NO HEAVY LIFTING REQUIRED:
Getting Rich Slowly: So you want to be a millionaire? Take your time—and don’t forget to compound. (David R. Henderson, 9/17/26, defining ideas)
My former co-blogger Bryan Caplan recently posted an interesting table showing the net worths of households at each age range. Not surprisingly, the older you get, up to age 74, the higher your net worth. What would surprise many people who hear how strapped families are for funds is that 25 percent of the households whose head was between age 55 and 74 had net worths (in 2022 dollars) of over $1 million. How did they do it? Did they have high-paying jobs? Although Bryan doesn’t present data on incomes, the answer is that a high income is neither necessary nor sufficient for becoming rich.
In 1999, economists Dwight R. Lee and Richard B. McKenzie wrote a book showing how following seven simple rules, starting early in life, could get you to $1 million or more late in life. When I talk to people who are dispirited about their financial prospects, I try to buck them up by telling them these rules and, occasionally, buying them a used copy of the Lee/McKenzie book titled Getting Rich in America: Eight Simple Rules for Building a Fortune and a Satisfying Life. (Why eight rather than the earlier mentioned seven? I’ll explain later.) In my Wall Street Journal review of the book, I stated that their book is “is the how-to handbook for becoming the millionaire next door.”Becoming a millionaire in Zimbabwe is hard. Becoming a millionaire in the United States is relatively easy, as I’ll show.
