The Blubber

Being a millionaire once signaled lifelong financial security — but that’s no longer a guarantee. Thanks to inflation, $1 million today doesn’t stretch as far as it used to. In fact, you’d need more than $1.6 million in 2025 to match the buying power that $1 million had back in 2005.

And while a million-dollar net worth may look impressive, it doesn’t necessarily translate to happiness. Research suggests that well-being tends to level off when your income hits around $100,000 per year.

That said, building wealth can still offer important benefits. Growing your net worth can help you avoid relying solely on Social Security in retirement and provide you with greater control over your financial future.

Read more: How much money is considered rich?

The Most Common Path to $1 Million

Wondering how most Americans become millionaires? The answer is surprisingly straightforward: by steadily contributing to a retirement account from every paycheck, year after year.

It might not sound glamorous, but this long-term strategy is incredibly effective. Here’s why:

• Built-in savings discipline: Automatic contributions help you consistently save and train you to live below your means.
• Emotional balance: Regular investing helps you stay focused on the long term and avoid rash decisions based on market noise.
• Employer match: Many workplace retirement plans offer matching contributions — essentially free money that boosts your savings.
• Smart investing over time: Most retirement accounts adjust your investments based on your age and target retirement date, reducing risk as you approach retirement through target-date funds.

Becoming a millionaire doesn’t happen overnight — but with steady habits and smart planning, it’s more achievable than many people think.