In 2004, I started researching why the wealthy were wealthy and the poor were poor. When I began mine Research on Rich HabitsI had some deeply rooted negative beliefs concerning the wealthy that I inherited from my non-rich upbringing.
However, as I learned more concerning the causes of wealth and poverty, my perception modified.
Instead of hating the wealthy, I started to admire them. The self-made wealthy I wrote about in my Rich Habits books became real heroes for me.
Here are 7 money myths concerning the wealthy that turned out to be false:
Myth #1: Rich people inherited their money
In my study, 76% of the wealthy people in my study inherited nothing. Nada, zip code, zero. Of this 76%, 31% got here from poor households and 45% got here from middle class households. Wealth’s annual survey
Only 24% of the wealthy in my study grew up in wealthy households and inherited their wealth. So no – the overwhelming majority of wealthy individuals are self-made. Which is a superb thing, by the way in which, since it means that the majority wealthy people come from poverty or middle class backgrounds.
Myth #2: Rich people pay less income tax than everyone else
According to the IRS, the income tax rate for the highest 1% of earners within the US is 22.83%, while the highest 50% of earners within the US pay 14.33%. The bottom 50% of income earners within the US pay just 3%.
The top 1% of income earners within the US pay 45.7% of the income tax collected by the IRS. In fact, 1% carries 46% of the bucket for the opposite 99%.
Myth #3: The wealthy are only lucky
Only 8% of self-made millionaires in my study said they amassed their wealth through sheer luck. But interestingly, the remaining 92% acknowledged that luck was crucial to wealth accumulation. However, it was a distinct form of luck that I gave a reputation – “opportunity luck”.
Casual luck is a special, unique form of luck that’s the byproduct of labor, persistence, wealthy relationships and habits. That’s 92% in mine Rich Habits Study Just never quit on yourself, your goals and your dreams. They withstood enormous adversity and sometimes great risks. They danced on a razor blade that separated success from bankruptcy. They refused to give up. They survived until they might thrive.
Myth #4: The wealthy are higher educated
36 percent of self-made millionaires in my study never earned a school degree.
Of those that earned a school degree, 46% self-financed their education, and 23% of them attended college part-time while working.
Myth #5: Rich people should not charitable
62 percent of the wealthy in my Rich Habits study said they gave 10 percent or more of their net income to charity. The charities they supported included local people food banks, homeless shelters, income-based scholarship programs and organizations that benefited poor children.
And they didn’t stop there.
72 percent volunteered five hours or more per thirty days for a charity. Her volunteer work included assisting with the governance of the charities, either through membership on the board or as a part of the varied committees.
Myth #6: Money doesn’t buy happiness
82 percent of the wealthy in my study said they were glad.
According to my evaluation of the wealthy, they’d 58% fewer problems than anyone else. If you might be wealthy, you’ll be able to eliminate much of the stress that on a regular basis problems cause and subsequently eliminate the unhappiness related to these problems.
When one is poor, on a regular basis problems corresponding to repairing a automotive often persist and result in long-term or chronic stress, which not only affects happiness, but chronic stress also affects the immune system and results in illness and poor health.
Myth #7: Rich people live extravagant lifestyles
Whenever I believed concerning the extravagant lifestyles of the wealthy, I imagined private jets, yachts, luxurious vacations, expensive cars, etc.
Another myth.
Luckily, I’ve collected lots of data concerning the spending habits of the wealthy. Here is a few of that data:
- 67% said they were careful with their money.
- 8% continued to buy at Goodwill stores.
- 30% clipped coupons.
- 92% have never vacationed on a yacht.
- 55% of the wealthy spent lower than $6,000 a 12 months on their vacations. Only 23% reported spending $10,000 or more on their annual vacation. Most of this 23% were those that inherited their wealth.
- 87% said they’d never bought a brand new luxury automotive of their entire life.
- 44% said they buy a used automotive every five years.
Most in our country grew up poor or middle class and much too many have been indoctrinated with the above money myths concerning the wealthy.
The fact is that the wealthy are wealthy for a lot of reasons. And most of those reasons must do with labor, persistence, taking thoughtful risks, good habits, good decisions, being frugal with money, living inside your means, and constructing strong relationships with decision makers who can open doors Phone call.
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