In this article, we are going to discuss the 15 reasons why millionaires think they’re middle class. You can skip our detailed analysis of what it means to be a millionaire and the companies of self-made millionaires and go directly to the 5 reasons why millionaires think they’re middle class.
Millionaires have a lot in common, such as ambition, a sense of time worth, a fear of failing, a knack for recognizing when to seek professional assistance, and even the ability to define oneself as middle-class.
What It Means To Be A Millionaire:
Being “rich” feels more and more unattainable. Simply put, a million dollars doesn’t go as far as it once did. That is what all the millionaires who now firmly identify as “middle class” people think, according to last year’s Ameriprise Financial survey: only 8% of the approximately 600 US citizens who had investable assets valued at $1 million or more in the study of over 3,000 said they were wealthy. 60% of those millionaires identify as upper middle class, while 31% interestingly identify themselves as just middle class. Surprisingly, a large number of millionaires reside comfortably in the middle class, revealing an oddly curious disconnect between their sense of self and their financial security.
In response to a question about what it means to be “wealthy,” 85% of the millionaires stated that it means having financial security, while 66% of them said that it means “being able to provide for myself and my family,” and 58% agreed that it means having the “freedom to do what I want.” The majority of the millionaire’s group (80%) attributed their comparatively good fortune to “financial planning and investing,” which was followed by “making a good income” (71%), “living within my means” (69%), and “luck” (surprisingly, just 13%).
Another survey done by Bloomberg revealed that over 25% of highly paid professionals (i.e., doctors, attorneys, etc.) who earn at least $175,000 annually actually regarded themselves as “very poor,” “poor,” or “getting by but things are tight.” Why do so many people who appear to be wealthy feel like they are not at the top of the socioeconomic ladder? High interest rates and inflation, along with overall economic uncertainty, are cited by CNBC as contributing factors.
Experts believe that there is no consensus on what it means to be “rich” and that it lacks a universal definition. However, many people think having money means having the freedom to live life on one’s own terms.
Companies of Self-Made Millionaires:
According to UBS and Credit Suisse’s 2023 Global Wealth Report, there are an estimated 22.7 million millionaires in the United States, making it the country with the biggest number of millionaires worldwide. Multiple millionaires are self-made, acquiring their fortune through a combination of diligence, learning, and investing. This is what many millionaires do to become rich.
Warren Buffett, who is renowned for being self-made, is arguably one of the most well-known and wealthy people in the world. Technically, he is a billionaire rather than a millionaire, but he still merits a mention here because he is well-known for being self-made. Buffett’s net worth is a whopping $128.7 billion. The chairman and CEO of Berkshire Hathaway is renowned for his prudent and moral approach to investing; he made his first million dollars managing a hedge fund.
The American multinational conglomerate holding corporation Berkshire Hathaway Inc. (NYSE:BRK-A) is based in Omaha, Nebraska, in the United States. The corporation controls hundreds of businesses in a variety of sectors and industries. Berkshire Hathaway Inc. (NYSE:BRK-A) has sizable stakes in well-known businesses like Apple, Bank of America, and Coca-Cola. Another noteworthy aspect of Berkshire Hathaway Inc. (NYSE:BRK-A) is that its stock has one of the highest values in the country. The corporation’s total annual revenue in 2023 was over $300 billion.
Wolfe Herd, who started Bumble Inc. (NASDAQ:BMBL) at the age of 25, made a name for herself in the online dating industry. She designed Bumble Inc. (NASDAQ:BMBL), a dating application where women initiated talks by utilizing her knowledge from working at another dating service. The youngest woman to take a US corporation public was Wolfe Herd and her net worth exceeded $500 million as of 2023. To pursue other options, Wolfe Herd left her position as CEO of Bumble Inc. (NASDAQ:BMBL) in early 2024 and took on the role of executive chair. Bumble Inc. (NASDAQ:BMBL) annual revenue amounted to $234 billion in the financial year ended on 31 December 2022.
Also see 12 Tips from Experts on How to Become a Millionaire by Age 30.
With that said, here are the 15 reasons why millionaires think they’re middle class.
15 reasons why millionaires think they’re middle class?
Methodology:
To pick out the 15 reasons why millionaires think they’re middle class, we have gathered data points from surveys and expert opinions from various reliable sources, such as Businesswire and CNBC.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15. Millionaires define the middle class by their definitions
The way millionaires define the “middle class” is one of the most perplexing factors contributing to their perception. Even if conventional metrics could identify them as wealthy, a lot of affluents establish their standards, frequently based on comparisons and experiences that deviate from accepted economic metrics. By highlighting the variety of viewpoints within the millionaire class, this distinct self-perception challenges the idea that money is linked to a monotonous experience.
