Why Some People Say Being a Millionaire Isn't a Big Deal

What does it mean to be a millionaire? How much money do you need to make in order to be considered wealthy? 

And why do some people say that being a millionaire isn't such an impressive accomplishment? 

This article explores these questions and more, while also debunking the myth that being rich doesn't matter. (Hint: it matters!)

Of course it is

Millionaires are the 1% of all Americans. They have more wealth than 99% of the population. The median net worth in America is $44,900. 

This means that half of Americans have less than $44,900 and half of Americans have more than $44,900. 

A millionaire is someone who has at least one million dollars in assets minus liabilities like mortgage and student loans. 

To put this into perspective, the median income for an American is $59,000.

That means if you make over about $90,000 annually and you're under 65 years old then you're making more money than 98% of all Americans.

That's because they're not financially literate enough

It's not enough to simply be wealthy. You need to be financially literate so you can keep your money and make it grow, and that takes time. 

Few of us are born with an understanding of finance, and you have to spend time learning how the world of money works in order to take full advantage of it. 

Becoming financially literate means educating yourself about everything from financial planning, budgeting, stocks, bonds, retirement planning, insurance, taxes and more. 

And even if you're naturally gifted when it comes to finances, you'll likely still need to work hard for many years before achieving millionaire status.
 

The good news is that when you do reach millionaire status, it's usually because your financial intelligence has developed over time - and this intelligence will only continue to grow as time goes on.  

So what does being a millionaire really mean?

Is being financially literate a prerequisite to become a millionaire

Financial literacy is not always taught in school and is something that can be learned throughout life. 

You don't need to be rich or have an MBA to learn how to manage your money, you just need to educate yourself about the basics. 

Becoming financially literate means understanding what assets are, what liabilities are, and how much risk you're willing to take on as well as being confident with your financial decisions. 

Knowing these things will help you make sounder decisions with your money which will eventually lead to becoming a millionaire!

Learning financial literacy can make you more wealthy than ever before

The first step to being wealthy is gaining financial literacy. Here are some ways in which you can start today:

1. Know the difference between income and net worth. Income is what you make from your work, while net worth is how much you have after accounting for all of your assets and debts. 

Most people don't understand this distinction, so if you feel lost, look it up online or ask someone who is good with money to help explain it to you.

2. Understand the difference between an asset and a liability. 

Assets are things that generate income or provide protection against risk; they're usually investments like stocks or real estate. 

Liabilities are items or obligations that cost you money and don't produce anything - like credit card debt or a mortgage. 

For example, if you have $100 in cash plus $500 worth of stocks but also owe $600 on your mortgage and $1,000 on your credit cards, then your net worth would be minus $300. 

If you only had the cash, then your net worth would be plus $700 instead.

Conclusion

In conclusion, being rich doesn't mean you're happy. Money is only one of the many factors that contribute to happiness. 

Therefore, it's not about how much money you have but about how you spend your time and what makes you happy.