Heidi Barley’s family paid for groceries with food stamps when she was a child. She dropped out of college because she couldn’t afford tuition. But this summer, the 41-year-old became a millionaire.
An increasing number of Americans now boast a seven-figure net worth. Net worth is the value of a person’s money and assets (such as a home or land) minus any debts. Thirty years ago, 1.6 million Americans had a net worth of $1 million or more. Last year, Swiss bank UBS put the number at 23.8 million in the United States.
Three factors play big roles in this increase:
- Inflation means that a million dollars is worth less today. Prices and wages have gone up. It takes twice as much cash to match the buying power of 30 years ago. It takes about $2.1 million today to equal the purchasing value of $1 million in 1995.
- Home prices soared in the last few decades. Higher home values can bump owners over the millionaire net worth mark quicker.
- Online platforms like Fidelity and Vanguard made it easier for the average person to invest in the stock market. Consistent investors have been able to grow their money.
So is it safe to say a million bucks just isn’t what it used to be?
“Millionaire used to sound like Rich Uncle Pennybags,” says wealth manager Michael Ashley Schulman. Thanks to inflation, it’s no longer a “pass to palatial estates and caviar.” Most millionaires are “financially secure but two zeros short of private-jet territory.”
Finance professor Kenneth Carow says most millionaires own stocks and a home and live below their means. They teach their children financial responsibility.
Wise financial choices often make our lives easier. But like any earthly treasure, we can’t place our hope in money. (Matthew 6:19) God is our ultimate security. (Hebrews 13:5)
Like many millionaires, much of Barley’s wealth is in long-term investments and her home, not easy-to-access cash. She and her family still live in a modest Orlando, Florida, house. She saves half her paycheck and lines trash cans with grocery bags.
Barley was working as a journalist when a colleague convinced her to invest in a retirement account. Ever since, she’s saved whatever she could. Her investments dipped at first during the Great Recession (2007-2009) but eventually started growing.
Last month, she checked account balances and realized she had reached a milestone.
“Did you know that we’re millionaires?” she asked her husband.
“Good job, honey,” he replied, unfazed.
Why? Handling money wisely and even growing wealth can be a good thing. But God, not money, is our real security.
Recommended Reading: For more about millionaires, read The Toothpaste Millionaire by Jean Merrill.
