About this Video

• Video Title: How to become a millionaire: Proven ways to accumulate wealth
• Channel: Yahoo Finance
• Speakers: Brad, Carrie Hannon, Anushka Gupta, Rachel Cruz, Jason Brown, Rachel Rogers, George Camel
• Duration: 00:26:03

Introduction

This Yahoo Finance video explores various strategies for building and maintaining wealth, featuring interviews with financial experts. The discussion covers different approaches to investing, budgeting, and developing healthy financial habits, ultimately aiming to provide viewers with actionable advice to achieve and sustain millionaire status.

Key Takeaways

• The Rise of 401(k) Millionaires: A significant increase in the number of millionaires with 401(k) accounts was observed, largely due to a robust economy and strong market performance in the previous year. However, consistent long-term saving and contribution (an average of 18% pre-tax annually for 26 years) were crucial factors.
• Ultra High Net Worth Individual Strategies: Ultra high net worth individuals maintain significant allocations to alternative investments (44% on average), prioritizing risk tolerance, illiquidity tolerance, and long-term perspective. Diversification and long-term investment strategies are key.
• Seven Baby Steps to Wealth Building (Ramsey Solutions): This method emphasizes building an emergency fund ($1000 initially, then 3-6 months of expenses), eliminating consumer debt (using the debt snowball method), investing 15% of income in retirement, saving for children's college, paying off the mortgage early, and finally, building wealth and giving generously.
• Tax Refund Strategies: To maximize tax refunds, avoid treating them as "free money." Instead, create a plan for using them strategically, such as investing in the stock market or paying down debt. Financial education is key to making informed decisions.
• Seven Daily Habits for Wealth Generation: Develop daily money-generating activities (e.g., side hustles), actively monitor finances, close the gap between desired earnings and current income, and utilize available resources (reimbursements, etc.).