Seven money myths about rich people
When I started my Rich Habits research, I had some entrenched negative beliefs about the wealthy that were inherited from my non-rich upbringing. When I began my Rich Habits research, I had some entrenched negative beliefs about the wealthy that I inherited from my non-rich upbringing.
As I learned more about the drivers behind wealth and poverty, however, my perception changed.
Instead of hating the rich, I grew to admire them. My Rich Habits books featured self-made millionaires who became my real-life heroes. Nada, zip, zero. The annual Wealth X survey seems to place the self-made percentage anywhere between 75% – 84%, depending on the year of the survey. According to the annual Wealth X Survey, the percentage of self-made people can range from 75% – 84% depending on the year. The vast majority of the wealthy are not born rich. Which, by the way, is a very good thing because it means most of the wealthy come from poverty or the middle-class.
Myth #2: Rich People Pay Less in Income Tax than Everyone Else
According to the IRS, the income tax rate for the top 1% of earners in the U.S. is 22.83% whereas, the top 50% of income earners in the U.S. pay 14.33%. The bottom half of American income earners pay only 3%.
The IRS collects 45.7% of their income tax from the top 1%. In essence, the top 1% of income earners in the U.S. pay 45.7% of the income tax collected by the IRS. Interesting, however, was that the other 92% of self-made millionaires acknowledged the importance of luck in the accumulation wealth. However, it was a different type of luck that I gave a name to – “Opportunity Luck”.
Opportunity Luck is a special, unique type of luck that is the byproduct of hard work, persistence, Rich Relationships and habits. The 92% of my Rich Habits Study participants never gave up on their goals, dreams or themselves. They persisted through great adversity, and sometimes even greater risk. They danced with a razor’s edge that separated them from failure. They survived until they could thrive. They survived until they could thrive.
Myth #4: The Rich Are Better Educated
Thirty-six percent of the self-made millionaires in my study never obtained a college degree.
Of those who got a college degree, 46% of them paid their own way through college and 23% of them went to college part-time, while they worked.
Myth #5: Rich People Are Not Charitable
Sixty-two percent of the wealthy in my Rich Habits Study said they contributed 10% or more of their net income to charity. Many of the charities they supported included local, community food banks, homeless shelters, means-based scholarship programs and organizations that benefited poor children.
And they didn’t stop there.
Seventy-two percent volunteered five hours or more a month for some charity. Their volunteer work included helping to run the charities, either through board membership, or as part of the various committees.
Myth #6: Money Does Not Buy Happiness
Eighty-two percent of the wealthy in my study said they were happy.
According to my analysis of the rich, they had 58% fewer problems than everyone else. When you are rich, you can eliminate much of the stress everyday problems cause and thus, eliminate the unhappiness associated with those problems.
When you are poor, everyday problems, like repairing a car, often linger and create long-term or chronic stress, which not only derails happiness but that chronic stress impairs the immune system, inviting disease, illness and poor health.
Myth #7: Rich People Live Extravagant Lifestyles
Whenever I thought about the extravagant lifestyles of the wealthy, I envisioned private jets, yachts, luxurious vacations, expensive cars, etc.
Another myth.
Fortunately, I gathered a great deal of data on the spending habits of the rich. I gathered a lot of data on the spending habits of the rich. Here are some examples:
67% of them said they were frugal.
8% of them still shop at goodwill.
30% clipped coupon.
92% of wealthy people never vacationed in a yacht.
55% spent less than $6000 a year for vacations. Only 23% of wealthy people admitted to spending more than $10,000 on vacations each year. The rich are wealthy for many reasons. And most of those reasons have to do with hard work, persistence, taking educated risks, good habits, good decision-making, being frugal with their money, living below their means and building strong relationships with decision-makers who can open doors with a phone call.
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