What The Largest Study Of Millionaires Has to Say About Building Wealth

What The Largest Study Of Millionaires Has to Say About Building Wealth


– Alright, the time is here. The man, the myth, the legend, fellow Ramsey personality
and financial expert Chris Hogan is here. Chris, welcome. – Well thank you. – So glad you’re here. – I have been waiting on my invitation. I keep hearing about
the Rachel Cruze Show. And I thought maybe my
invitation got lost in the mail. – I don’t believe it. I f I
heard that voice be like, “Take me on your show,”
I’d be like, “Yes God, yes.” – Oh listen to you, listen. But no, it’s fantastic. It’s a beautiful set, and I’m
excited to be here with you. – Well I’m glad you’re here. Well, Chris and I have worked
together for many years now, which is awesome. Actually our desks are
right next to each other. So I feel like I know you so well, and I know all the work you’ve
been doing all these years. But the work you’re
doing right this minute is really exciting, and
I’m really pumped for it. And I want everyone out
there to know what’s going on because not only do you
have a new book coming out, but you did this whole research survey all about millionaires. And this whole episode we’re talking about how to build wealth and
what does it look like to be a millionaire. And you’re the expert
now, you know it all. – Well listen, we really dug in. You know, and it’s not just me, this is the team. So we commissioned the largest study that’s ever been done on millionaires. – Love it. – Rachel, we studied over 10,000. – So a lot of millionaires. So this is not like you went
and grabbed like four people that have wealth and you’re like, “What did you do?” – No, no. – Like this is like legit. – Yeah, we didn’t do a focus
group where you find 10 people. – That’s right, that’s right, no. – No we did a study. So
much so, we commissioned a company, a research firm, to help us. Because we didn’t just want to get people that know who Dave is, who
Rachel is, and Chris is. – Right, right. – Right, we wanted to get out there and find out the reality. Everyday people, what is it? – Yes. – And so we studied over 10,000 of them. And I have to tell you, the
findings of the research, the stats that we have, the stories, and even the myths that we end up busting, it proves that the American dream is still alive and well, Rachel. – It is. – And it’s available. – It totally is, I love it. And so that’s the thing is,
there’s so many myths around this part of our lives,
right? Because it’s like you hear “millionaire” and
you have all these thoughts of what a millionaire is,
and it’s not always true. – That’s right, no. – Most of the time it’s not. And so we actually sent
our very own George Kamel, if you watch the Dave
Ramsey Show on YouTube, George is a great one, isn’t he? – He’s hilarious. – You just put him in your
back pocket, I mean he’s just. – He could fit too. – He’s the greatest thing ever, yeah. – Yes. – So George went out on the street to ask every day people their
opinion on millionaires. So here’s what they found. – Hey guys, George Kamel here. I’m in downtown Nashville to figure out what the average person
thinks about what it takes to become a millionaire. Let’s do this. What do you think the normal careers are of the average millionaire? – Doctors, lawyers. – Singer or movie star. – Business and investing. – Tech industry, I’d assume. – Finance. – TV. – How do you think most
millionaires got their money? – Partially inheritance. – A good salary per year, to invest. You can’t become a millionaire unless you have the money to do it. – Inherited it. – I think a lot of it has to be luck. – There’s one way to become a millionaire. – What percentage of
millionaires do you think inherited their money or
got some kind of trust fund? – 30%. – Okay. – I’d say 80. – 50% at least. – 70%. – What would you guess
is the average income of a millionaire? – Oh, I couldn’t even guess. I know Kylie Jenner makes a lot of money. – Kylie Jenner, that’s who I think of. – $200,000. – $300,000 a year. – At least $250,000. – $150,000. – Do you think you could become a millionaire in your lifetime? – Probably not. – It would be nice, but
that’s not going to happen. – No. – Unfortunately not, no. – That is like classic though, right. Like those responses, like that is, that is the stereotypical
response of what you think millionaires are all about. – It really is, Rachel,
and no matter where you go. You can go across the country, and if you grabbed every
day people off the street and you asked them, those
are the kinds of answers you’re going to get. Because that’s what people
truly believe as reality. – Yes, so one of the myths
on there that I would totally believe if I
wasn’t in my line of work and knew the reality, is, “Oh, people just inherit their wealth.” Like you know, you
think of the Kardashians or like Paris Hilton, the Hiltons, right? Like you think of
all these famous families. And that’s who the millionaires are. But that’s not true, that’s not true. – No, it is not the truth. The inheritance is actually
a very small percentage, and yeah some of the people you named, you’re going to hear
about that and it happens. But for every day people, there are a very small
percentage of people that get any kind of inheritance at all. And even if they do, Rachel, what I found in the study is that even if
they did get an inheritance, it was so small, it didn’t cause people to become a millionaire. And so it’s this mindset. – They’re self-made millionaires. – They’re self made, that’s
the exact term that I use. So I want people to know this because now what you have to do as a
individual is make a decision and begin to work a plan
that puts you on that path. It doesn’t matter what
mom and dad left you or if grandma and grandad
left you something or not. You still have an opportunity. – Yeah, yeah, your destiny
really is in your hands. And the other thing that
would make sense to me, again if I didn’t know
the answers of all this, but… Is that you need a high paying salary. Right, because to me it’s like, “Oh it’s math. Yeah, you make a lot of money,
you invest a lot of money, and you’re going to be wealthy.” But a lot of these
