way of thinking is invest a large amount add enjoy the rest 😀
Being retired military helps out a lot, it means I'll never be without. Conversely, my wife and I both have 6 figure jobs too goo with my retirement/VA. We're ins very good position and we're grateful we made the right decisions.
I like the “invest a large amount and enjoy the rest” 🙌🙌🙌
Guess where we stay when we travel - Hilton and Marriott because Steve has those credit cards 😂 who do we fly…delta, because the cc. They have great perks!
Really goes to show anyone can do this.
Absolutely
Haaa management at a blue chip company. This is super accurate as most of my peers don’t have massive salaries. We all do well, but generally all live well below their means and have maxed 401’s for years. (6% match with a 3% kicker helps) we make money the old fashion way. We save it.
@whatappme6712 get a real job scammer. (Reported it)
Hi Erin, I recently discovered your channel and really enjoy it. I’m really impressed by your knowledge and practical advice for such a young person - you are wise beyond your years! Im finding that with other channels hosted by people in their 30s and I must say that I’m really impressed by what I’m seeing from you and your contemporaries.
I’m a 61 yo lawyer and although I have generally had a relatively high salary, I never felt wealthy because I forced myself to live within my means, with very little debt. I became obsessed with saving and investing after reading The Wealthy Barber in my early 30s. I always contributed the maximum to my RRSP account and made sure that my wife did too. I was fortunate in that i was also able to cash in some stock options in a tech company that I worked for over 20 years ago and that helped too. Have lived in the same house for nearly 30 years so never fell into the trap of trading up to more expensive homes and have been mortgage free since my mid-forties. Put a child through 9 years of university, including medical school as I believe in the investment in education and wanted my son to start his career debt free. Looking at retiring in the next couple of years with multiple millions in both a public market and private investment portfolio. Still saving but trying not to worry about it as much as I used to and love reading and watching videos about personal financial and retirement now that I’m getting close to retirement. Thanks for your excellent content! Happy New Year! 🎉
I'm a software engineer. I retired at 42. I prefer financial freedom over wage slavery.
Most of the high paying jobs you listed earlier in the video are in the medical field. It’s tough to get into med school. That is why most so called highly paid folks are not doctors.
I am an attorney - within the occupation that required more than an undergrad degree, but I guess I am glad my profession made the cut.
what is the average attorney salary in private practice? I have seen reports of 50K to 150K?
Its called living the American Dream...working hard and saving. It's alive and well for those who follow the steps of saving more than you spend. I have always lived by the following template, Give God his 10% and then pay yourself at least 10% and then live off the balance.
I am an accountant (41M) and we currently have a high six figure net worth. I expect to hit $1 million by 45 at the latest.
I was a microbiologist and retired early at 38
I think those studies are somewhat flawed. A better metric would be which professions have the highest percentage of millionaires vs the quantity of people in those professions. The absolute number of teachers is a lot higher than the absolute number of doctors, for example. But it’s MUCH easier to achieve millionaire status as a doctor than teacher.
Not necessarily... medical school is insanely expensive and if you plan on having your own practice, that has a lot of expenses and overhead including malpractice insurance. Whereas teachers, while they make substantially less, don't have the same expenses/overhead and their college is much more affordable. Many even find ways to get their master's fully or mostly paid for. Also, teachers hours and the regular time off (weekends, holidays, three months in the summer) allows for many of them to pursue secondary careers or businesses that generate more income.
@@1981lashlarue a 2021 physician wealth report showed 76% of physicians had a net worth of over $1M by age 70. I would bet that number is well over 80% in 2023.
So yes, it’s much more likely you’ll be a millionaire if you’re a doctor. However, it’s much harder to become a doctor, so there are far fewer doctors out there compared to teachers. This is the only reason they aren’t in the top 5 list.
I believe in the Ramsey study they were number six despite being far fewer in number compared to other $1M professions. The % of millionaires by profession is really the metric to measure, not absolute numbers. And, income is the single biggest factor in building wealth once you’ve had the “ah ha” moment to focus on financial freedom vs consumption and consumerism.
@@CalmerThanYouAre1 I think all the data shows that income is not the biggest factor in becoming a millionaire or securing financial freedom. Quite the opposite. How many example have we seen from people with high incomes who are broke or wallowing in debt because of lifestyle creep? The data shows that 401(k) plans and consistently contributing to them, avoiding debt, and living within one's means are the biggest contributors to achieving that, not high income.
A large percentage of millionaire's have never earned six figures in their life, so income is clearly not the reason. Income is a factor but largely financial choices and discipline is what does it.
