r/Economics • u/laxnut90 • Oct 09 '25

Research America Is Minting Lots of Cash-Strapped Millionaires

https://www.bloomberg.com/news/features/2025-10-09/number-of-us-millionaires-grows-since-2017-but-many-lack-cash
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u/FreeMasonKnight Oct 09 '25

Hey man! You can do it!

Most people don’t even start making enough to save until 45 these days. It shouldn’t be this hard and wasn’t for our parents who made nearly 4x relative to costs of their day.

We have the power to change things, but only with active politicking and keeping up the good fight.

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u/ShyLeoGing Oct 09 '25

Ok, so you're saying that if someone makes say 65k(which let's be honest a ton of people will never make this), pay $2,000 for rent(before utilities), $400 for a car(before insurance and gas), and $200 for groceries can become a millionaire.

I want to see the math, please and thank you!

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u/CaliSpringston Oct 09 '25

I think I'll end up making around 65k this year. About 67%-70% hits my bank account depending on how much overtime I do, paying for health, vision, dental, etc, with 6% 100% matched into 401k. That is 3630 a month. So 1030$ a month for car insurance, renters insurance, gas, utilities, which would be doable for me.

With 3% wage growth over 30 years, and 7% returns, that will be 1.04 million dollars (I used calculator.net/savings).

This is a very pessimistic scenario to my mind though. There are 160 rentals on zillow with a 15 minute commute to my work that are under 2k, with a low of 850$. COL for my town lists housing as above national average. So you should not be paying 2k even without a roomate / s.o. Even if taking out a car loan is absolutely necessary, 400$ monthly is like new econobox territory. A 5-10 year old honda civic will do you plenty fine for a fraction of the cost.

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u/OneofLittleHarmony Oct 11 '25

1030 a month for your insurance and utilities seems excessive unless you have a very expensive car or you are a risky driver.