millionaires did not have high paying jobs necessarily. – No, Rachel, they really didn’t. And people believe that,
that you need a high six figure income. And so if that’s the case, people that are making the average income or less than that, then they
think it’s not possible. And again, in the study
we found out the truth. It doesn’t take a high income. What it takes is someone that
is committed and focused, and they tell their money what to do. – Okay, the last myth that
I’ve heard people say, and people have told me this, you know. Someone said, “Oh yeah, well
you can only become rich if you just do what rich
people do in secret. Like there’s all these secret things that millionaires know
about and they do them, but they don’t share with
the rest of the world.” – Right. – And someone had an entire
conversation about that with me and I remember thinking, what? No, because that’s not the truth. They don’t. It’s not luck, and it’s not all these risky, crazy, secret investments, right. – Yes, well people believe that. They think they need to
create something, right, or take some kind of high super risk with a crypto-currency. And as you know, we’ve
heard about those things. – Right, right, yes. – And you have to be
able to do that in order to become a millionaire. Again, not true. It’s a myth. And the problem is, Rachel, with some of these that we’ve covered, if you tell a myth loud
enough, long enough, people start to believe it. So I want people to hear the truth and understand what’s
available so they can decide for themselves and their legacy. – I love it because, not
the risky investments, because we always say, you know, and what we teach when
we teach people to invest into retirement, we say all the time like, it’s boring, like it’s not exciting stuff. But it’s the diligent, when
you do it over and over and over and over, that’s the cause. – And you know we tell people to what? Don’t invest in anything
you don’t understand. – Yes. – So you need to be able to explain it to a 10- or 11-year-old. That’s the basics. Because we don’t want
to take too crazy risks. – Right, right. – We worked hard to make this money. Now I want people to make
their money work for them. – I love it. Okay, there’s some viewer questions. And I usually grab viewer questions from my Facebook group. Sarah asked, if someone
can spare $100 a month, or whatever amount, and
they’re just getting started, where should they put the money? – We know baby step number
one is to save $1,000. Right? Because when you have
that money tucked away, now you don’t have to use that and you don’t have to go see a bank or you don’t have to get a credit card. – That’s right. – So let’s say now that she’s
already got that in place. Now what? Well I want her to use it to attack debt. Right? Baby step number two. And then baby step three is to build up a three to six month emergency fund. Get that in place and
now you’re ready to go. With what I call the
wealth building steps. – Oh, yeah. – You want to start to
put that money aside to be able to allow that money to grow for your dreams later. – I love it, so good. Okay, and for all of this investing stuff, you guys, go to our SmartVester Pro. If you go to RachelCruze.com, look at that because these are people that can really help you with your money. They have the heart of a teacher, not the heart of a salesman. And they’re awesome. Because again, the investing world, like what we’re talking about on this episode, it’s intimidating. – It is. – And I remember even Winston and I, when we first sat down
with our SmartVestor, when we first got married
and like combined our money and he was talking to us, a few times I was like,
“Can you explain that again? Can you explain that again?” And even as Dave Ramsey’s daughter, like there were things that I didn’t understand. And I made him keep explaining
it until I grasped it. So don’t feel stupid. – No. – Ask questions. – I appreciate you
bringing that up because SmartVestors, they do have
the heart of a teacher. – Yes. – That means they want to help you. – That’s right. – They’re not trying to sell you stuff. So if you have questions, ask them. I promise you, they’re not judging you. They’re there to help you. – Absolutely. Alright Julia said, how often
should I check my investments? Once a year or more often? – Well I think anytime you’re
looking at your situation, you want to check investments
every time that statement comes in the mail. You should be getting something
from your 401K or 403B each and every month. Take a look at it, but Rachel, I want people to hear me. Don’t freak out, right. Investing is like riding
a roller coaster, right. Do you ride roller coasters? – I love roller coasters. – Do you sit up front? – I went to Disney World
recently, Chris Hogan. – Okay, did you sit up front? – I did on Space Mountain, legitimately, they put me in the very front. – I’m not sitting up
front, I sit in the back. I need some time, yeah.
I need some cushioning. – No, you gotta get right up there. – I need to be able to watch. – Gotta get right in the game. – But listen, investing is
like riding a roller coaster. There’s going to be some ups and downs. – Yes. – But here’s the deal, when you’re riding a roller coaster, as long as
you have your seat belt on, you know everything is going to be okay. – We hope so. – So my reality is, is
investing is a lot like that. But when you have a
SmartVestor Pro in your corner, and you’re investing in
things that you understand, you can relax. – That’s good. – Right? And take a deep breath. So look at it each and every month, but I want you to meet with
your investment professional at least quarterly. And if you’re married, you and your spouse need to go in for that meeting. So we’re talking about
getting on the same page and any questions that need to be answered get answered in front of both of you. – I love it. So Cory asks, how do I even start? I’m a few months away from completing baby step three and don’t have a clue where to start or even how much to start with. – Uh, this is fantastic. So this is somebody
