Things are getting pretty damn expensive these days.
You scroll through social media and see the headlines. Inflation is eating away at the cost of groceries and gas. Housing is so expensive that a $1 million price tag for a fixer-upper in a major city is now normal. The narrative everywhere is that “a million dollars isn’t what it used to be.”
You start to think, “Why am I even bothering? A million isn’t even enough to retire anymore!”
But that narrative is dead wrong. It’s a limiting belief that holds people back. The habit of a future millionaire is to ignore the public’s perception and focus on the facts of scarcity and security.
Let’s use some real numbers to prove that $1,000,000 is still a massive amount of money and puts you in an elite group.👇
A million is still a very impressive chunk of change. Here’s why.
Fact Check #1: The Comparison Gap
To understand how big a million is, you need to look at the baseline of the average American.
The Federal Reserve’s most recent data shows that the median household net worth in the U.S. is just $192,084.
What does that mean? It means half of all households have less than that amount.
Having a net worth of 364,500.
In other words, If you hit that seven-figure mark, you are leaving 90% of American households behind. That is the very definition of a significant amount of wealth.
Fact Check #2: The Longevity Habit
The next myth is that a million isn’t enough to retire. This comes from ignoring the power of compound interest during retirement.
Future millionaires follow the 4% Rule, a historically supported guideline for sustainable retirement withdrawals.
The 4% Rule says that if you start by withdrawing 4% of your portfolio in the first year and adjust that amount for inflation every year after, you have a very high probability of that money lasting for 30 years or more.
What does $1,000,000 provide?
- Year 1 Withdrawal: $40,000 in income.
- The Next 30 Years: That $40,000 would grow with inflation, meaning you are sustainably generating a stream of income that will last for your entire retirement.
And here’s the kicker: Even with current research from groups like Morningstar suggesting a slightly more cautious baseline withdrawal rate (like 3.7% in 2024), a million dollars still provides nearly $37,000 in sustainable, inflation-adjusted income for a 30-year retirement.
Pretty cool, huh?
Redefining the Finish Line
If $1,000,000 puts you in the top 10% of American wealth builders, why does it still feel insignificant?
Because millionaires don’t define themselves by the $1M net worth mark.
They see it as a safe, self-sustaining income machine.
The public sees $1,000,000 as a giant, static pile of cash that they’re supposed to live off of directly. That’s what’s missing from the current conversation. When you think of a million dollars as an asset that earns and produces, the perspective changes completely.
Here’s how millionaires re-frame the goal:
- They Shift from Spending to Generating: A future millionaire doesn’t look at $1,000,000 and calculate how long it will last. They look at it and calculate how much income it will generate for the rest of their life. As we showed with the 4% Rule, $1,000,000 means $40,000 a year, perpetually adjusted for inflation. Their goal isn’t to hit a number; it’s to create an automated paycheck.
- They Understand the Power of the “First Million”: Financial pros often say the first $100,000 is the hardest to save. The first $1,000,000 is the most important because it’s the point where your money starts earning more than you can contribute. Once you hit seven figures, the effects of compound interest take over, and the journey to $2 million, $5 million, and beyond is significantly faster. Your first million does the heavy lifting, so your future ones don’t have to.
- They Value Independence Over Extravagance: The true millionaire habit is this: Stop chasing the number and start building a self-sustaining income stream. For most people, Financial Independence (FI) is the true finish line—the point at which their portfolio income covers their essential life expenses. For many, that FI number is below $1 million. The goal is not a mansion; the goal is the freedom to never worry about a paycheck again.
$1,000,000 may not buy you a private jet, but it will buy you the greatest asset of all: Financial Independence.
You’re on the right path.
Now stop listening to the noise and keep building that wealth.
