There are an estimated 23 million millionaire households in the United States, according to the UBS Global Wealth Report released in June 2025. As the stock market continues to set new record highs, there are even more millionaires minted every day. As you read this, you may be wondering the best path forward to become a millionaire yourself.
Becoming a millionaire is relatively straightforward, but it takes work. While tens of millions of Americans are millionaires, hundreds of millions are not. Given enough time, literally anyone can become a millionaire. Here are five common strategies that have helped many average Americans build a million-dollar (or more) net worth. Keep reading if youโve ever asked yourself, how do I become a millionaire?
Is It Really That Hard To Become A Millionaire These Days?
There are an estimated 23+ million millionaires in the United States now. While there is no estimate of how many more households are on track to eventually become millionaires, given enough time and smart financial guidance, anyone can build a million-dollar net worth. The bottom line is that it is not that hard to become a millionaire.
You don't need to work on Wall Street, start a successful OnlyFans page, be born into a Hilton or Kardashian family or be a star athlete to become a millionaire these days. Obviously, the bigger your income, the easier it will be to grow your net worth.
According to the best-selling book "Millionaire Next Door," the average American millionaire makes a relatively average income, drives an average car and lives in an average neighborhood. It's more about how you handle your money than your profession and how much you earn. Granted, if you've signed a multi-million-dollar contract to play in the NBA or NFL at 22, you are more likely to become a millionaire than if you are working for minimum wage.
Steps To Build A Millionaire-Level Net Worth
If you are looking to build your own millionaire net worth, you will need to invest in something. This investment strategy could be utilizing the stock market, real estate or your own business. If you work for a company with stock options, this could even mean investing in advancing your career (and accumulating more company stock). The hardest part of becoming a millionaire is simply getting started.
Whichever path you choose to become a millionaire, you may or may not need more resources to get started. Everyone reading this post can start investing with a few dollars each month, whereas investing in real estate typically requires a substantially larger upfront cash investment. Most people who become millionaires combine a few wealth-building strategies, including investing in stocks, owning real estate, and advancing their careers. While earning a high income makes it easier to become a millionaire, you won't build real wealth if you constantly live paycheck to paycheck.
1. Invest Appropriately In Your 401(k) At Work To Become A Millionaire
Your workplace 401(k) is one of the most common ways to become a millionaire. At Fidelity alone, there were over 512,000 401(k) millionaires at the end of the first quarter of 2025. This is below the peak of 544,000 401(k) millionaires in quarter 3 of 2024, around the time the United States transitioned from the Biden to the Trump presidency.
The number of millionaires is undoubtedly much higher if you include all of a person's retirement accounts.
This strategy for becoming a millionaire probably requires the least effort. You fill out a form, and money is automatically deducted from each paycheck. You will even get a tax deduction for your 401(k) contributions. You may even get additional matching or profit-sharing contributions from your employer.
In 2025, you can contribute up to $23,500 to your 401(k). That number could jump to $70,000 if you are self-employed or get contributions from your employer. Add $7,500 to these 401(k) contribution limits if you are 50 or olderโthe total jumps to $81,250 for those aged 60 to 63.
While I don't recommend completely ignoring your 401(k) after you set it up, as long as you have your job and don't make any changes to your automatic contributions, the money should continue to be deposited into your account.
2. Own Rental Properties To Become A Millionaire
For the right people, investing in rental properties can be a good way to build wealth. Over the past 60-70+ years, many people have built mini real estate empires based on their rental portfolios. The buying rental property strategy helps you become a millionaire by having other people pay your mortgages on real estate.
Keep in mind, this is not actually passive income, even if you pay a property manager 20-30% of your revenue. Also, large down-payment requirements can be a barrier to entry for owning rental properties.
Being a landlord can be stressful and time-consuming. On the bright side, owning rental real estate also has some tax advantages. To become a real estate millionaire, you will likely need a lot of time and hard work to accumulate rental units.
3. Owning Your Home To Build A Million Dollar Net Worth
In many parts of this country, owning your home can be a great way to become a millionaire. Say you buy a million-dollar home; you need a roof over your head, right? If you simply make your monthly payments for 30 years (and don't refinance), you will own the home outright and be a millionaire. If the house's value has appreciated, you will be worth more than $1 million.
While shopping for your dream home requires effort, building up home equity doesn't significantly impact your day-to-day schedule. To utilize this strategy to become a millionaire, you must qualify for a mortgage and come up with a down payment.
4. Start Your Own Business To Become A Millionaire
A large percentage of millionaires are business owners. Starting a business can also be a great way to become a millionaire. Don't be fooled; starting a business takes time and effort. This could be anything from a side hustle to running your own practice. Why earn money for someone else when you can earn it for yourself?
Business owners can save even more on taxes with a Cash Balance Plan, making becoming a millionaire less taxing.
5. Build Wealth With Equity Compensation
Equity compensation, such as stock options, is sadly not available to all workers, but for some, it has been a fantastic way to become millionaires and multi-millionaires. This has been the case for many of my clients and friends working in Silicon Valley, particularly at tech companies or other startups, who have essentially become rich overnight.
Of course, they likely put in years of work to earn their stock options, and then spent even more years of work for those options to vest and skyrocket in value. They often had to wait for some other liquidity event for there to be value in these stock options. There are also some people reading this post who once had stock options that are now worthless or left unvested.
So, if you want to ensure you become a millionaire someday, start investing today, even if you don't know how to make that a reality. Getting started will put you one step closer to reaching financial freedom. The more time you have, the easier it will be to reach financial freedom. Even just $1 per day could make you a millionaire, assuming you have 60 years to reach this major life milestone.