@@1981lashlarue I think you just like to hear yourself talk. 😂
Everything you just listed is included in the “ah ha” moment I mentioned in my previous comment. Pretty obvious no amount of income will overcome not living on less than you make, not investing, not being disciplined, etc. etc.
Income is the biggest determinant once basic financially literacy and discipline has been achieved (the easy part). The hard part is developing high value skills and increasing your income so you can invest a large portion of your pay without having to force yourself into a quasi-impoverished lifestyle.
I encourage you to read Nick Magiulli’s article on this topic on his blog, “Of Dollars and Data”. The article title is, “Paychecks, Not Portfolios: Why Income is the Key to Financial Success”.
One of the best videos I have watched. ANYONE CAN DO IT WITH HARD WORK & DISCIPLINE.
Biggest thing is to pay yourself first. Once the money is set aside for savings and investing look at what’s left and decide how you want to spend it. As an example, If I decide I want a new phone I wait until I can afford to buy it, even if it takes a few months. I don’t cut into paying myself first just to get the phone now. Also, I drive a reliable car that is 24 years old, that is paid off, gets good gas mpg, and costs me $38 a month to register and insure. I see people getting new iPhones every year and leasing expensive cars and not paying themselves first and then say they can’t afford to save and invest. Blows my mind. Priorities… Love a good Pasty!
I wish the careers were done per capita instead of total numbers. Not to discount anything in the video, but I feel like it’s lopsided to some careers that are just so abundant. For instance there are millions of teachers vs thousands of Doctors.
Fair point!
Engineer..... I think it's my upbring and spending habit.. that's make the different.
nice video. I'm a net worth close to 2 mil. do not feel rich at all. software developer and just made 6 figures two years ago.... watch what you spend and invest!
I'm an engineering manager! So I am two of these careers.
Thanks for the video. I think there is a bit of a misunderstanding with this study and the Millionaire Next Door. The list of careers that create the most millionaires are far more common careers than the ultra high paying careers. Plus the US stock and real estate markets have been some of the best performing markets in the world over the past few decades. It really isn’t surprising the list of careers that create the most millionaires and it isn’t fair to conclude that these careers will be the best way to build wealth in the future. I think there are some great lessons from the Millionaire Next Door and this study but you do have to be very careful with how you interpret this data
The results of those studies are a bit shocking. I thought that people making $300K+ would almost certainly be millionaires! I'm a mechanical engineer. I'm 50 and my net worth is about $725K. I've always lived below my means and I went through a divorce when I was 29 that made a little dent. I've never made more than $100K in a single year. My Dad was an engineer too, my Mom stayed home most of the time as we were growing up. They were poor when I was very young, but they are millionaires now. The lifestyle they had when they were poor carried over. The only problem is that they don't spend money on themselves now that they have loads of money. (The exception being travel where they have been on several trips that cost over $10K) There are a couple mobile games (phone games) that I played for a long time. When I finally quit I had huge amounts of in-game currency that I never spent. I have a feeling that I'm going to take after my parents.
Only a fellow Michigander would know what a yooper is. Gramps much have worked up in the Keweenaw mines. Doctors are the WORST financial managers, but they make the most. They think they know everything about everything...my stepdad was a Dr.
And many the docs I know m live a certain lifestyle too. That type of life isn’t as expected/normalized in other fields
I have an engineering degree, and I am a teacher. I thought it was funny that those are 2 of the top 5, and my wife and I will hit millionaire status in our early 40s, despite my wife having been a SAHM for 7 years.
I’m curious if teachers are on the list because of who they marry. This is completely anecdotal but it seems to be the case in my area that the teacher isn’t the bread winner of the family and do it for the passion and the benefits.
That’s definitely the case where I am as well.
Perhaps this and also raw numbers. CEO is on the list of high paid jobs and teacher isn't. But more teachers become millionaires. But I'm going to guess teachers outnumber CEOs 20:1 or higher. All that said, 95% of this video is gold. Do this and succeed.
I would also like to see the definition of "teacher" in that study. Professors, who are "teachers" in higher education like colleges and universities make substantially more money than an elementary or high school teacher in public or private school. I do also know some high school teachers that are probably millionaires, but almost all of them have taken advantage of the substantial amount of time off they off and pursue secondary jobs to make extra income.
You can have everything you want, as long as you can pay the price.
Manager/Engineer
Anyone interested in their finances should read "The Millionaire Next Door".
I started in insurance at 48,000/ year and now I make 750000. I've saved $107k so far in 9 years because insurance has such good benefits. I get a 9% 401k match so it's easy to save alot.
