Are you wondering what the truth is behind the super-rich?
We’ve all heard the stories of the super-rich living off their trust funds on their private islands. But these fanciful stories can’t be further from the truth in most cases.
Read on as we debunk these common myths about rich people to get to the truth.
Most Rich People Inherited Their Wealth
In Fidelity Investments’ 2017 survey, 88% of millionaires were self-made. Only 12% had inherited a large amount of their wealth (at least 10% of it).
Most of the wealthy people surveyed didn’t come from wealthy neighborhoods or have prestigious education. The majority have a college education and are either married or partnered. For more on inheritance though, check it out here.
They Made Their Money in the Tech Industry
While IT jobs have indeed produced millionaires overnight, it’s not the dominant industry. Most people who have over $1 million don’t work in social media or software. Some other businesses that produce millionaires include:
- health care
There’s also a healthy representation of self-employed professionals too. Doctors, lawyers dentists, and accountants all have good representations among millionaires.
It Was Blind Luck
If you want to see entrepreneurial success, there is some degree of risk involved. In this sense, self-employed millionaires seem to have taken that chance and come up lucky. But most millionaires aren’t lottery winners and don’t take big gambles on risky investments.
Instead, it’s about analyzing those risks and looking for opportunities. Often, they’ll test their ideas before they invest too much time and money. They have a realistic approach to investment ideas and that’s how they build wealth.
They Live a Luxurious Life
Ask most millionaires and they’ll admit they’re frugal with their money. Many don’t have a fancy mansion or luxury car. For most, they have a modest home that they don’t struggle to afford.
Their cars aren’t likely to be the latest model or year, or on an expensive loan plan either. Take Warren Buffett for example. He still lives in Omaha, Nebraska, in a house he bought for $31,500 in 1958.
They’re All Men
The split between men and women is actually pretty even here, but they have a different attitude to money. In a survey, male millionaires want to reduce debt and gain financial independence. Female millionaires are more interested in emergency expenses and saving enough to retire.
They Were the School Overachievers
While most rich people have a college education, many didn’t get the top grades. School rewards those people who play by the rules. The top-grade earners are often conscientious, responsible and go on to do well in their careers.
The people who go on to run the world are the ones that don’t always play by the rules. They’ll have a different approach and aren’t afraid to change the system for more success. Millionaires know that the biggest payouts don’t always come from rule-following.
Money Can’t Buy Happiness
We’ve all heard this saying before, and it’s easy to assume that all rich people must be miserable then. But this isn’t true at all. In a study, 82% of wealthy participants said they were happy. 94% of those who were happy said it was because they loved their job.
The Truth About Rich People You Need to Know
So, there you have it! Now you know these myths about rich people aren’t true, you have a better understanding.
While some will have inherited money, and others will get lucky there’s so much more to it. For most millionaires, it took a lot of guts to take the risks, and a lot of hard work to follow through on the successes.
If you enjoyed this article, check out our other blog posts for more.