Samuel OskysThe average annual income of millionaires around the world is about €220,000 and the reason they earn such high income is to keep growing their career. This takes a lot of time, effort and energy and as their careers grow, so does their skillset, so does their pocket depth.
Millionaire Incomes, Then and Now
It’s not as simple as it may sound. Some individuals may believe that millionaires have earned a high income most of their lives but making such assumptions is incorrect. It is a fact that most millionaires started with a very modest job and incomes and it’s improved over time.
Commonly, millionaires started off with an annual salary of about €12,000 and slowly advanced to a better paying job of about €17,000. They were smart enough to save money and perhaps invest in property and real estate as most usually do.
Staying at the same company is also important if there is potential for a better paycheque. Most millionaires in their 50’s have stayed with the same company for more than 25 years and have worked up the ladder.
On a side note, most millionaires have high incomes because their spouses have high paid work too. So €220,000 annually won’t seem extreme if both members of the family earn more than €100K a year.
Millionaire Challenges of Life
In the beginning, things may start off fine working at a modest job, but as your job position and salary improves, you will, of course, take on more responsibilities which require more time, effort and energy. This is taking into consideration only one person!
What’s to be said about millionaires who have a wife, a husband or even children? It gets harder because the work-life balance becomes a challenge.
Most wealthy individuals usually need to readjust their work schedule or other commitments to make time for the family once they reach economic security. But ultimately, it starts out very hard and nerve breaking, in time things begin to improve and become bearable and in the end, you find more time to spend with the family and enjoy the amazing moments you missed for so long.
The general idea though is that making higher than average income entails longer than average working hours so each family needs to discover a balance throughout their life. Most millionaires today will say that if you sacrifice early in life, you will reap many gains later.
Millionaires that have more than one form of income
Rarely will you find a millionaire on just one source of income, but if you find the millionaire who has just one form of income, it’s most likely because he’s earning more than a quarter of a million euros per year and that’s understandable.
Those HNWI who have more than one income source will most probably be involved in real estate or invested in property development or similar. It’s very common to hear of millionaires investing in property development or real estate but this is not how most of them actually became millionaires; remember this is probably their second business, their second form of income!
So the general cycle of financial wealth will be making and saving money in the beginning, then investing a portion of your money in real estate which in time will increase your income. This is how most millionaires feed their financial wealth.
Millionaires that save their income
Saving comes as no surprise because income alone is clearly not enough. Making half a million euros per year then blowing half a million euros will get you nowhere, so saving is mandatory. This is an important factor which allows future investments to happen.
As aforementioned, the average millionaire will earn €220,000 but he will save more than 60% of that a year. This is a large portion of their income being put aside for future expenses or investments.
As a millionaire, you will see that as you grow your savings, whether big or small, it will grow further in time and then so will your overall net worth.
