This article is part of the Biblically-Informed Framework for Retirement Stewardship (BIFRS). It was initially published in February 2019 and updated in February 2026.
Author and speaker Chris Hogan, who was once part of Dave Ramsey’s team, wrote a book titled Everyday Millionaires as a follow-up to his earlier book on retirement, Retire Inspired.
The book summary says it will show you:
…how ordinary people built extraordinary wealth—and how you can too. You’ll learn how millionaires live on less than they make, avoid debt, invest, are disciplined and responsible!
I once met Chris Hogan and attended a training class he taught at Dave Ramsey’s headquarters in Nashville. He is an outstanding author and speaker (very funny). I read Retire Inspired and found value in both books. They promote the quintessential Dave Ramsey wisdom of living on less than you earn, avoiding debt, and wisely saving and investing for the future so that you can live and give generously.
The main point of the book is that if an ordinary person does this consistently, for most of their adult life, they’ll probably end up a millionaire.
The book obviously makes a big deal about becoming a millionaire. But what exactly is a millionaire? And is becoming a millionaire a reasonable goal, especially when it comes to saving for retirement? What if we fall short (as many will)? And most importantly, how does wanting (or becoming) a millionaire line up with the biblical warnings about the dangers of wealth?
What is a “millionaire”?
On his blog (and in his book), Chris describes a millionaire as a “net-worth millionaire,” which he defines as, “what you own minus what you owe. If that amount ends up being $1 million or more, you’re a net-worth millionaire.”
In simple accounting terms: assets (money and property) minus liabilities (debts) = net worth.
Calling someone a millionaire because they have a million-dollar net worth can be a little misleading. Let me explain…
A 50-year-old couple making $120K a year, that owns 2 cars each worth $20K, lives in a house worth $600,000 with a $250,000 mortgage, and with $610,000 in retirement savings would be a millionaire in net-worth terms: [$40,000 + ($600,000 – $250,000) + $610,000 = $1,000,000].
My point is that they are “net-worth millionaires” in terms of the value of their assets minus liabilities (which is a great place to be), but they are not millionaires in terms of being able to write a check for a million dollars. That’s because some of their assets are “liquid” (can be easily converted to cash) and some are “illiquid” (can’t be converted to cash easily).
For example, you can spend the money in a savings account, or you can sell investments in a brokerage account. But you can’t easily spend the equity in your house without selling it, refinancing it, or putting a second or reverse mortgage on it. And refinancing or mortgaging it may decrease your net worth since you are increasing the liabilities side of your balance sheet, especially if you spend the equity for something that doesn’t add to your assets column.
For that reason, I think a better description of a millionaire is someone having $1 million in investable assets, excluding their residence and other property. What if you inherited $1 million from your rich uncle, but your annual household income is $60,000, would you consider yourself a millionaire? You may “feel” like a millionaire, but it is likely that you would at some point start tapping your million-dollar inheritance for things that you can’t afford on your salary. In other words, your millionaire status may not be sustainable.
On the other hand, if you had an income of $200,000 a year for the last few years, with expectations of similar amounts going forward, you might think of yourself as a millionaire, if for no other reason than you are earning a million every five years.
How can you become an “everyday millionaire”?
It actually isn’t that hard: save consistently over a long period of time and earn a decent (but not necessarily spectacular) return and stay out of debt, and you could eventually become an “everyday millionaire.”
For example, if you are 25 years old, save $500 per month ($6,000 per year), and earn a 6% annual return, you will become a millionaire by age 66. If you start at age 35 and save $1,000 per month (or $12,000 per year) at a 6% return, you will have a million by age 65. Even someone who earns only a 2% annual return can save a million by saving $2,000 a month ($24,000 per year) for 30 years.
Obviously, the earlier you start, the more you save, and the better your return, the sooner you will reach the million-dollar mark. But there is a problem: $1 million ain’t what it used to be. Moreover, a million dollars thirty years from now won’t have nearly the same purchasing power it does now.
