Studying millionaires shows perspective important

40 percent of the global increase.

But two researchers have a message for you. You don’t have to literally be a millionaire to have a rich life. It’s all about your perspective on prosperity.

Consider this: A person needed net assets of just $4,210 to be among the wealthiest half of world citizens in mid-2018, according to that Credit Suisse report. To be in the top 10 percent, you would have to have a net worth of just $93,170.

Want to be in the top 1 percent? It would take a net worth of $871,320. Net worth, or “wealth,” is defined as the value of your assets, including real estate (mainly your personal residence), minus your debts.

At the lower level of the wealth distribution, 3.2 billion adults — or 64 percent of the world’s adult population — have a net worth below $10,000. Many struggle with having enough to eat, not whether they can eat out.

Although you might never become a millionaire, you can learn from those who have become affluent and others who are likely to join their ranks. This month’s pick for the Color of Money Book Club is “Richer than a Millionaire: A Pathway to True Prosperity,” by William D. Danko and Richard J. Van Ness.

Danko is the co-author of “The Millionaire Next Door,” which has become a must-read for its groundbreaking examination on wealth in America. He and co-author Thomas J. Stanley introduced us to seemingly ordinary folks who had amassed extraordinary wealth.

Studying the affluent led them to this conclusion: “Most people have it all wrong about wealth in America. Wealth is not the same as income. If you make good income each year and spend it all, you are not getting wealthier. You are just living high.”

Stanley died in 2015, but Danko has carried on their research and continues to expand it by looking at what it takes to feel rich even if you aren’t worth millions.

In the new book, Danko and Van Ness found that this is what it takes to be a millionaire: Work hard, be frugal, save, avoid excessive debt and be a consistent investor.

Their research showed that it’s not just about the money. The overarching theme of their book is not only figuring out what it takes to achieve financial security but also defining wealth in a way that could make you realize you’re already richer than a millionaire.