Welcome aboard, folks! We’re about to embark on a myth-busting journey that will blow your socks off. You know those ‘wealth myths’ you’ve been hearing since you were knee-high to a grasshopper? Yeah, the ones that make you think you need a golden goose laying diamond eggs to be wealthy. Well, it’s time to break out the truth serum.
Get ready to plunge into 15 outrageously bogus, ridiculously farcical ‘wealth myths’ that have been circulating for ages. Fasten your seatbelts because we’re about to demolish some illusions, and have an absolute blast while doing it!
“Money Can’t Buy Happiness”
Although money can’t buy eternal bliss, a study based on data from a diverse cross-section of the U.S. population (N = 12,291) reveals a fascinating insight: higher income is linked to a reduced experience of daily sadness.
“All Rich People Inherited Their Wealth”
Not quite. Did you know? According to a fascinating 2019 study published by Wealth-X, a whopping 68% of individuals with a net worth of $30 million or more achieved their riches through their own hard work.
And that’s not all! Another captivating study by Fidelity Investments revealed that an impressive 88% of all millionaires are self-made, proving they didn’t simply inherit their wealth. Seeing the power of determination and entrepreneurship in action is truly inspiring!
“Money Leads to Corruption”
Money doesn’t corrupt; it’s the individual’s attitude towards it. Several studies say countries with lower GDPs often have higher corruption rates.
“Rich People Are All Work and No Play”
Wealthier individuals often have more leisure time because they can afford to delegate tasks. Many wealthy individuals are well-rounded and enjoy a full, balanced life. They take time for leisure activities, travel, hobbies, and family, bringing additional joy and contributing to their overall well-being.
“Wealth Equals Success”
Success is subjective. There’s no one-size-fits-all definition of “success.” Each person has a unique vision of what it truly means to feel fulfilled.
“Wealthy People Don’t Pay Taxes”
It’s a common misconception. In 2020, the latest year with available data, the top 1 percent of income earners raked in a staggering 22 percent of all income and shouldered a whopping 42 percent of all federal income taxes—that’s more than what the bottom 90 percent combined contributed (37 percent). Talk about a tale of the haves and have-nots!
“The Rich Keep Getting Richer, the Poor Poorer”
This is a simplification. This is an often-quoted statement, but it’s not necessarily true. Inequality of wealth and income has steadily declined in the US since World War II, though the trend slowed down in the 2000s due to globalization, automation, and other factors.
But remember: economic opportunity depends on many external forces outside one’s control. Everyone deserves a fair share of building their own success story.
“Money Will Solve All Problems”
Quick fixes, maybe, but not all. A CNBC report showed that lottery winners are actually more likely to declare bankruptcy within three to five years than the average American.
It’s a surprising fact, highlighting the importance of financial literacy and responsible money management.
“Wealth Leads to Happiness”
Most people assume that money is the ultimate source of happiness, but this belief often comes with a false sense of security. After all, wealth can only do so much to prevent loneliness and insecurity.
So, while having financial security is important, it should not be at the expense of your well-being or mental health.
“You Need Money To Make Money”
Bootstrapping, anyone? According to Kauffman’s State of Access to Capital report, 83% of entrepreneurs bypass bank loans and venture capital (VC) when embarking on a business venture.
In fact, the 2016 Annual Survey of Entrepreneurs revealed that a mere 0.5% of entrepreneurs were fortunate enough to secure VC funding to kickstart their entrepreneurial journey.
“Rich People Are Greedy”
Multiple philanthropic efforts have debunked this stereotype. The Giving Pledge, for instance, is a commitment by the world’s wealthiest to give away the majority of their wealth.
“Rich People Are Smarter”
Intelligence isn’t exclusive to the rich. According to ScienceDirect, the findings from the regression analysis reveal an intriguing aspect: there seems to be no statistically distinguishable connection between IQ scores and wealth.
However, the relationship with IQ scores takes on a fascinating quadratic shape regarding financial distress, like struggling with bills, facing bankruptcy, or hitting credit card limits.
“Rich People Don’t Have Problems”
Money can’t buy immunity from life’s ups and downs. Mental health, for instance, doesn’t discriminate based on wealth.
“The Rich Don’t Work Hard”
This one’s a myth, too. Did you know? According to a fascinating study by Barclay’s Wealth in 2010, 54% of millionaires expressed their desire to keep working even in retirement. Talk about a passion for success that knows no bounds!
“Wealth Can Only Be Achieved Through Luck”
Skill and perseverance play their roles, too. According to a captivating new report from Wealth-X, it turns out that the vast majority of individuals who possess substantial wealth have built it from scratch themselves. How impressive is that?
At Savvyolu, we believe that hard work pays off. We strive to be a resource for anyone wanting financial freedom through guided investment strategies tailored to meet individual needs. Let us help you write your own success story!
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If there’s one person who knows a thing or two about money, it’s the ‘Oracle of Omaha,’ Warren Buffet. With a net worth that’s hard to comprehend, he’s made some pretty intelligent money moves in his time. So, when he talks about how poor people waste their money, it’s an economic lesson worth paying attention to. Join and discover 12 things Warren Buffet says poor people waste money on.
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You Only Think It’s True: 12 Myths Costing You Time and Money
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