What Industry Makes the Most Millionaires?
While tech is often touted as the industry that can take you from rags to riches, interestingly enough, this is not the sector that produces the most millionaires. Yes, there are certainly a large number of millionaires in Silicon Valley, but other industries have more people reaching the seven-figure mark. Now, if you want to know what industry makes the most millionaires, you’ve come to the right place.
So, without further ado, let’s dive in and find out the most millionaire-friendly industry at present!
What industry is the most likely to make you a millionaire?
The answer may surprise you: it’s finance. In fact, according to Forbes magazine, finance is responsible for creating more millionaires than any other industry in the US.
Millionaire statistics seem to confirm this too — in its recent annual World Wealth Report, the consulting firm Capgemini revealed financial services as the top makers of millionaires. Around 35.7% of the respondents considered finance as one of the three best industries to become a millionaire.
British newspaper The Guardian further reported that senior bankers on Wall Street and the City of London are earning above $1.3 million on average. No wonder, bankers are generally rich. So, if you’re looking to become a millionaire, it might be worth considering a career in finance. While there are no guarantees, this industry offers better chances of making your millionaire dreams come true.
To give you a better idea of the industry’s earning potential, investment bankers typically make a lot of money through salaries, bonuses, and commissions. Hedge fund managers tend to make a lot of money through performance-based fees. Private equity firms typically make money through management fees, carried interest, and co-investment income.
Other industries that make the most money
Aside from finance, there are other industries that support jobs that could make you a millionaire. These include:
- Information Technology
- Average hourly rate – $45.17
- Employment level (in thousands) – 2,929
- Healthcare and Education Services
- Average hourly rate – $31.24
- Employment level (in thousands) – 21,142
- Average hourly rate – $30.55
- Employment level (in thousands) – 12,657
- Construction and Real Estate
- Average hourly rate – $34.07
- Employment level (in thousands) – 7,628
- Utilities (including renewable energy and electricity)
- Average hourly rate – $46.71
- Employment level (in thousands) – 537.1
- Mining and Logging
- Average hourly rate – $35.75
- Employment level (in thousands) – 600
- Professional and Business Services
- Average hourly rate – $31.8
- Employment level (in thousands) – 22,116
- Wholesale Trade
- Average hourly rate – $34.71
- Employment level (in thousands) – 5,788.9
Factors that contribute to your success in the finance sector
While finance is the best industry to become a millionaire, having a career in it does not automatically make you rich. Although relevant skills and education are vital contributors, there are a few other things that really stand out, most notably:
- Connections — the right people can get you access to important information, jobs, and opportunities. This makes all the difference in this industry. Developing and growing your network is crucial for getting a foothold in the financial world.
- Hard work — those who succeed in finance, and in any other field, put in long hours honing their craft and developing their skills.
- Resilience — this industry is full of ups and downs (especially if you deal with the turmoil of financial markets), and those who can weather the storms and keep moving forward are the ones who ultimately succeed.
The risks and rewards of pursuing a financial career
Both the risks and rewards of pursuing a career in this industry are great. On one hand, you have the potential to achieve a lot of success and financial stability by being part of the best industry to make money. Depending on your actual job, you could have a flexible work schedule, incredible earning potential, and high satisfaction levels if successful.
The downsides? A highly stressful job (especially if you are responsible for other people’s money in addition to your own), possibly long hours (at least when you’re first starting out), and generally, a high burnout rate.
Examples of people who have achieved great success in this field
People and organizations that are skilled at using and expanding money head the most successful firms and top industries today. Some of them probably believed that a business that will make you rich is one that operates in financial services. That’s why they preferred having a career here over other industries.
Some examples of people who have achieved great success in this field include Warren Buffet, George Soros, Lloyd Blankfein, Jamie Dimon, Jiang Jianqing, Mario Draghi, Michael Bloomberg, and Christine Lagarde, among others.
These persons have usually started from the bottom and worked their way up. They are creative thinkers with the ability to see opportunities where others cannot. They are also very good at taking risks, which is often essential in the finance sector.
The Bottom Line
There are a variety of industries with high numbers of millionaire earners, but the top spot goes to financial services. The finance sector is home to some of the wealthiest people in America. Nearly half of the 400 richest Americans made their fortunes in finance or investments. That includes hedge fund managers, investment bankers, and private equity investors.
If you’re wondering what industry makes the most millionaires other than finance, your second-best option is the tech industry.
What business makes the most millionaires?
A few businesses have made more millionaires than any other. These businesses include investment banking, hedge fund management, and private equity. All these belong to the financial sector, the top industry that produces the most millionaires.
What companies have turned their employees into millionaires?
More and more companies are producing millionaires all over the world as time goes by. However, certain companies seem to produce more millionaires than others. Among the top companies that are known for creating a large number of millionaires include Facebook, Google, Microsoft, Amazon, Apple, and Alibaba.
What profession makes the most millionaires?
We’ve already tackled what industry makes the most millionaires as a whole. Now, let’s find out what professions can most likely make you a millionaire. The answer really depends on how you define a millionaire. If you consider someone with a net worth of $1 million dollars or more, then lawyers and doctors top the list. However, if you consider someone a millionaire because they make $1 million dollars or more annually, then it’s CEOs and investment bankers.