Someone with $1 million today is not as “rich” as someone who was a millionaire 20 years ago. According to the US government’s CPI Inflation Calculator, it would take approximately $1.85 million in 2026 to buy what $1.0 million would have purchased in 2006. The culprit, of course, is inflation. Therefore, someone retiring in 2006 with $1 million would have been much better off in terms of purchasing power than someone retiring today with the same amount.
Recent inflation has been particularly challenging. From 2020-2024, inflation averaged over 4% annually, with a spike to 8% in 2022. While inflation has moderated back to the 2-3% range as of 2026, the cumulative effect over the past several years has significantly eroded purchasing power.
A recent survey found that a majority of people think they need less than $1 million saved for retirement; in fact, almost a third said they needed less than $500,000. However, given inflation’s impact, these estimates may be dangerously low for many households.
According to the Federal Reserve Board’s 2022 Survey of Consumer Finances (SCF), the most recent comprehensive data available, average household retirement savings for those ages 65-74 was approximately $410,000, and the median retirement savings (a better indicator) was only $200,000. No matter which figures you use, many are getting to retirement age with far less than $1 million in savings.
$1 million is traditionally a number many financial advisors recommend people shoot for. And a lot of people set that as a savings goal. The fact that books like Everyday Millionaire, The Millionaire Next Door, The Millionaire Mind, and Faith-Based Millionaire, have been so popular suggests that it is an amount that has a lot of significance for people. And you may be familiar with the TV show, Who Wants to be a Millionaire?
Is $1 million enough for retirement?
Let’s look at $1 million in the context of retirement for a couple with $60,000 in pre-retirement income. If they need $50,000 in retirement income and withdraw 5% of $1 million from their savings, they will have $50,000 a year, or $4,167 per month, pre-tax – done.
However, in 2026, Social Security benefits have increased significantly compared to 2019. If they receive Social Security benefits of approximately $2,000 per month per person ($48,000 per year combined for a couple who both worked), they would need to withdraw only $2,000 per year from savings, which is 0.2% – an extremely safe withdrawal rate. Most couples will have combined Social Security somewhere between $30,000-$50,000 annually depending on their work history.
At a more typical 4% withdrawal rate from $1 million ($40,000 per year), plus $40,000 from Social Security, they would have $80,000 in gross income, which would support a comfortable retirement for many couples.
Based on these numbers, $1 million seems to be a pretty reasonable target for someone in their income range. But keep in mind, this is all pre-tax. If the savings are in a qualified retirement plan such as a traditional IRA, 401(k), etc., and our couple is in a 15% federal and state tax bracket (after deductions), they will need to account for taxes on their withdrawals. (Remember, a portion of their Social Security benefits may not be taxable depending on their total income).
Whether $1 million is enough or not is a very individual matter. If you are in a higher income bracket, perhaps making $100,000 a year, and need $80,000 in retirement, $1 million may be enough if you have at least $40,000 of additional income from Social Security and a pension.
And even if you have $1 million saved, will it grow enough to keep up with inflation? Inflation averaged 3.62% over the forty years from 1980-2020, but from 2020-2024 averaged over 4%. As of 2026, inflation has moderated back to approximately 2.5-3.0% annually. No one knows what it will be in the future, but an average of 3% remains a reasonable long-term planning assumption.
Inflation has the opposite effect on those just starting. At an average annual inflation rate of 3%, a 30-year-old in 2026 who wants to have the equivalent of one million in today’s dollars will need approximately $2.8 million in savings at age 65 in 2061. Yikes!
If you kept your savings 100% in cash, it would lose 3% per year or more due to inflation, and if you withdrew 4% of it a year, it would be 100% depleted in less than 25 years.
I can’t say whether you need to save a million dollars or not. If you are very frugal, and even more so in retirement, it may be possible to reduce your income needs and savings requirements considerably.
The big lesson here is that a million ain’t what it used to be and won’t be in the future. So, when it comes to saving for retirement, in addition to the prudent and informed risk in managing your investment portfolio, you will also need to factor in inflation and taxes to become a millionaire in today’s dollars.
Does $1 million make you “wealthy”?
In the financial services industry, someone with liquid assets between $1 million and $5 million is considered a “high-net-worth-individual” (HNWI). Someone with assets between $100,000 and $1 million is considered “affluent” or “mass affluent.”
