Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
It’s easy to assume that wealth and income are deeply intertwined. After all, how does anyone become wealthy without a lifetime of earning a six-figure salary?
But data gathered by personal finance expert Dave Ramsey suggests the link between the two may be weaker than many people assume (1).
According to Ramsey Solution’s National Study of Millionaires, only 31% of American millionaires earned an average annual income of $100,000 over their careers. Perhaps even more surprising is that one-third of these millionaires never reached an annual six-figure income.
Turns out, it’s completely realistic to reach a seven-figure net worth without earning a six-figure salary.
However, this modest path to millionaire status takes more effort and discipline to get there.
One of the tricks to accumulating wealth is managing expenses. Many ultra-high-income individuals struggle to break into the millionaire club because they let lifestyle inflation consume them.
In fact, a 2025 Goldman Sachs report showed that 40% of households earning $500,000 or more still felt like they were living paycheck to paycheck (2). Evidently, your money troubles don’t simply disappear as you earn more.
And on the flip side, this suggests being a millionaire isn’t just about your income. It’s entirely possible to reach millionaire status while earning a five-figures through discipline and consistency.
But building real wealth on a mid-level income means starting early, investing wisely and consistently finding creative ways to reduce monthly expenses. A good place to start is looking at big recurring costs like insurance, interest payments tied to any debt or even your mortgage.
The cost of homeowners’ insurance has been steadily increasing for Americans over the past few years. According to the Consumer Federation of America’s 2025 report, insurance premiums increased in 95% of U.S. ZIP codes from 2021 to 2025 (3). A full one-third of those surveyed saw their premiums increase by 30%.
Tellingly, U.S. homeowners spent a whopping $21 billion more on homeowners’ insurance in 2024 than in 2021. This could make it one of your biggest monthly expenses, depending on your state.
While shopping around is one of the best ways to find better rates, calling providers takes time and effort that many working people don’t have.
OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under two minutes, you can explore competitive rates from top insurance providers all in one place.
OfficialHomeInsurance.com can make it easy to find the coverage you need at a price that fits your budget. Even better, the platform’s side by side comparisons could save you $482.
Beyond home insurance, it’s also worth considering your monthly car expenditures.
Data retrieved from the U.S. Bureau of Labor Statistics suggests average motor vehicle insurance costs rose by 63.7% from December 2020 to 2025 (4). So make sure your rates haven’t crept up while you were busy with life.
OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you’re getting the best deal. Their matchmaking system takes into account your location, vehicle details and driving history to find the lowest rate possible for you.
Keep in mind that you can cancel your policy before the term expires, in most cases. Just watch out for any early cancellation fees.
The fact is, the best way to know whether you’re spending more than you need to is by making a budget.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards, and more — make it easier to stay on top of your retirement contributions and overall financial goals.
Another powerful tool for building your wealth? Time. Given a long enough horizon, even small savings and average investment returns can grow into a substantial nest egg.
For instance, an 18-year-old would need to save only $250 a month and earn a modest 7% annual return on investment to reach $1 million by the age of 66 (5). After contributing just $144,250, they would walk away with about seven times their total investment — or just over a cool $1 million.
Put simply, if you want to accumulate exceptional wealth without an exceptional income, starting as early as possible is essential.
To make the most of your investment, you need to be invested in the right assets. And with a sea of self-proclaimed financial gurus claiming they know best, it’s easy to feel like your money’s being pulled in a thousand directions.
But with Moby, you get expert research and recommendations to help you identify strong, long-term investments backed by advice from former hedge fund analysts.
In four years, and across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.
When it comes to reaching your first million, consistency is key. But if you’re struggling to get started, you might want to use a tool that fits investing seamlessly into your routine.
With Acorns, you can automatically invest in a diversified portfolio of ETFs every time you make a purchase on your debit or credit card.
The app rounds up each of your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio of ETFs. This means that every transaction — from your morning coffee to grocery shopping — helps build your wealth.
That $13.60 lunch? Acorns rounds it up to $14. That’s 40 cents dropped straight into your savings. You can even get a $20 bonus investment when you sign up with a recurring monthly deposit.
Over the course of a lifetime, a little can go a long way. If you manage to put together $250 worth of round-ups a month, that can make a big difference over 40 years.
Another essential ingredient in your climb from modest to millionaire is reducing your exposure to debt. After all, making interest payments on credit cards or high-interest loans can offset the positive impact of a diligent savings and investing strategy.
Avoiding debt is a big challenge for most Americans. According to Experian, 78.7% of Americans have credit card debt with an outstanding balance (6). As of June 2025, Experian reported the country’s average consumer debt was a staggering $104,755.
For those who are struggling with debt, there are still some options to take into account aside from the usual suspects like loan consolidation.
The big two big methods for paying debt down are the avalanche and snowball techniques.
The avalanche method focuses on paying down your highest-interest debts first. This can create a cascading effect where, after the big debt is paid, you knock off the smaller ones quickly.
Meanwhile, the snowball method starts with paying down your smaller debts one after another to build up steam. Then, once you’re down to one debt, you put all your resources into paying it off. From here, most financial experts recommend building out an emergency fund, then getting to investing as soon as possible. But becoming debt-free is the first, and arguably most important, step.
If you are one of the majority of U.S. households working to pay off credit card debt, there are ways to break free from the debt cycle.
With that said, if you have multiple creditors, it could be worth working with a professional to see where you can save.
If you’re approaching retirement without a high-paying career or a solid nest egg, your chances of becoming a millionaire are lower. But that doesn’t make things impossible.
Creative solutions could help you get there despite the odds. For instance, you could boost your savings rate by temporarily moving to a city or country with a lower cost of living. Working remotely while paying modest rent in Mexico, for example, could help you accumulate wealth faster.
You could also delay retirement. Adding five or even 10 years to your retirement plan could make a difference, especially if you’re building your nest egg later in life. A 40-year-old would need to save $900 a month and earn a 7% return on investment to reach $1 million by age 70.
If you have lofty financial goals, remember that you don’t need to go at it alone. It can be worth working with an expert to make sure you’re taking the right actions now for a sustainable future.
Advisor.com can help connect you with an expert near you for free.
Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network is made up of fiduciaries, who are legally required to act in your best interests.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Advisor.com even lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Ramsey Solutions (1); Goldman Sachs (2); Consumer Federation of America (3); U.S. Bureau of Labor Statistics (4); U.S. Securities and Exchange Commission Compound Interest Calculator (5); Experian (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
