Billionaires earn in minutes what most workers make in a lifetime.
But just how wide is that gap? If you’ve ever wondered what it would take for an average American to reach billionaire status while earning minimum wage, the math is mind-bending.
Even with full-time hours and perfect savings habits, the timeline stretches beyond imagination.
Here’s how long the average American would have to work minimum wage to have a billion dollars.
The National Minimum Wage: Where the Math Starts
The federal minimum wage has been stuck at $7.25 an hour since 2009, according to the U.S. Department of Labor. That’s $15,080 a year if you work full-time, including no days off, no vacations, no sick time.
Even if you saved every penny, it would take more than 66,000 years to hit the $1 billion mark. For perspective, that’s longer than modern humans have walked the Earth. And that’s before taxes, rent or your morning coffee.
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What Makes It Impossible
Even if you could work nonstop for 66,000 years, reality would never let you get close. Here are a few key factors influencing that outcome:
- Inflation: Prices rise an average of 3% a year, according to the U.S. Bureau of Labor Statistics (BLS). That means every dollar you earn loses purchasing power over time. In 66,000 years, that billion would be worth next to nothing, the equivalent of a few pennies in today’s money.
- Taxes: Minimum-wage workers still pay Social Security and Medicare, roughly 7.65% off every paycheck, according to the Peter G. Peterson Foundation. So that $15,080 annual income becomes about $13,900 take-home, pushing your billion-dollar finish line even farther away.
- Cost of Living: The average American household spends nearly $77,280 a year, according to the BLS. That includes everything from rent and groceries to healthcare and gas. Compare that to a full-time minimum-wage income of just $15,080, it’s barely enough to cover two months of basic expenses. Saving your entire paycheck isn’t just unrealistic; it’s impossible in the real world.
How Billionaires Actually Make Their Money
Here’s the catch: Billionaires don’t earn their fortunes through hourly pay; they grow them. Most of their wealth comes from owning assets that increase in value, stocks, real estate and private companies, not from wages.
According to the Federal Reserve’s Distributional Financial Accounts, the top 1% of U.S. households hold nearly half of all corporate equities and mutual fund shares, while the bottom 50% own about 1%. In other words, the people who already have wealth are the ones whose money keeps multiplying.
Meanwhile, the federal minimum wage hasn’t increased since 2009, even as billionaire wealth has soared. It’s not about working harder; it’s about owning the things that earn money while you sleep.
What This Really Means for You
Sure, you’ll never work your way to a billion dollars, but you don’t have to. The goal isn’t billionaire status; it’s financial stability that grows over time.
Start with what’s in your control:
- Save and invest early: Putting even $100 a month into a low-cost index fund can grow into six figures over a few decades, thanks to compounding.
- Focus on ownership: Whether it’s a retirement account, a side business, or real estate, owning assets, not just earning wages, is how wealth builds.
- Build financial literacy: Understanding how money grows, and how to make it work for you, is one of the strongest long-term advantages anyone can have.
You may not earn billions, but consistent saving, smart investing, and a little financial know-how can help you build a life that feels secure and abundant.
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This article originally appeared on GOBankingRates.com: Here’s How Long the Average American Would Have To Work Minimum Wage To Have a Billion Dollars
