Millionaires' Habits: Where They Keep Their Money.

Millionaires keep a significant portion of their wealth in cash, with 24% in 2023, according to CNBC's Millionaire Survey. While a checking account may not be a primary place for millionaires to store their wealth, it can be a useful tool for managing everyday transactions. The amount of money kept in a checking account varies by individual, but it is rare for a millionaire to keep more than $250,000 in a single account due to FDIC insurance limits.

Title: Millionaires' Financial Habits: Keeping Cash in Checking Accounts

According to CNBC's Millionaire Survey, a significant portion of millionaires' wealth is held in cash, with 24% in 2023 [1]. While checking accounts are not the primary storage for their wealth, they serve as a practical tool for managing everyday transactions. The amount of money kept in a checking account varies by individual, but it is uncommon for a millionaire to keep more than $250,000 in a single account due to FDIC insurance limits.

Millionaires tend to avoid keeping large amounts in checking accounts due to the low interest rates and the risk of inflation. Instead, they prefer to invest their money in appreciating assets such as real estate, stocks, and bonds. However, having a checking account allows them to manage their daily expenses and maintain liquidity.

One of the key habits of millionaires is to avoid spending their entire paycheck and instead invest money they aren’t using. This discipline helps them grow their wealth over time. For example, investing $350 a month into a 401(k) plan over a 40-year period at an 8% return could accumulate nearly $1.1 million [1].

While checking accounts are not the primary storage for millionaires' wealth, they play a crucial role in managing their finances. Having a checking account allows them to maintain liquidity and manage their daily expenses. However, it is essential to remember that the interest rates on checking accounts are low, and the risk of inflation can erode the purchasing power of the money kept in these accounts.

In conclusion, while checking accounts are a useful tool for managing everyday transactions, millionaires tend to keep a significant portion of their wealth in investments. The key to growing wealth is to avoid spending the entire paycheck and invest money that is not being used. Having a checking account allows millionaires to maintain liquidity and manage their daily expenses, but it is not the primary storage for their wealth.

References:
[1] https://finance.yahoo.com/news/almost-every-millionaire-america-5-141000448.html