Wealth Survey: Discover what The Wealthy Have in Common

Most people (including me) want to be wealthy. But, we set out to achieve this goal in different ways. Yes, we all venture out into different roads, in search of that "brass ring." Once in a while, it's smart to pause and evaluate our progress. In this way, we would ascertain whether we're on the right track or not. Since we share the same goal, I thought a wealth survey would be helpful.

A survey was given to 5,000 people. The questions in the survey were divided into 4 categories:

• Financial attitude and behaviours
• Goals
• Personality
• Non-financial behaviors

The responses to all the questions asked were used to map out the difference between the wealthy and those at the bottom of the economic ladder. The responses to the questions revealed that there were 4 main economic groups of people in the U.S.:

• The wealthy (3% of the population)
• The financially comfortable (27% of the population)
• The paycheck-to-paychecks (54% of the population)
• The further-in-debtors (15% of the population)

Permit me to call the bottom group - "broke." However, it doesn't mean the paychecks-to-paychecks are safe.

That said. According to the survey, 20 factors distinguish the wealthy from the broke and everyone else. The following factors help the wealthy climb to the top of the economic ladder:

• They have reduced outstanding debt
• They have invested for retirement
• They feel stocks are worth the risk
• They save regularly for emergencies
• They devote money to personal savings each month

• They aim to retire comfortably
• They want to be financially comfortable during their working years
• They always knew what they wanted to do
• They made it a goal to accumulate $1 million
• They want to own a home

• They're confident
• They're happy
• They're optimistic
• They're leaders
• They're competitive

• They have a college degree
• They socialize with friends once a week
• They read newspapers regularly
• They're married
• They exercise at least 2 to 3 times a week

The survey reveals that you need only ten (10) of the above factors to be financially comfortable and twelve (12) to be wealthy. Is that too much to ask?

Before you move on to another article on this blog or before you quit, endeavor to sincerely grade yourself, based on the above factors. In this way, you'd know what needs to be done in order to move up the economic ladder. Depending on your present position on the ladder, movement can either be from broke to pay-check-paycheck, or from pay-check-paycheck to financially comfortable (this is alright) or from financially comfortable to wealthy (highly recommended). Note that I do not completely rule out the possibility of a reverse movement.

More information about the survey can be found in the book entitled, The Difference: How Anyone Can Prosper in Even the Toughest Times by Jean Chatzky.

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The Poor and the Middle Class Povery Trap

I have often wondered why the poor remain poor and the middle class remain, socio-economically, between the poor and the wealthy.

Growing up in a middle class family, I watched my parents work very hard to break the glass ceiling. Despite their hard work, our standard of living never improved. Were they working hard to secure a place in the middle class? Is there a poverty trap for the poor and the middle class?

After a lot of reading and research, I realised that the poor and the middle class are trapped in poverty by the things they buy. On payday, the poor and the middle class spend their money on things that don't generate any income. Hence, they depend on one source of income - usually a job.

The poor spend money on inexpensive things that they don't need to survive. They buy "stuff" that don't add real value in their lives. Their income does not generate any income. Consequently, they're trapped in poverty by the things they buy. Simply put, they've not mastered the wealth creating formula.

People in the Middle class have the same delimma. These are people society mistakenly thinks are rich. They earn good money from their jobs. Some even earn up to 6 figure incomes and bring home a lot of money on payday. However, just like the poor, they're trapped in a life of struggle by the things they spend their money on. When the middle class go shopping, they buy things that don't generate any income (just like the poor). They spend their money on things like cars, boats, credit card debts, mortgage on the lovely large house. After all their expenses, they're left with no disposable income and MUST go back to work in order to maintain the lifestyle they have designed for themselves.

No doubt, the poor and the middle class are trapped in poverty and a life of struggle. All their income is dependent on their personal effort and they must exchange their time for money - money they spend buying things that don't generate any income. Worst of all, if the poor and the middle class don't go to work, they don't make any money. The things they buy trap them in the middle class.

The wealthy don't buy "stuff" and things that don't generate income. They're constantly looking for opportunities to invest and generate more money. They've mastered the wealth creating formula and fully understand the concepts of assets and liabilities. They know a job alone cannot make it happen. The wealthy spend money on assets - things that generate income. Consequently, they make more money and get richer. It's not a mystery.

In a nutshell, the poor and the middle class are trapped in poverty and a life of struggle by one thing - MINDSET. With a change in mindset, the glass ceiling would be broken and more and more people would become financially free and wealthy.

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Don't Try to Look Wealthy; Be Wealthy!

Nowadays, many people seem to have forgotten what it means to be wealthy and what living the good life is all about. More and more people tend to live a "lobster lifestyle on a tuner fish budget."

As a kid, I used to think the good life constitutes living in a big house, driving a Mercedes Benz (I love the brand - Mercedes Benz), being dropped off and picked up from school, having a personal driver, having a maid, you name it. Growing up in Africa, I never included things like a luxurious yacht, a summer cottage, a convertible BMW for the summer. But now, after all the traveling and exposure to different cultures and ways of life, all the above mentioned, are included in my definition of the "good life". What's your definition of the good life?

Many people want to be wealthy. This is goo! I'm an advocate for wealth because I believe it would set a people free. What I don't support is the quest to become wealthy for the wrong reason - to impress. Wanting to become rich to impress others has landed many people into trouble. Besides, it's one of the major causes of today's global economic meltdown.

I used to admire people living the "good life" and assumed they were successful. However, a closer look revealed that many are in debt of over 50% of their gross income and have plenty of credit cards and student loan payments. In most cases the car is leased. As a matter of fact, many people living the "good life" cannot write a check with their own money. They live a life of struggle and have borrowed money to look and feel rich. Is this the good life? Is the good life a myth or a reality?

There's an unbelievable amount of wealth in the world but the majority of people in the world are not wealthy. In the U.S., for example, nearly half of the wealth is owned by less than 5% of the population. Don't get me wrong, many people make good money. However, they still live paycheck to paycheck due to misplaced priorities. All the money they make is invested on looking wealthy. As if this is not enough, saving has become an illusive concept. Statistics show that in America, for every dollar earned, $1.22 is spent. Very few people invest money in building true wealth. Does this ring a bell?

The celebrity culture today has led many ordinary people to the wrong direction. We see the celebrities living the good life. What we don't see is the hard work and investments behind the scenes. The picture many of us see and copy is - EXTRAVAGANCE. This has distorted the view of what success is all about.

Most (if not all) wealthy people are investors. They invest in income generating opportunities. An investor may never realise a hugh salary, but make no mistake, the cash flow is very significant and that's what wealth is all about. There're many routes to wealth. You won't find them unless you're open to hearing about them. Once you find them, make sure you read the map before you venture out. The bottom line is, financial independence is more important than displaying high social status. Forget looking wealthy; be wealthy!

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