23.8 million.

That’s the number of Americans with a net worth of $1,000,000+. At least, that was the tally at the end of 2024. The ranks have been steadily growing. Approximately 379,000 people joined last year – just over 1,000 per day on average.

That wealth creation ranks number one worldwide. If you’re curious, China comes in second, minting 141,000 new millionaires last year (among a much larger population pool).

How are so many reaching this magic number? Well, Andrew Carnegie once observed that “ninety percent of all millionaires become so through real estate.” He probably wouldn’t be surprised that booming housing markets remain a powerful force more than a century later.

Most people mistakenly assume that lofty six-figure salaries are the linchpin. The facts would say otherwise. A comprehensive poll of 10,000 millionaires conducted by Ramsey Solutions found that nearly 70% averaged less than $100,000 in annual income during their career. One-in-three never reached that wage level, even at their earnings peak.

Remarkably, that means there are far more millionaires below this key wage divide than above it.

Let’s be clear. A million dollars doesn’t have the same buying power it once did. But it’s still an important financial milestone. The term alone conjures up images of high-powered attorneys and corner-office business executives. While these groups are well represented in the 7-figure net worth club, that certainly doesn’t mean it’s exclusive to white-collar professionals.

In fact, Ramsey found that the third most common occupation among the millionaire class — right behind accountant – is none other than teacher. For the record, doctor didn’t even make the top five. That’s despite having a median annual income of $239,000, according to the Bureau of Labor Statistics.

As a former financial advisor, I met with several medical practitioners that had shockingly modest portfolios.

Now, I don’t mean to pick on this group. We’ve got more than a few physicians in our Investing Daily audience who happen to be very astute investors. But they would probably agree that some of their colleagues spend money just as fast as they make it.

So if paychecks are only part of the equation, then what is the real key to stockpiling wealth? The answer is lifestyle. Living within your means – and prudently investing the rest.

Most of the surveyed millionaires have frugality in their DNA. They typically steer clear of luxury vehicles and avoid consumer debt. They also minimize wasteful everyday purchases (rarely splurging on $30 lunch burritos delivered by Door Dash). Believe it or not, 93% of millionaires clip coupons at the grocery store.

Warren Buffett himself has famously used coupons at McDonalds.

The Ramsey study should be heartening for anyone toiling away on a 9-5 basis. Most people don’t achieve financial independence through inheritance or Silicon Valley startups. Most take home middle-class income throughout their 30s and 40s and reach the magic number around age 50 through consistent monthly investments and by taking full advantage of workplace 401(K) plans.

You might have heard the remarkable tale of Ronald Read, a retired janitor and gas station attendant from a poor family who lived modestly and plowed most of his paycheck into blue-chip dividend stocks like Wells Fargo (NYSE: WFC) and Johnson & Johnson (NYSE: JNJ).

When he passed away in 2015 at age 92, Read left behind a staggering $8 million estate.

The takeaway here is that anybody can build wealth over time. It’s just a matter of diligently socking away a piece of each paycheck and then letting the power of compound interest work.

Just $100 a week in a simple index fund earning 8% can grow to almost $900,000 over the next 35 years. Maybe more… if Goldman Sachs (NYSE: GS) and T. Rowe Price (NSDQ: TROW) have their way.

You see, these two asset management giants have just teamed up to bring private equity (and credit) to the masses. At this point, there are few open doors for ordinary retail investors like you and me. But within the next 6-12 months, small stakes in emerging, pre-IPO startups could be integrated into various retirement funds and investing platforms.

Goldman Sachs oversees $80+ billion in private equity investments and has spent 38 years building relationships in this hidden arena. T. Rowe Price is one of the nation’s top 401(K) custodians. Retirement accounts represent two-thirds of its $1.7 trillion asset base.

For decades, these alternative (and often illiquid) investments have been limited to endowments, institutions and ultra-affluent clientele. But a new executive order from President Trump has instructed the SEC to ease regulatory restrictions, specifically clearing the way for private equity instruments to meet the fiduciary requirements embedded in defined benefit retirement plans.

Polls show that 75% of 401(K) account holders are interested in private equity and would reportedly increase their contributions to take advantage.

This partnership is brilliant. GS employs 100 private equity investment professionals and can tap into its own proprietary deal flow pipeline, a rich source of prospective portfolio candidates. T Rowe Price has a vast distribution channel, existing relationships with advisors and plan sponsors, and specialized expertise in target date funds (the preferred vehicle to incorporate PE).

By harnessing their unique strengths, the two could quickly emerge as leaders in this new frontier (which is also attracting interest from Blackrock and other parties). As a prelude to collaboration, Goldman Sachs intends to take a $1 billion stake in TROW, acquiring a sizeable 3.5% ownership block.

That news alone triggered a quick 12% rally in TROW. Some of those gains have slipped away, but this is just the beginning. The introduction of private equity could be the strongest catalyst the wealth management industry has seen in decades – countering the steady drip of asset outflows into ETFs and other passive strategies.