The richest 1% know the secrets to building wealth, and nothing makes that more evident than the statistics about how they stack up to the 99% that most of us belong to. Though we may never join them, many of us can’t help but be curious about how these wealthy folks live. Here are five surprising statistics about the richest 1% along with some tips on how to increase your own net worth.
1. It takes an annual income of $421,926 to join the 1% in the U.S.
When we think of the 1%, we often think of people raking in seven figures a year, but it only takes the comparatively modest figure of $421,926 to join the 1% in the U.S., according to data from the Economic Policy Institute (EPI). That’s an average of about $35,161 per month or about $1,156 per day.
Being in the 1% of your state may cost more or less than this, though. Connecticut residents will need to earn a whopping $700,800 per year to join this elite group while Mississippi residents can join the 1% with a mere $254,362 in annual income.
2. The richest 1% earn 26.3 times more than the bottom 99%.
The average one-percenter can expect to earn almost $1,317,000 per year, according to the EPI study. By contrast, the average 99-percenter brings home just $50,107 per year. That puts the average 1% income about 26.3 times higher than the average income for the rest of the country.
This ratio also varies by state. New York has the largest income inequality gap with the top 1% taking home 44.4 times what the bottom 99% earn in that state. Alaska has the lowest income inequality gap. Its 1% only earns 12.3 times what its bottom 99% earn.
3. The top 1% holds 42.5% of the national wealth.
The wealthiest 1% of U.S. residents — about 3.29 million people — hold 42.5% of our national wealth, while the remaining 325.7 million people share the remaining 57.5%, according to Inequality.org.
No other country in the world has so much wealth concentrated in the hands of the few. In the Netherlands, which had the next-largest income inequality gap according to the Inequality.org survey, the 1% only holds 28% of the country’s wealth.
Source: The Motley Fool