While becoming a millionaire may seem impossible to some, there are over 56 million millionaires in the world. And while some might come from family money, many have made their fortunes on their own.
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The number is impressive for two reasons. First, now over 1% of the people in the world are millionaires. The number of millionaires rose 7.4% in 2020 alone, during a pandemic.
Our life project considered how long it takes to become a millionaire depending on where you live. How long does it take to work to retire on £ 1million? And are some cities more likely to produce millionaires than others? Let’s look at the numbers.
Calculate what it takes to be a millionaire
Our Life Plan has looked at many things to determine how long a person needs to work to make a million. This included the cost of living in a specific city, the average disposable income, and the average retirement age in the region. They also gave people a little leeway – they were allowed to eat out once a week and go on vacation once a year while saving up to meet their £ 1million goal.
While not a perfect formula, the numbers show how many years a person would need to save to retire on £ 1million.
Where you should live to become a millionaire
Let’s face it – some cities are just more conducive to making you rich than others. According to the study, Bern in Switzerland ranks first. With an average salary of £ 49,764, the Swiss capital allows people to become millionaires in just under 30 years as long as they are conscious savers.
Second place goes to Washington, DC, USA where 30.02 years of savings are needed to make £ 1million. Sydney, Australia and the city of Luxembourg also occupy the first places.
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How UK fares
London comes in fifth place, with just over 40 years of work needed to be able to save £ 1million. The average salary in London is the fifth highest of any country surveyed at £ 37,780, making it easier for Londoners to save their money after spending.
In 2018, there were 3.6 million households in the UK with net wealth of at least £ 1million. Net wealth includes investments, pension savings, assets and property. Since then, the number has only grown, and a current study shows London now has more millionaires than New York.
Not all cities produce a lot of millionaires
People in some cities will never be able to become millionaires by simply saving a portion of their income after spending. A good example is residents of Riga, Latvia, where the average worker would have to save for 1,481 years to reach £ 1million. In second and third places are Lisbon (846 years) and Budapest (708 years).
Even the cities at the bottom of the top 10 list don’t fare much better. In Prague, it would take you another 201 years to save enough money to become a millionaire.
In cities like these, you can increase your chances by adding additional sources of income, starting a business, or finding a second job.
According to Ian Wright, founder of Our Life Plan, “Just because your average salary is low doesn’t mean it should be your only source of income. Since the pandemic, there has been an increase in the number of people creating their own “side businesses” and diversifying their sources of income. “
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