When you picture a millionaire, do you imagine someone born into money, living off a trust fund, and never worrying about bills?
You’re not alone—many people assume that most millionaires simply inherited their wealth. But is that really the case?
Let’s dig into the numbers and bust this common financial myth.
Why People Believe It
The belief that most millionaires simply inherited their wealth is surprisingly common—nearly three-quarters of Millennials, for example, think this is true.
It’s easy to see why this idea sticks around. Stories about wealthy families passing fortunes down through generations are everywhere, from TV dramas to news headlines about billion-dollar inheritances.
The rise of high-profile heirs and celebrity “nepo babies” only adds fuel to the fire. Plus, with so much talk about generational wealth and the coming “great wealth transfer,” it’s natural to assume that most millionaires just got lucky in the family lottery.
There’s also a psychological comfort in this myth. If wealth is mostly inherited, then it feels like becoming a millionaire is out of reach for the average person—just a matter of luck or being born into the right family.
This belief can serve as an excuse, making it easier to dismiss the idea that hard work, discipline, and smart investing can actually lead to significant wealth.
Additionally, with so much talk about the looming “great wealth transfer” and the staggering sums set to pass from baby boomers to their heirs, it’s no wonder many people assume most millionaires got their start with a family windfall.
But while inheritance does play a role for some, the reality is much more nuanced—and far more encouraging for those willing to put in the effort.
The Reality
Here’s the truth: the vast majority of millionaires didn’t inherit their wealth—they earned it. It’s been proven time and time again.
According to recent surveys, only about 11% of American millionaires say they inherited their wealth, while a whopping 80% are first-generation wealthy, having built their fortunes through hard work, smart investing, and disciplined saving.
They invest well, use financial advisors where it makes sense, and work hard and take smart risks to build their wealth.
For instance, the Cato Institute has consistently proven the vast majority of millionaires earned their wealth rather than inherited it. The notion that “most millionaires inherit their wealth” is a myth, Cato says.
A Ramsey Solutions study of 10,000 millionaires found that only 21% of millionaires received any inheritance at all. Of those, 16% inherited more than $100,000 and only 3% got more than a million.
The late Dr. Thomas Stanley, who wrote the influential book “The Millionaire Next Door“, spent years studying millionaires in the United States from all walks of life. His findings prove just how little of an influence inheritance has on building wealth.
From Chapter 1 of his book, here are a few of his most insightful findings:
- Only 19 percent receive any income or wealth of any kind from a trust fund or an estate.
- Fewer than 20 percent inherited 10 percent or more of their wealth.
- More than half never received as much as $1 in inheritance.
- Fewer than 25 percent ever received “an act of kindness” of $10,000 or more from their parents, grandparents, or other relatives.
- Ninety-one percent never received, as a gift, as much as $1 of the ownership of a family business.
- Nearly half never received any college tuition from their parents or other relatives.
- Fewer than 10 percent believe they will ever receive an inheritance in the future.
Even among billionaires, most are self-made: as of 2023, nearly 2,000 out of 3,323 global billionaires earned their fortunes themselves, compared to just 314 who inherited their wealth.
Long-term studies show that only about 30% of wealthy families manage to maintain their wealth beyond two generations, and just 10% beyond three—meaning most fortunes don’t last and most millionaires today didn’t start out rich. While inheritance does play a role in wealth for some, it’s far from the norm.
In fact, only a small percentage of millionaires inherited $1 million or more, and many received little or nothing at all.
Expert Tip
If you want to build wealth, focus on what you can control: consistent saving, smart investing, and living below your means.
Don’t get discouraged by the myth that you need to be born rich to become wealthy. Most millionaires followed a plan, invested wisely, and worked hard to reach their goals.
Bottom Line: The idea that most millionaires just inherited their wealth is simply not true. The majority are self-made, proving that with determination and good financial habits, building real wealth is possible—no trust fund required.
So instead of envying those who seem to have it all handed to them, take inspiration from the countless millionaires who started from scratch and made it happen themselves.
