When you think about being a millionaire, what do you think about? Someone who has millions of dollars in the bank?
There are four types of millionaires. Let’s look at all types:
Net worth millionaire
This is a person whose net worth (excluding the value of their primary home) is a million dollars or more. This person could own a business or other real estate. To calculate this, we add a person’s assets and subtract it from their liabilities. If the result is a million dollars or more, then the person would be worth a million dollars and be considered a millionaire.
This is a person who has an investment portfolio or retirement accounts that are valued at a million dollars or more.
In the world of network marketing, an individual who generates a million dollars or more over a twelve month timeframe is considered a millionaire.
These are people who over the course of their lifetime have generated at least a million dollars. Let’s take the average person in the United States; according to the US Census Bureau, the median household income in 2016 was just under $60,000.00. That household would have earned at least a million dollars in a little over seventeen years.
These are the four types of millionaires. Which one are you?