10 Things Millionaires Won't Tell You

1. You may think I m rich, but I don t.

A million dollars may sound like a fortune to most people, and folks with that much cash can t complain they re richer than 94% of U.S. households and earn $350,000 a year, on average, putting them in the top 1% of taxpayers. But the club is a little less exclusive. About 6.7 million households have a net worth above $1 million excluding home equity more than there were in 2002 but lower than the record high of 9.2 million in 2007, according to a 2009 report by Spectrem Group.

Moreover, a recent survey by Fidelity found just 46% of millionaires do not feel wealthy. They re worried about health care, retirement and how they ll sustain their lifestyle, says Gail Graham, executive vice president of Fidelity Investments.

Indeed, many millionaires still don t have enough for exclusive luxuries, like membership at an elite golf club, which can top $300,000 a year. While $1 million was a tidy sum three decades ago, you d need $2.9 million for the same purchasing power today. And two-thirds of all millionaires have a net worth of $2.5 million or less, according to research firm TNS. So what does it take to feel truly rich? The magic number is $7.5 million, according to Fidelity.

2. I shop at Wal-Mart . . .

Most millionaires come from middle-class households, and roughly 65% have been wealthy for less than 15 years, according to a 2009 survey of high-networth individuals, published by American Express Publishing and Harrison Group.

They may not buy the 99-cent paper towels, but millionaires know what it is to be frugal. About 84% say they spend with a middle-class mindset, according to the AmEx/Harrison survey. That means buying luxury items on sale, hunting for bargains and even clipping coupons. In fact, affluent households, including those with income above $100,000, tend to be heavier coupon users than those with lower incomes, according to a 2009 study by Nielsen and market research firm Inmar.

The recent financial crisis has only worked to exaggerate this phenomenon. People making six figures are shopping at Costco. They re realizing that they really do need to be more aware of how they spend their money, says Jon Gallo, principal of Gallo Consulting, which works with financial planners on issues of family wealth.

3. . . . but I didn t get rich by skimping on lattes.

So how do you join the millionaires club? One way is to run your own business. That s how more than a third of all millionaires made their money, according to the AmEx/Harrison survey. Over a third had a professional practice or worked in the corporate world; only 5% inherited their wealth.

Regardless of how they build their nest egg, virtually all millionaires make judicious use of debt, says Russ Alan Prince, coauthor of "The Middle-Class Millionaire." They ll take out loans to build their business, avoid high-interest credit card debt, and leverage their home equity to finance purchases if their cash flow doesn t cut it. Nor is their wealth tied up in their homes. Home equity represents just 10% of millionaires total assets, according to TNS. People who are serious about building wealth always want to have a mortgage, says Jim Bell, president of Bell Investment Advisors. His home is probably worth $1.5 million, he adds, but he owes $900,000 on it. I m in no hurry to pay it off, he says. It s one of the few tax deductions I get.