Millionaires are more common than many realise. According to Swiss bank UBS's 2025 Global Wealth Report, approximately 23.8 million Americans are millionaires, representing just under 9 percent of the U.S. adult population. However, with the rising cost of living, generating seven-figure wealth may seem out of reach for many. Yet, becoming a millionaire does not always require a complicated process, according to certified public accountant Eleanor Victorioso, founder of fractional CFO firm The DoubleLine.
Smart Spending Beats Big Salaries
Victorioso's work with clients has shown that a high salary is not a reliable predictor of becoming a millionaire. Instead, spending habits play a crucial role, particularly avoiding the 'lifestyle creep' trap where spending increases with income. 'What matters more is income stability and a low ratio of lifestyle to earnings,' she said. 'I have witnessed so many $250,000+ corporate earners burn out and try to rebuild from rock bottom every 18 months with zero energy and motivation because they are trying to keep up with a proportionately increasing lifestyle.'
Her clients' experiences align with a November 2025 Harris Poll survey, which found that 31 percent of six-figure earners reported feeling financially distressed. Without controlled spending, it is challenging to invest enough to become a millionaire. Having financial clarity and determining what is enough to cover necessary monthly spending can help avoid overspending and lifestyle creep. 'My clients who know what is enough or what is the real monthly figure that covers needs, savings, and joy are able to work around that number,' Victorioso added.
Build a Foundation
While aspiring millionaires may be eager to start investing, setting the right foundation is essential, said Chris Walsh, senior advisor and regional director at Capital Choice Arizona. That foundation involves paying down debt, as a 25 percent interest rate on a credit card can easily negate monthly returns from investments. 'You can't out-invest a 25 percent APR credit card,' Walsh noted. 'Once someone is debt-free and has a foundation under them, the market can actually work for them instead of against them.'
Unexpected financial emergencies can also hamper investment goals. Walsh suggests building an emergency fund to prepare for unanticipated costs that a monthly budget cannot cover. 'Consistency is the whole game, and life gets in the way,' he said. 'Health setbacks, job loss and family challenges – that's why I spend as much time building emergency funds and life insurance protection for my clients as I do talking about investing. You can't stay consistent if one bad event wipes out the plan.' Common recommendations for emergency funds include three to six months' worth of living expenses in savings.
Stay Consistent
Experts agree that investing is a key part of a sound plan to become a millionaire. However, nearly 45 percent of Americans who are not investing in stocks said they lacked the money to do so, according to a September 2025 Federal Reserve Bank of Philadelphia survey. Yet investing even small amounts as soon as possible can help aspiring millionaires reach their goal, said Barry Cothran, president of financial planning software firm Vision & Hope Financial.
Cothran, who began investing at age 36, accumulated seven figures in his 401(k) over 24 years without earning a six-figure income until his 50s. His strategy involved automated contributions, employer matches, and consistency. 'For the first nine years, I only invested the minimum required to get the company match,' he explained. 'At that point, an automatic 1 percent annual increase in contribution began and continued for the next 16 years. I never unchecked the 1 percent annual increase box, and I didn't change investments based on market volatility.'
Automating contributions to a company retirement plan or an IRA and automatically boosting contributions each year are two ways to simplify investing. While returns vary based on investment type and market conditions, Cothran suggests a conservative approach, planning for a 7-8 percent growth rate, though actual market returns have exceeded 10 percent over the past 20 years.
Patience Pays Off
With consistent investing and smart money habits, reaching $1 million is often a matter of time and patience. The timeline depends on how much is invested and the returns achieved. Walsh refers to the Rule of 72, a simple formula that divides 72 by the rate of return to estimate how many years it takes for an investment to double. For example, a 6 percent rate of return doubles an investment in 12 years. Investors can use this rule to determine how much they need to save monthly to become a millionaire over a given period.
'At a 9 percent average rate of return, your money doubles every eight years,' Walsh said. 'If they have 31 years, they can get to $1 million saving about $500 a month. If they only have 20 years, they need to save about $1,500 per month.' Using a compound interest calculator can help compare timelines for different monthly investment amounts and estimated returns. However, note that projections typically do not account for taxes on investment gains or pre-tax contributions.
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