Moneywise

Wed, Jun 25, 2025, 6:13 AM7 min read

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It’s easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a lifetime of earning a six-figure salary?

But data gathered by Dave Ramsey’s team suggests the link between wealth and income may be weaker than most assume.

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Only 31% of American millionaires earned an average annual income of $100,000 over the course of their careers, according to The National Study of Millionaires conducted by Ramsey Solutions. Perhaps even more surprising is that one-third of these millionaires never reached that six-figure income milestone during their careers.

It’s completely realistic to reach a seven-figure net worth without earning a six-figure salary. However, this modest path to millionaire status does require more effort and discipline.

The key to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaires club because they let lifestyle inflation consume them.

In fact, 36% of Americans earning more than $200,000 a year said they were living paycheck to paycheck, according to a PYMNTS survey from 2024.

By comparison, someone earning a five-figure income can become a millionaire with both disciplined saving and smart investing. Building real wealth on a mid-level income means starting early, investing wisely and consistently finding creative ways to reduce monthly expenses, like cutting insurance costs.

U.S. homeowners' insurers have hiked premium rates by double digits over the past two years. If you’re not paying attention, that could be a major hit to your saving power.

Shopping around is one of the best ways to find better rates, but calling individual providers takes time and effort that many working people just don’t have.

OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers all in one place.

OfficialHomeInsurance.com can make it easy to find the coverage you need at a price that could fit your budget.