that has paid off debt, right? So congratulations to you. – Yay Cory, good job. – I’m very proud of you. Seriously, that’s a big deal. – It is, it’s a huge deal. – And people need to be encouraged. I love that you do that on your show. You’ve done a great job. What I want you to do is take steps now to start to prepare for your future. So that could mean if you’re working, you could start to put that
money aside in your 401K. If their employer has a match,
which means they will match how much you put away up
to a certain percentage. – Yep. – Right, and if there is no match, then let’s put that money in, and then as you start to grow
and you gain more income, you have an opportunity to use the 410K, but also don’t forget about Roth. – Yes, Roth IRA. – Rachel, Roth is my friend. – Me too. – I may name my dog Roth. You know why? Because you’re talking
about tax free money. Right, you’ve already
paid the taxes on it. This money is going to
grow and the government can’t touch it anymore. – That’s right. Alright Danielle asks, how should I do retirement
investing as a stay at home mom? 15% of zero is still zero, smiley face. So is it 15% of my husband’s paycheck? Should my husband and I
put a higher percentage of our money into his 401K at his job? Is there a better option than a 401K? – Okay first and foremost,
your job being at home is a very, very important job. You allow your husband to be able to work and do what he needs to do. So Rachel the first
thing I’d want her to do is start to use a better pronoun. We, right, she’s saying his and my. No, it’s we, together. And so sitting down. – I quote you all the time, I say my friend Chris Hogan says, “We need to be more French.” – That’s exactly right. – Speak we, not me. – That’s right. – I’m proud you give me credit. – I do, I do quote you. – I figured you’d steal it. – Whatever, I’m a giver,
I’m a giver, not a taker. – But listen, but
listen, it’s so important to be able to really know that you’re working a plan together. – Yes. – And so the 401K and
them going to sit down with a SmartVestor Pro,
they both need to go, husband and wife. – Yep. – Right, because this is their money. This is their thing. But here’s another thing that can happen. Because they are, he’s
working and there’s income and they’re filing taxes together, they could also sign up
for a Spousal Roth IRA. She could have this account in her name, and that might make her feel better, even though it’s all for the family. People want to know what they’re doing. But here’s another beautiful thing, if she’s doing a side job or
she’s doing anything else, she could also direct
that money to a Roth IRA to allow her to save. So the biggest thing for this is, if they’re saving in a 401K together, this is their money. This is the family money. – That’s right. – So they both need to be involved in the meeting with the SmartVestor. And they need tweaks moving forward. – Okay and something else I
see stay at homes moms skip is life insurance. Moms out there, even dads, but especially you stay at home moms, make
sure you have life insurance. I always like to tell stay at home moms, at least half a million dollars on you. Because if something happens to you, your family has to be taken care of. So make sure to go to zander.com, check it out. Winston and I use Zander, but again, I see a lot of stay at home moms, they’re like, “Oh no, I
don’t need life insurance.” I’m like, no, the work you do at home, like you said, it’s so important. – Absolutely. – And your husband has to
fund that if something happens to you, so make sure you get it. Do y’all use Zander? – Absolutely, listen, your job as a stay at home parent has value. – Yes. – And that’s stay at home
moms and stay at home dads if they’re out there. – Amen, that’s right. – So you definitely want
to have that in place because guess what? Life
is going to have to go on. You’re going to have bills. You’re going to have things
you’re going to need to pay for. Let’s make sure you’ve got
some money put aside. Term life insurance with Zander. – Yes. – They’ll help you out and
they’ll walk you through any questions you have. – That’s exactly right. Okay, last question. Sara said, where is the
best place to start learning about investing? Any good books to start with? I have a horrible financial background and know nothing about investing. We’re in baby step two and I am a planner. I want to start doing research now. – Well I love that you want to learn. And I’d say you could
start off with the book, The Total Money Makeover. You know, that is the book, Dave’s book, it’s the number one best seller. And it really starts to break down kind of the principles. And there’s another
book out there, Rachel, that I’ve heard about. – Oh, Love Your Life Not Theirs? What is it? – No, it’s called Retire Inspired. It is a book that helps people
chase down their dreams. – It is good. – And go after things they’re going for. – It is good though, yes. – It is, but no seriously. – Retire Inspired is all about all of
this investing stuff. – And I have a show, Chris Hogan Show. – Okay, go ahead. – Where people are allowed to call in. I take callers because I love people. And I want them to be
able to ask me questions. – I go with a Facebook community. – And I want to be able to talk with them. But no, listen, there’s an
opportunity to grow in knowledge. – That’s right, that’s right. – And I think it’s really important for us when we don’t understand something, we tend to stay to ourselves. – Yes. – That’s dangerous. – It is, yep. – So reach out. And listen our team has
all kinds of resources. Your show, my show, it’s an
opportunity out there to learn. And so I just encourage
you, get plugged in. Talk to people, have a conversation. And don’t ever feel like
your question is dumb. – That’s right. – Because there’s no such thing. – People need answers
and that’s what we do. We help them. – And again, we’re
honing on this you guys, but it is, it’s so critical
because investing again, it can be an intimidating topic, just like she asked. So find someone that does
this day in and day out. Those are our SmartVestor Pros. Check them out and start
on the road to investing. So you can become… – A millionaire. – Oh, we didn’t even plan
that, that’s pretty good. (upbeat music)

