A high net worth individual

Is the millionaire term changing? Is a millionaire measured as an individual with one million dollars in assets or an annual income of one million dollars? Some seem to think so but cash flow and assets can be misleading as a short-term contract or special payment such as a bonus could make a person a millionaire for just a year.

Under such a definition despite the fact that they invested that sum and receive a return on their investment. A 6% return on a million dollars isn't a bad income after all - an average Australian income falls within that range.

For me, I suggest a millionaire is an individual possessing a net worth of over one million dollars and that includes the primary residence. We do need a caveat on that though, because we need to ensure a common base and the USD is still the currency of choice for measuring wealth.

The financial services industry definition differs as it excludes the value of the family home instead defining a millionaire as an individual with at least one million dollars of investable assets - fair enough.

That changes things slightly, a million dollars of investments is a far tougher club to become a part of as the sole purpose of the financial services industry is to get their hands on your hard earned dollars to earn fees from.

The Swiss bank and wealth management business Credit Suisse uses a less stringent definition; they believe a millionaire is anyone who has assets exceeding one million dollars. That definition includes the family home, superannuation, life insurance, stamps, wine or art collections and really anything of value.

The Credit Suisse Global Wealth Report estimated that in mid 2010 there were 24.2 million individuals meeting their criteria worldwide measuring approximately 0.5% of the world's adult population.

Merrill Lynch, the wealth management division of the Bank of America also defines a millionaire as an individual with one million dollars of investable assets excluding their family home. Needless to say, as an American banking powerhouse, they would measure wealth in USD and by their measure.

High net worth individuals account for less than 2% of the US population. Capgemini, the French multinational consulting, technology and outsourcing firm reports in their wealth report that the Asia-Pacific region has 5.13 millionaires up 9.4% on previous years - impressive.

According to the Capgemini consulting definition, just a paltry 16% of high net worth individuals inherited their wealth informing us that 84% actually earned their own money with entrepreneurial endeavors accounting for nearly half of this earning potential.

I'm guessing the average millionaire is extremely frugal with their money; after all, they actually earned it. People aspiring to become millionaires believe the Hollywood hype and really want to spend a million dollars to live the high life.

In the consumer driven marketplace, such short term thinking is misplaced instead believingshort term consumption in the answer. They should be thinking about  investing their money and joining this exclusive club for the long term. Thinking like a millionaire and spending like a millionaire are two totally different mindsets.