How to Become a Millionaire on a Swiss Average Salary
June 2, 2025
7 min read
arvy's Teaser: When you picture a millionaire — what do you see? Ferrari, penthouse, Rolex? The book The Millionaire Next Door proved otherwise: most millionaires drive used cars, live in ordinary neighbourhoods, and earn no exceptional salary. They simply did one thing differently — started early, invested consistently, never stopped. In Switzerland, with a median wage of CHF 6,788 gross per month, becoming a millionaire is no fantasy. It's mathematics. Here's the complete calculation.
The Starting Point: A Completely Normal Swiss Life
Forget the clichés. Let's take a real situation. You earn the Swiss median wage: CHF 6,788 gross/month (CHF 81,456/year, FSO). No bonus, no stock options, no side hustle. Just the average.
After deductions (AHV/AVS, pension fund, taxes) you're left with roughly CHF 5,200–5,500 net per month. From that, the following goes out:
Even on the median wage, CHF 1,000–2,000 per month is left over. Not because you're living on the edge — but because you're intentional about your money. And that amount is enough. More than enough.
The Mathematics: When Do You Become a Millionaire?
Look at that last column. At CHF 1,000/month, CHF 640,000 comes from compounding — that's 64% of your final wealth. You contribute CHF 360,000 of your own money, and compounding adds almost double on top. Your money works harder than you do.
"Becoming a millionaire on an average salary isn't a fantasy. It's mathematics plus patience plus a savings plan."
The Cost of Waiting: By Age
The earlier you start, the easier it gets. But even at 40 the million is reachable — it just costs more:
The cost of waiting is brutal
At 25: CHF 500/month is enough. At 45: CHF 2,165. Each decade of delay raises the required monthly savings by roughly 40–50%. The difference between starting at 25 vs. 45? Twenty years — and around CHF 760,000 in foregone compounding returns.
What Real Millionaires Do Differently: 5 Lessons from The Millionaire Next Door
The book The Millionaire Next Door by Thomas J. Stanley and William D. Danko analysed over 20 years of data on American millionaires. The result is surprising: most are not heirs, tech founders, or celebrities. They're small business owners, engineers, teachers — people on normal salaries who consistently did five things differently.
1. Live Below Your Means
The book's central insight: wealth is built not by spending big, but by spending consciously. Most millionaires in the study drove used cars, lived in average neighbourhoods, and owned no expensive watches. Their wealth was invisible — because it was invested, not worn on their wrist.
Stanley and Danko distinguish two types: PAW (Prodigious Accumulator of Wealth) and UAW (Under Accumulator of Wealth). Both earn the same. But the PAW has a net worth far above the average for their income bracket. The UAW spends everything — and despite a high income, has little saved. The difference isn't the salary. It's the habits.
The Swiss Version
In Switzerland the temptation is particularly strong: high salaries breed high expectations. Your colleague drives a BMW, so you need at least an Audi. Whoever resists, wins. Lifestyle inflation is the single biggest enemy of wealth building. Earning more doesn't mean you have to spend more.
2. Save and Invest Consistently
The millionaires in the study saved 15–20% of their income — first, before anything else was paid. They paid themselves first. Automatically. Every month. And they invested those savings in equities, real estate, or retirement accounts — not in a savings account.
In Switzerland: a savings plan from CHF 1,000/month makes you a millionaire in 30 years. Even CHF 500 is enough — you just need slightly more patience (40 years). The key: automate. Set up the savings plan on the 1st of the month and never think about it again.
3. Avoid Status Symbols
The book reveals a remarkable finding: the people who look the wealthiest often aren't. And those who are, you can't spot. Your neighbour with the Porsche might have CHF 30,000 in the bank. Your neighbour with the Skoda might have CHF 800,000 in their portfolio.
The explanation is psychological: we buy status symbols to impress others. But the people we want to impress aren't paying attention — they're too busy financing their own status symbols.
"If you spend your money to show people how rich you are, you'll soon have less money and need to spend even more to keep up the illusion." — paraphrased from Morgan Housel
4. Invest in Financial Education
The millionaires in the study spent more time on financial planning than on consumption. They understood taxes, compounding, risk and diversification. In Switzerland, that means concretely:
Understand your pension fund statement. Use Pillar 3a (CHF 7,258/year tax-deductible). Know that capital gains are tax-free. Use the investment calculator. Read this blog. The biggest drag on returns isn't the market — it's ignorance.
