The BCG report found a 16.3% growth in US wealth in the past year, with the trend looking to increase going forward. They project millionaire’s wealth will increase by a minimum of 7.7% each year through 2018, a much larger increase in wealth growth than what’s expected from non-millionaires. Most of the increased wealth is coming from equity markets which have been doing well as of late.
The wealth increase wasn’t limited to those living in the US. The world’s richest 1% also had a banner year with global private wealth increasing 14.6%. This worldwide wealth increase led to 20% more millionaires all over the world, reaching a total of 16.3, up from 13.7 million in 2012. Asian countries fared best with a total increase of wealth of approximately $8.7 trillion. North America came in a close second with a wealth increase of $6.8 trillion.
If you find that you’re not one of the new millionaires included in this report, there could be a number of reasons for this. Below is a list of ten common reasons many people fail to become millionaires:
- You spend more than you make each year
- You try to “keep up with the Joneses” by trying to live up to other people’s expectations
- You fail to pay yourself first
- You have kids, and you have them too young
- You own more house than you need
- You continually replace things before you need to
- You let others take care of your money
- You don’t live a healthy life
- You get a divorce
- You have at least one bad habit that’s a money drain
If you currently aren’t a millionaire, or aren’t on course to becoming one, it’s likely due to the consequences of choices you’ve made in the past. The good news is you can make different choices from this point forward to create the wealth you want. It won’t necessarily be easy, you’ll need to create a plan, and you’ll need to avoid making the mistakes which drained your wealth in the past. By doing so, you may be able to count yourself as one of the newly crowned millionaires in these yearly reports in the not-too-distant future.
(Photo courtesy of Pamela Carls)