12 Reasons You Will Never Be A Multi-Millionaire

Forbes

09-06-2025

If becoming a multi-millionaire were easy, everyone would be doing it. There are over 22 million millionaires in the US, and likely many more on the path to reaching this level of wealth. The numbers get smaller as you move up the net worth scale. I want to share with you 12 hurdles you will need to overcome if you wish to become a multi-millionaire yourself.
I recently helped a couple reach their financial freedom, a number of $10 million of liquid net worth that they could use to fund their lifestyle if they quit working. They are celebrating by taking a group of their closest friends on a once-in-a-lifetime trip. How amazing is that? While this number may be beyond what you need to retire comfortably, many of you may not feel you are living lavishly with the income provided by just a million dollars of net worth. Especially if most of your net worth is tied up in non-income-producing assets like your primary residence. This is why many of you reading this will likely want to plan to become multi-millionaires.
Are you taking the simple but necessary steps to grow your wealth and reach financial freedom? Alternatively, are you mortgaging your financial future by making these 12 common financial mistakes that will keep you from ever building a significant net worth?
Over the past 20+ years, I have been helping people bootstrap their way to building life-changing wealth. I've also seen people take mind-blowing income, seemingly make it disappear into thin air and end up in financial ruin. Either way, given enough time and perseverance, anyone can achieve the American Dream and become a multi-millionaire. Do I think this will be harder today than it has been in the past? Perhaps, but hey, play the hand you've been dealt and make the most of the opportunities you have available to you.
Here, we will cover some of the most common issues that can prevent you from joining the millions of Americans who have already become members of the not-so-exclusive Multi-Millionaire Club.
I could argue that it has never been harder to invest well, given the constant news at our fingertips and the ability to trade on our iPhones 24 hours a day.
You could also say it has never been easier just to set it and forget it with a well-diversified portfolio of a few amazing index funds. You will just get average market returns, but here's the news: these returns are typically way better than what most people achieve by stressing themselves out by buying and selling individual investments over time.
It will be nearly impossible for the typical worker to become a self-made multi-millionaire without at least doing some type of investing. Yes, you could try and wait for a big inheritance or marry into money and strike it rich. There aren't enough wealthy parents or single people for all of us to follow these routes to becoming multi-millionaires. Therefore, it is likely that you will need to invest.
You may find comfort in the illusion of security that comes with hiding your life savings under the mattress. Still, you are losing money every day as inflation erodes your purchasing power. If you want to achieve and maintain financial freedom, you will need the help of compounding interest via some type of investing.
There are risks associated with investing in anything from stocks to bonds, ETFs, mutual funds, and even when buying real estate. However, the risks of not investing are even greater to your long-term financial security. By not taking any investment risk, you are essentially guaranteeing what you are most afraid of: running out of money in retirement.
(Example) How to Accumulate $2 Million:
This is a simple example of the magic of compounding interest. The same result, but you can get away with saving a whopping 95% less! Putting this another way, if you saved $2,708 per month from 22 to 70 and earned 10% interest, you would have accumulated over $38 million. Think of how fabulous your lifestyle could be with a passive income stream generated from $38 million.
Assuming you've overcome your irrational fear of investing and have crafted the perfect investment plan (or had the help of a fiduciary financial planner to create the best investment plan for your financial needs) if you don't contribute enough along the way, you will never become a multi-millionaire.
After all, it is not what you make but what you keep. I know plenty of high-income folks without a pot to piss in – I do have the pleasure of living in West Hollywood, within walking distance of Beverly Hills, where some tend to care more about spending their money on flashy cars and designer clothes and jewelry than actually saving and investing it. On the other hand, I appreciate the stories of ordinary workers with average incomes who have amassed staggering amounts of wealth over their lifetimes.
Do yourself a favor and stop procrastinating; there will never be a better day to begin saving than today. With enough time, it doesn't take a huge amount each month to become a multi-millionaire. Above, we mentioned $141 per month to become a multi-millionaire, which is like a few smoothies at Erewhon and less than a monthly gym membership at Equinox.
Even if you can only save a tiny amount, you will be better off than if you never started at all. I bet you will be surprised by how you don't even miss the money you are saving. That tiny savings rate can grow over time into something substantial.
Amenities that were once a luxury are now considered necessities. Not to mention, the cost of living has skyrocketed over the past few years, driving up the cost of everything. The Trump tariffs, if fully enacted, could drive up the cost an additional 10-150%+ on almost everything you buy. It is easy to see how so many people struggle to save a bunch of money each month.
Many people try to finance their American dreams. Their budgets are pushed to the breaking point. Some live paycheck to paycheck, while others fall into the costly trap of credit card debt. The best-case scenario here is that you are not accumulating any wealth. The worst case is that you are setting yourself up for bankruptcy or having to work forever. Constantly drowning under an insurmountable pile of consumer debt is stressful and costly.
Pay yourself first and make living within your means and getting on track for financial freedom a priority.
This mistake also goes hand in hand with living beyond your means. So many people are drowning in debt. It blows my mind. One person I met had $51,000 in credit card debt. This translated into over $10,000 in interest per year just to stay even. (What would you do with an extra $10,000 per year?) I met them after they had taken some drastic steps to get their debt under control and finally paid off. It wasn't easy, but it was necessary.
