Economy

Number of millionaires in Germany is increasing: the rich live here

You save a lot of your income.

Being frugal and living in an affordable house enables millionaires to save. They realize that income alone is not enough – they have to save what they earn.

John, who runs the ESI Money blog and retired at 52 with $ 3 million in net worth, has interviewed 100 millionaires in recent years. He found that the average millionaire spent $ 90,000 a year while earning $ 250,000 in income – a 64 percent savings rate. Saving, he said, allowed investments.

This savings rate may differ slightly, for example, because tax levies were not counted as expenditure. However, the most important point is that millionaires “save a large portion of their income,” he said.

If you earn 250,000 euros and spend 250,000 euros, “you are not necessarily financially better off at the end of the year,” he wrote.

Jamie Squire / Getty Images

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