17 Comments

  1. Becky McCreary says:

    Awesome video. Love you both.

  2. Reagan Love says:

    He has the best voice!

  3. Gary Cruz says:

    Chris Hogan should do Voice Over work!

  4. Meggadegs says:

    Great video, thank you. So interesting. What a great study to be a part of.

  5. Victoria Hoa - Realtor says:

    Some of Chris’ points of millionaires sounded like the stats from the Millionaire Next Door! Great talk!

  6. Maria Laura Re says:

    Kardashians are probably broke

  7. K H-C says:

    I am so excited for the new book, can't wait to be even further inspired on our financial journey!

  8. Erin Symone says:

    Love these kinds of videos. They are so inspiring to me, especially as a woman determined to be the first (MULTI)millionaire in her family! Oh and Chris's voice is just amazing!!

  9. Mashyeg says:

    I love the chemistry(wink)

  10. Lovin' Livin' RV'in says:

    Love the Roth IRA. I would love to hear more about standard IRA to Roth IRA conversions and the tax implications.

  11. Rebecca Shields says:

    That voice tho!

  12. Gina H. says:

    With that voice I believe I too can be a millionaire! 😂👌🏽

  13. Bradley Hite says:

    If Disney was still looking for someone to play Mufasa in the new lion king movie, Chris hogan would be perfect.

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  16. Mys Led says:

    Well this is BS. Besides those very rare millionaires who literally started with nothing, the majority of these wealthy people became wealthy due to there family having money already. You have to have money in order to make money in our civilization today, unless your lottery type lucky.

  17. Jodi Xo says:

    A lot of the money these celebrities makes spend a lot of money to look good and personal indulgence. They take all these trips, million dollar homes, expensive cars. I have heard the worse thing to be is “broke in Hollywood”. Kanye West said he filed bankruptcy of 54 million. No telling coming out of his mouth whats truth. So many actors have went broke. Some of the most famous! They spend all and more than what they spend. A lot of these people are depressed and commit suicide. Money DOES NOT equal HAPPINESS!!!!! Half of these people don’t even handle their own money. They have managers. We need to look to Dave and Rachel for wisdom. DEBT MAKES YOU LOOK GOOD!!!

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