14. Millionaires handle the burden of privacy
The extra layer of stress in millionaires’ lives comes from having to keep their riches confidential and from worrying about being taken advantage of or receiving unwanted attention. Perhaps it’s just simpler for the millionaires to hide under the pretense of being middle class. This fight with secrecy, which is often underestimated, reveals the emotional toll that money may take as these wealthy individuals try to strike a balance between their need for privacy and an image of normalcy and their financial success. Thus, handling the burden of privacy is one of the reasons why millionaires think they’re middle class.
13. Millionaires face philanthropic dilemmas
Greater wealth equates to greater difficulties. Often, wealthy individuals are known to be philanthropists, but this is not an easy endeavor. For millionaires, determining causes that are compatible with their values, dealing with expectations, and handling the complexity of charitable giving can be a constant source of discomfort.
This humanitarian dilemma emphasizes the complexities of utilizing money for the betterment of society, highlighting the necessity of making deliberate decisions and a sincere desire to make a positive contribution. Thus, to get away from this constant pressure, affluents identify themselves as middle class.
12. Millionaires tussle with family expectations
Millionaires often grapple with the expectations of their families, considering more money comes with more responsibilities. There is often a constant strain to manage wealth generationally while supporting extended family members, which can make it tough to distinguish between the shortcomings of the middle class and affluence. This family burden demonstrates that money is not just an individual achievement but also a collective responsibility, adding yet another layer of complexity to the millionaire’s life forcing millionaires to think they are part of the middle class.
11. Millionaires handle intricate tax structures
If your taxes are consistently high, do you ever feel like you are wealthy? Having wealth does not make one’s financial situation easier. To maximize their financial situation and reduce their tax obligations, millionaires frequently become embroiled in complicated tax arrangements and navigate a maze of rules and regulations. Therefore, financial success comes with challenges and responsibilities as demonstrated by this intricate dance with the tax system, resulting in a millionaire’s self-identification as part of the middle class.
10. Millionaires compare themselves to competitors
The millionaires of today, like many Americans, compare themselves to others, not down the economic ladder but above. Furthermore, when it comes to making money, the super-rich are surpassing mere millionaires by a wide margin, making the latter like the middle class in contrast. Thus, millionaires frequently deal with the never-ending cycle of comparing their achievements to those of their contemporaries. This never-ending comparison highlights how everyone needs to feel good about themselves and gauge achievement about others, regardless of financial status.
9. Millionaires may have significant monthly expenses
Although it might seem logical that millionaires lead modest lives, for many of them, the opposite is true. Some people who live in affluent areas, for instance, can easily shell out $200,000 annually and yet be considered to be “scraping by.” Many have extravagant spending habits, maybe as a coping mechanism for the obligations and stresses that come with a significant amount of money. Hence, millionaires perceive themselves as middle class.
8. Millionaire’s never-ending desire for more
The quest for financial achievement frequently results in an unsatisfied desire for more. Regardless of their enormous wealth, many billionaires remain entangled in the never-ending cycle of accumulation and never feel like they have enough. This endless dissatisfaction highlights the emotional complications that come along with financial success and undermines the notion that wealth inevitably translates into satisfaction.
7. Millionaires see themselves as upper-middle or middle class
When evaluating millionaires’ self-perceptions, it becomes evident that a substantial proportion of those with $1 million or more in assets define themselves as middle-class or upper-middle class. This strange way of thinking casts doubt on traditional ideas of wealth and class divisions by exposing a gap between net worth and self-worth. Contrary to popular belief, this self-categorization implies that wealth is a subjective experience that extends beyond material possessions and incorporates a complex sense of one’s identity.
6. Millionaires may still have a job
Despite the popular belief that millionaires lead carefree lives, a sizable portion of them nonetheless work. This phenomenon, whether driven by passion or necessity, invalidates the common misconception that business success implies an early retirement and a life free of employment obligations. The fact that billionaires continue to work shows how multifaceted their lives are, and that work may support more than just basic needs; it can also provide a sense of purpose and personal fulfillment. Hence, a millionaire still having a job is one of the reasons why millionaires think they’re middle class.
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Disclosure: None. 15 reasons why millionaires think they’re middle class is originally published on Insider Monkey.