Good debt, such as a mortgage, business loan, or, arguably, student loans, can help you build wealth over time. Consumer debt (credit cards) – will likely be a major hurdle to achieving financial freedom.
You are busy, life is stressful and you probably don't want to think about getting the best deal on every purchase. I get it. But $20 here and $150 there can really add up, especially when they happen on a regular basis.
Recently, I was booking a flight, and for some reason, a premium economy seat was more expensive than one in business class. So, I saved money by buying a better class of service. Sometimes, saving money can be fabulous. Other times, it is just buying your toilet paper at Costco, where it is half the price of the grocery store.
It may just seem like a few dollars each time you throw money down the drain. But if you invested those few dollars over time, it could mean the difference between running out of money in retirement or maintaining financial freedom as you age.
Unhealthy choices can lead to a cascade of painful expenses and, ultimately, even more pain. Someone I know put off getting treatment for a minor knee injury, initially saving some money in medical bills. The minor injury eventually developed into a more serious issue, ultimately requiring surgery. Even with excellent health insurance, the out-of-pocket costs were substantial for surgery and post-op physical therapy. However, the cost of missed work, bonuses and career progression were even more significant than the medical bills.
Not surprisingly, 98% of millionaires consider their health to be their most important personal asset, according to a recent study by US Trust. Without your health, no amount of money can buy back your quality of life. Yes, plastic surgery may be able to make you look healthier, but it doesn't actually improve your overall health.
As a financial planner and health enthusiast, I encourage you to take the time and invest in the necessary screenings and physical exams to maintain optimal health. Look to exercise (more) and increase the health value of the food you consume. I am aware that real food (even better if it is organic) will cost more than highly processed food, but this is the one area I almost always advocate for people to spend more.
As the owner of a wealth management firm, I think my being healthy (and feeling good) should translate into a more profitable business. We don't make money when we are sick at home.
Do you cringe every time you hear the word budget? I understand; I do, too, which is why I try to operate within a spending plan. When people are good with money, they are not just treating their spending choices as a random event. The money will not just take care of itself. Yet, many people are surprised when that monthly bill pops up (yet again, every month) on their credit card or bank statement. Simply put, a spending plan is about managing your financial expectations to avoid unwelcome surprises so you will still have money left over for the better things in life. Think fabulous vacations, clothes, regular massages or even money for a babysitter.
It's not what you make but what you keep. Many people love to get big tax refunds; it feels like found money, right? No! The reality is that if you get a big tax refund, you have just given the government an interest-free loan. All this while you are suffering the consequences of paying sky-high credit card interest for the privilege.
Proactive tax planning is a major part of becoming a multi-millionaire. The more money you have will often lead to more taxes each year. The dividends from a $10,000 account may not really change your taxes much. Once your account reaches million-dollar balances, the annual taxes can be painful, especially if you aren't invested in tax-efficient investments or portfolios.
Many people only think about taxes when they file their annual tax returns. In many cases, this can lead to missing out on valuable tax-planning opportunities and result in overpaying your taxes each year. This will slow down your progress to becoming a multi-millionaire.
Vanguard estimates that working with an average financial advisor can add 3-4% to your investment return each year over time. Think of how much value you could potentially receive if you were working with a fabulous fiduciary financial planner.
To put this in perspective, if you saved $1,000 per month and earned 6% interest from age 22 to 70, you would accumulate around $3.3 million. That is pretty nice, but if a financial advisor were able to help you bump that up to 10% per year, you would end up with over $14.1 million. You would save the same amount, but you could possibly end up with more than four times the net worth. That is pretty fabulous if you ask me.
If you hate your job or career, it will show. This can result in slower career advancement over time. While it may be easier said than done, choosing the right career path that offers the potential to earn enough to support your desired lifestyle and is something you genuinely enjoy is a major life quest for many. You may need to balance taking a job you like (versus one you love) to earn the money you need to bring more happiness to other parts of your life.
Obviously, some careers have more income potential than others. More income does make it easier to build more wealth over time.
First off, divorce is expensive. If you save up and become a multi-millionaire, then you have to split everything in divorce; well, that doesn't sound like fun.
Likewise, choosing the wrong spouse will make your quest to become a multi-millionaire much more difficult. If one spouse is a spender and the other is a saver, the spender tends to win. When considering a life partner, don't forget to consider how you each think about money.
Those who have a purpose or passion in life make it easier for themselves to get up every morning. Over the years, I've observed that many of my happiest and most successful wealth management clients actually love what they do. They move through life with an extra spring in their steps. Some reached financial freedom long ago and continue to work. Others pivoted to a second career that brought them more joy.
It may be tempting to choose a job or career path primarily based on the salary. Also, consider the quality of life that it will ultimately provide for you and your loved ones. Follow your passions and dreams, and money will follow, as the saying goes. At the risk of coming across as overly optimistic, I've seen real-life examples of this over and over again in my career, helping people improve their lives through financial guidance.
You don't have to do this financial stuff alone. Work with a fun, fiduciary financial planner to get your financial house in order, and you, too, could achieve wealth beyond your wildest dreams.
In case you were wondering, there are around 4.8 million people with a net worth of $5 million or more. Perhaps one day you can be one of them.