5. Think Long-Term and Like an Owner
Many millionaires in the study were entrepreneurs or self-employed. But the lesson applies to employees too: take ownership of your finances. Diversify your income. Invest in your skills. And above all: think in decades, not months.
The million doesn't come overnight. It comes through 20–30 years of consistent action. The most boring strategy is the most profitable one.
The Turbo: Pillar 3a + Free Investing in Parallel
The smartest Swiss millionaire candidates use both channels simultaneously:
The Swiss Millionaire Roadmap
Channel 1 — Pillar 3a: Maximise the contribution (CHF 7,258/year = CHF 605/month). Save on taxes. Keep it invested — don't leave it in a savings account.
Channel 2 — Free investing: Everything above the 3a. CHF 400–1,400/month additionally. No tax advantage, but no lock-in period — available at any time.
Together: CHF 1,000–2,000/month — realistic on the median wage if you budget consciously.
Bonus effect: The 3a tax saving (~CHF 2,540/year at a 35% marginal tax rate) goes straight into free investing. That's an extra CHF 210/month — essentially free.
"But What About Inflation?"
Fair question. CHF 1 million in 30 years won't buy the same as today. At 1.5% inflation, CHF 1 million in 30 years has a purchasing power of roughly CHF 640,000 in today's francs (1,000,000 ÷ 1.015³⁰ ≈ 640,000). Still a substantial fortune — but not a million in today's terms.
The solution is built in: your savings amount grows over time. If you start at CHF 1,000/month and increase by 3% each year (through pay rises and career progression), you'll reach the inflation-adjusted million considerably faster. And don't forget: your pension fund capital and AHV/AVS come on top of that.
The 5 Principles — Applied to Switzerland
arvy's Book Club: The Millionaire Next Door
📚 The Millionaire Next Door
by Thomas J. Stanley & William D. Danko
The book that changed everything we thought we knew about wealth. Based on 20 years of research and thousands of interviews with American millionaires. The surprising finding: wealth has less to do with income than with habits. Most millionaires are not heirs, celebrities, or CEOs — they are disciplined savers who invested consistently.
The 3 most important lessons:
1. Income ≠ wealth. Many high earners are asset-poor because they spend everything. Many average earners are wealthy because they save and invest.
2. Invisible wealth. Real millionaires are invisible. They drive Toyotas, live in ordinary houses, and don't wear a Rolex.
3. Discipline beats talent. Building wealth is not a sprint — it's a marathon of habits that compound over decades.
English Version (Amazon) · German Version (Amazon)
→ Full book review on arvy
Conclusion: You Don't Need a Higher Salary. You Need an Earlier Start.
Becoming a millionaire on the Swiss median wage is no fantasy, no clickbait, no motivational coaching. It is simple mathematics.
CHF 1,000/month. 6% return. 30 years. CHF 1,000,000. Of which CHF 640,000 is a gift from compounding. Tax-free in Switzerland.
The five principles from The Millionaire Next Door confirm what the mathematics shows: wealth is based on habits, not income. Live below your means, save consistently, invest automatically, educate yourself, think long-term.
The only factor that truly matters: when you start.
"You don't need a higher salary to become a millionaire. You need a savings plan and an earlier start than most."
Your path to a million starts with CHF 1.
Set up a savings plan. Pillar 3a and free investing. Quality investing in the world's 30 best companies. Compounding does the rest.
Start savings plan | Open Pillar 3a» Run the numbers yourself: Investment Calculator
This article was written by Thierry Borgeat, Co-Founder of arvy, and reviewed by Patrick Rissi, CFA, and Florian Jauch, CFA. All three invest their own money in the arvy fund.
Disclaimer: This article is for general information purposes only and does not constitute personal investment advice. Calculations are based on a 6% return p.a. and are for illustrative purposes. Median wage data based on FSO 2022. Past performance is not an indicator of future results. arvy is an asset manager supervised by FINMA.
Disclaimer: This article is for general information purposes only and does not constitute personal investment advice. Calculations are based on a 6% return p.a. and are for illustrative purposes. Median wage data based on FSO 2022. Past performance is not an indicator of future results. arvy is an asset manager supervised by FINMA.