Interestingly, according to recent surveys, when asked how much a person needs to be considered “wealthy” in America, survey respondents said that it would take an average of $2.5-3.0 million (up from $2.4 million in 2019), which is well into the “high-net-worth” category. This increase reflects both inflation and rising expectations.
I find this all very interesting when you consider that the average American with a net worth of approximately $190,000-$200,000 (as of 2026) is wealthier than the average person in any other developed country.
According to surveys by financial institutions, wealth is a much more abstract concept for many. Some equate wealth with enjoyable life experiences (24%); others view it as having “peace of mind.” Having loving relationships (12%) is considered “wealth” by some. But having lots of money (27%) and being able to buy anything they want (22%) is also part of being wealthy.
As Christians, our “wealth” has less to do with our “net worth” and more to do with the riches we have in and through Christ (Rom.11:33). But does that mean that we shouldn’t seek to increase our “net worth” if we need to and if we can?
Is it wrong to want to be an “everyday millionaire”?
Is it wrong to want to save a million for retirement? The short answer is, “it can be.”
If you believe that getting “rich” is having at least $1 million in the bank and that saving that amount will lead to happiness, contentment, status, and a carefree and secure life, then you have probably fallen in love with money, which is something that the Bible repeatedly warns against:
No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money (Matthew 6:24, ESV).
Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you (Hebrews 13:5, ESV).
For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs (1 Timothy 6:10, ESV).
The love of money is dangerous because, when we love something, we tend to be consumed by it. It rules us and ends up driving our values, motives, and actions instead of God and His Word.
Although God unquestionably calls us to value many things more highly than money, he does so without ever condemning wealth. There is nothing in the Bible that says it is wrong to be a millionaire or to have the goal of saving a million for retirement. Many well-known characters in the Bible were wealthy by today’s standards: Abraham, Job, Joseph, and Solomon, to name a few.
The Bible does, however, warn against becoming like the “rich fool” in Luke 12. Jesus didn’t call the man a fool because he was rich, or because he had been dishonest, or because he wasn’t frugal. The rich man was a fool because, even though he had everything he could want or need, he wanted more; he was caught up in what he owned and was not being rich toward God and others. And the meaninglessness of his riches was revealed when he died a short time later, and his material goods were no longer of any use to him.
While it is prudent to save, and the money we save isn’t evil in itself, Christians know that real wealth is not measured in dollars; it is being rich toward God. Therefore, we must resist becoming like the rich young ruler who put his faith and trust in his wealth rather than in God. His sin was not in being wealthy, but in making his wealth his God; his was the sin of idolatry. In his desire to become rich, he was trapped in his own “senseless and harmful desires,” which ultimately led him “into ruin and destruction” (1 Tim. 6:9).
The rich fool believed that he was the source of his wealth and that he had the right to do with it as he pleased. But the biblical frame of reference is that real wealth comes from God: “Both riches and honor come from You, and You reign over all. In Your hand is power and might; in Your hand, it is to make great and to give strength to all” (1 Chron. 29:12, ESV). Without the merciful kindness and goodness of God, we would have nothing.
While our efforts in the form of labor, diligence, discipline, and planning are vital, God alone is the sole source of all we have. As our Creator, our lives and everything in them is a gift from him. “Every good gift and every perfect gift is from above and comes down from the Father of lights” (James 1:17, ESV).
God defines wealth differently from the way we do. Monetary riches is one kind of wealth, but it is worldly wealth. Biblical wealth is the abundant blessings we receive from God through his Son, Jesus Christ. Even the poorest of men who knows God as his Savior is wealthy beyond measure compared to the rich man who does not know Christ. And many Christians who are “poor” by worldly standards in this life will be “rich” in the life to come (1 Tim. 6:19).
To those who aspire to become everyday millionaires, the Apostle Paul said this:
As for the rich in this present age, charge them not to be haughty, nor to set their hopes on the uncertainty of riches, but on God, who richly provides us with everything to enjoy. They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life. (1 Tim. 6:17-19, ESV).