4 Notes
1. Important actions today- Preventive measures like oil change for your car.
2. Can’t go back to past - Did you prevent? Did you change oil?
3. Today is your youngest self - You changed oil so car is happy and so are you.
4. Let’s take actions today or near future - Change all other fluids that car needs at 60,000 miles interval. -.-
Mixed car maintenance to finance but you can see it’s kind of same. I do preventive measure with my car so I don’t get stuck on road. But with finance, you do NOT want get stuck on later life. It’s going to suck if I can’t buy decent birth day gifts for my grandkids.
That said, take advantage of 401k match. If your company offers it, it’s 100% return and it gives you peace of mind if something goes wrong in life. “The Red Button” that many people do not have. It’s a simple call to the provider. I had to press it in 2009 but glad it was there because if not, we would have lost our house.
It’s surprising for me the Doctors and IT professionals specially in US : on the other hand Teachers are there which is again beyond expectations : I guess to achieve the Millionaire status : mind set/ life style / habits go a long way : how to plan /strategise / live frugally save as much as one can and as early as one can and a Burning Passion: stick to for long with patience : always to spend less than one earns then invest ur savings smartly ( taking calculated risks with touch of good luck ( counts in mysterious way )…!!
I’m an ODU graduate in BS CS in Computer Science and a Software Engineer for many years…. I have reached mullti millionaire status and have a great pension but feel like I just live a middle class life… I spend on luxury items but also use coupons at mcdonalds… I wear jeans every day to work and a not tucked shirt and its very confortble….. suits dont suit me… oh and tennis shoes…
Engineer here. Being able to think systematically is what helped me. I believe math, not what others tell me. Once I saw the math for early retirement I was sold. Began FIRE investing 8 years ago and I’m close to $1 million now. My biggest concern now is rising cost of living and inflation.
well, if you think systematically as you say you do, then the should believe the math and not have concerns about rising cost of living and inflation, since you would adjust for it...would you not?🤣
Software engineer here! I'm well on my way to being a millionaire, especially since I stayed on a holiday inn express last night 😅
😂 Free breakfast!! Happy New Year!!
I work as an accountant for 3 years and my net worth is north of $200k. I hope he be a millionaire by 32.
Did the Ramsey study use random sampling to select a subset of all millionaires in the U.S.? If not, the results might be biased.
Update: I just looked at their website and based on what they say there, I would take the results with a grain of salt. Sure, the sample size is large, but they don't provide their methods and the study is not in a peer reviewed scientific journal. If the participants are people who follow Ramsey, then it's a biased study.
Well . . . we know that being a millionaire isn’t quite what it used to be. I was an engineer that made a six figure salary for my last decade at work in the government sector. I readily admit that I am not a very good investor though I gave it a try for years. I achieved middling returns then lost a chunk of money in the 2008 stock market crash. I am basically a good saver and good at living below my means. My lucky financial circumstance is that I have a great pension. I retired 12 years ago at 55 years old and never passed that millionaire goal line.
Saving and living below your means are gold standard habits 👏
Hello Erin great videos! Wife and I are Air Force Financial management retirees. Started Dave Ramsey’s plan about 4 years ago which changed our minds to get out of debt fast. We still work as govt budget analysts and are multi millionaires in our 40s. With hard work, focus, and faith in Jesus, He continues to bless us all.
Congrats on all your hard work! 👏👏
It's NOT the amount of money, It's how much u keep...
This is a great and optimistic topic and video, however, I also think it’s critical that everyone in your generation and younger understands what is happening with wealth distribution and the trends since around the 1980s. Saving and investing is great and I believe important on an individual level, but increasing wealth inequality, historically, does not end well.
Forgot to say, Happy New Year and I hope you have wild success in 2023!!
I think you’re conflating 2 concepts - 1 out of all job titles , which make the most income and 2 out of all millionaires, what job descriptions are most common. I’d bet that out of all doctors ( the highest paid salaries ) a higher percentage of them are millionaires than the 5 listed ( ie accountants engineer etc) . It’s just that there are way more of those 5 careers than doctors so they will still end up having a higher fraction of millionaires ( but still not proportional)
Fair point!
and/or the high income career categories just don't care enough about Ramsey to be a part of the Ramsey Solutions targeted focus group. It's also interesting that the focus group is weighted toward hard to nearly impossible to fire people, like teachers/professors with tenure, government employees, and union employees. Also, it's interesting that the focus group is weighted on career fields which have tuition reimbursement/wipe out/paid for programs.
Agree, HOWEVER all of the main points are very very valid. Many people just say it's not doable to build wealth. It is. It's just not doable if you lease a new luxury car every 3 years.