ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

What’s the Difference between Millionaires and Billionaires?

Updated on November 22, 2015
Source

The Growing 1 Percent

A report published by the Spectrem Group noted that in 2014 there were 10.1 million households in America with $1 million or more in assets, excluding the value of their primary residence, increasing from 9.6 million households in 2013, or an approximately 5% increase year over year. Generally, the increase is largely due to the rising stock market and real estate values since the 2008 financial crisis. Who are these millionaires? Their average age is 62, with most of them still working as 1 in 5 owns or started their own company, and 70 percent work more than 40 hours a week.

Forbe’s annual ranking of billionaires showed an approximately 9 percent increase in billionaires from 492 billionaires in America alone to 536 billionaires in 2014 and 2015, respectively. There were 1,645 billionaires worldwide increasing to 1,826 billionaires worldwide in 2014 and 2015, respectively, or an approximately 11 percent increase. The Economist noted that the 1 percent increasingly work in finance, marry each other contributing to dual-income households and care a lot about politics. Many of these individuals have committed to giving most of their wealth to philanthropic causes.

The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing
The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing | Source

The Differences: Millionaires vs. Billionaires

Let's debunk a couple of myths first. Broadly speaking, the average millionaire is not the flashy Ferrari-driving individual spending thousands of dollars in one night. The average billionaire is nothing like a millionaire in terms of mindset and lifestyle.

Here are the common differences between each group:

Common Millionaire Characteristics
Common Billionaire Characteristics
Millionaires live below their means and have frugal lifestyles.(1)
Billionaires invest in ideas. There is practically no limit on what billionaires can buy. Islands and fortified mega-yachts are not out of the question.
Millionaires own their own company, are senior corporate executives and consultants.(3) They are masters of their industry.
Billionaires create new industries.
Millionaires collect wealth by earning, saving and investing.
Billionaires recognize the value of simple ideas. They discover massive holes and exploit them by developing products or services that carry high value for a lot of people.
Millionaires are self-made. They have a keen sense of self, discipline and are able to inspire others.
Billionaires have this but also a keen sense of the world. They leverage and understand the power of teamwork. They rely on a core group of people to help them through the endeavor.
Millionaires own modest homes and cars.
Billionaire’s homes are very secure and private. Many of their homes are advanced fortresses.
Millionaires solve problems for their customers.
Billionaires solve problems for humanity. They take major risks because they are very passionate and confident to the point where they seem fearless. Billionaires power through impossible obstacles that would stop most people.
Millionaires like to make their own decisions and be their own boss – sometimes forgoing help from others.
Billionaires work during lunches, dinners and the weekends. They mix friends and work. They recruit other smart people which is all part of a larger plan that they have.
Millionaires tend to preserve wealth to keep their millionaire status. Only 20% of millionaires inherited their wealth. (1)
Billionaires are completely independent thinkers. They pursue a passion and really don’t care about the money. What’s $1 million when you are worth $70 billion? A rounding error.
Around 80% of millionaires are college graduates. Only 18% of millionaires have Master’s degrees. Eight percent have law degrees, 6% have medical degrees, and 6% have PhDs.(3)
Many attended elite schools or dropped out from elite schools to pursue their passion. Overall for the global elite, the majority of each of these groups attended and graduated from college, and a very high percentage attended elite schools. Powerful men (92.4%), women (91.0%), and Davos attendees (90.5%) had higher college attendance than billionaires (71.1%).(2)

Work timing is important as Bill Gates, Carlos Slim and Amancio Ortega, all started early, small and worked hard. Certain billionaires have managed to quietly build an empire. Overall, in my experience, millionaires are inspirational while billionaires have a different internal programming entirely.

If you are interested in learning more about millionaires in America and what made them millionaires beyond the above information, I recommend reading The Millionaire Next Door: The Surprising Secrets of America's Wealthy written by Thomas J. Stanley and William D. Danko.

Interested in learning more about what a billionaire is like? Start by watching this video of Elon Musk:

Sources

1) Thomas J. Stanley and William D. Danko. 1996. The Millionaire Next Door: The Surprising Secrets of America's Wealthy. Gallery Books.

2) http://www.businessinsider.com/how-many-rich-powerful-people-went-to-elite-colleges-2014-6

3) Ellsberg, Michael. 2011. The Education of Millionaires: Everything You Won’t Learn in College about How to Be Successful. New York, NY: Penguin.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)