COMMENT
Why Millionaires Need To Be 'Thrillionaires'

A while ago I wrote an article entitled Why A Million Is Not Enough and I'm not surprised to report that Coutts & Co - banker to the Queen - agrees. A million squids is no longer enough to ensure a millionaire's lifestyle.

According to Coutts, the real value of £1 million has fallen so dramatically over the last 25 years that it no longer affords the luxurious standard of living it once did. Inflation has played its part, as have soaring house prices. In 1980, the average property cost £25,581 compared to £172,788 now - a massive increase of 575%.

It depends what one expects from the dream millionaire lifestyle, of course. Coutts says it consists of a luxury 5-bedroom house with 2 staff, 2 luxury cars, an apartment and yacht in the South of France and being able to dine out twice a week and take two luxury holidays abroad each year.

To afford that these days - and comfortably give up work - they reckon you'd now need an average of £2.6 million in cash and assets depending on where you live. If you chose to live the high life in London, £3.48million would be needed (in 1980 the equivalent would have cost just £451,000 - more than seven times less).

A million pounds is obviously still a sizeable amount of money though. And, if it's invested correctly, it can still afford a high standard of living and provide financial security in later life.

However, it would mean setting one's sights a little lower. And being content with a cleaner on an hourly rate rather than a full-time housekeeper, driving a top end Honda Accord rather than an E class Mercedes and renting a yacht occasionally rather than buying one.

But it's not unachievable. Learn to budget, shop around for the best deals, borrow sensibly and save and invest wisely and you could become a millionaire in your lifetime.

But if you do want to own that apartment and yacht in the south of France, you'll have to try rather harder!

Find out how to Make A Million.