Do You Need To Be A Genius To Be Rich?
Place your cursor over the double-underlined links to get details on special deals and services related to the topic. All information provided by Kontera.comI was studying the traffic data of my blog the other day and one particular search phrase caught my attention. Apparently, a visitor was able to find my website by asking Google, “Do you need to be a genius to be rich?”
That question got me thinking which eventually prompted me to start my own search for the answer. Fortunately, I found what I was looking for. But before I share what I discovered, I’d like you to ask yourself the same question and think about the answer. So in your opinion:
How important is intelligence in wealth accumulation?
We all know that some of the wealthiest people on earth are college dropouts. Personalities such as Bill Gates, Steve Jobs, Ralph Lauren, Michael Dell and Richard Branson, have shown the world that one can be rich without having a degree. Nevertheless, one could simply attribute their failure to finish formal education from economic and social circumstances and not because of low academic aptitude. And thus, we are left with still an unanswered question.
At the Center for Human Resource Research in Ohio State University, Jay Zagorsky had the same question in mind. He then conducted a study to find out how important intelligence is to financial success. In his paper entitled, Do Have To Be Smart To Be Rich? The impact of IQ on wealth, income and financial distress, he reveals his findings after following more than 7,000 Americans from their teen years to their early 30’s.
He gathered the financial status of these baby boomers by asking several questions about their credit history, monthly spending, accumulated assets and liabilities. Furthermore, these same group participated in an IQ test which covered word knowledge, paragraph comprehension, math knowledge and arithmetic reasoning. These information was then analyzed for correspondence. So what was his conclusion?
Intelligence provides more earning power but not necessarily more accumulated wealth. He further explains, “The smarter you are, the more income you have, but for wealth, there is no relationship.”
Zagorsky defines wealth as the difference between a person’s assets and liabilities. So, wealth is income plus home value plus investments and personal assets minus mortgages, credit card debt and other individual liabilities. In his study, he found out that a higher yearly income does not necessarily translate into higher wealth. In fact, people with slightly above average intelligence (105 IQ score) had an average net worth higher than those just a bit smarter (110 IQ).
“There are some very smart people who get into financial difficulties,” he notes. “Even smart people don’t save.” Moreover, he tried to analyze the data for variables like race, education, job status and even personal habits. Still, the gap between IQ and wealth remained the same.
So what does this mean?
Zagorsky concludes, “If you’re an individual with relatively low intelligence, you shouldn’t really believe that you’re handicapped in achieving wealth. Similarly, if you’re intelligent, you shouldn’t think you have an advantage in living the rich life.”
What’s your opinion on this topic? Please share them below as a comment. Furthermore, to receive updates on this study and other interesting articles about personal finance, subscribe to Ready To Be Rich.
Works Cited:
Zagorsky, Jay. “Do You Have To Be Smart To Be Rich?“. March 2007
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Photo courtesy of kodachrome kid
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Hi, my name is Fitz and this is my blog on personal finance.
Education + motivation (self and social) + goal-driven mindset can make us rich.. That’s how i see it (pero ako di pa rich, hehehe)..
kahit ikaw na ang pinakamatalino sa buong mundo but you don’t have the skills pra magamit ito e wala din.gaya ng mga nabanggit mong mga kilalang tao jan sa entry mo e ginamit nila ang utak at diskarte nila.kung wala ka interes sa ginagawa mo ay yun ang magiging dahilan ng downfall mo.kaya im ready to be rich!ahehehe!
@Joliber
Yes, a laser-point goal driven focus is important if one wants to be rich. Don’t worry, you’re not alone… I’m not yet rich myself.
Hopefully, when we get to retire before 40 (my personal goal), we’ll all meet each other abroad on a luxury cruise!
@itots
That’s true, much more than academic intelligence, it is important to have financial smarts and a passion for what you are doing. Almost all of the self-made rich people I know are into a business they really love.
And yes, with all the various income generating blogs that you have, I can attest that you are ready to be rich.
@fitz, don’t forget ambo!
I think you don’t need to be a genius to be rich, most of the business tycoons are not genius they are just wise. When I say wise, they are wise spender and wise investors. No matter how genius a person is if his palms are always open with regards to money, how could he earn that way? Money will just come and go..Anything left on his side? Nothing.. Avoid getting into debt
Live a simple life, and be wise spender and a wise earner!
Be Debt Free
Meron iba na mataas yung cost of living, tapos nawalan ng work, and hindi makapag-adjust, at parang nawalan ng self-control. Hindi naman masamang bumili but if they’re spending more than what they earn, lagot na.
Off topic: ikaw po ba yung magaling mag-chess yung nakipag-pustahan pa? Sori po, kasi parang kamuka nyo po. Thanks.
@DebtFreeChristian
Thanks for sharing your thoughts and I agree, we should avoid getting into bad debt.
@icezorg
Yes, people are usually not prepared when it comes to suddenly losing their jobs. That’s why it’s important to learn financial literacy. Anyway, I’m not so sure about that chess game you’re talking about. But I did write something about that here entitled, Checkmate.
been reading all your post, (added to “my favorites”)
Good topics… great blogs! you’re the best! cheers!
just got questions… who hosted your site? are u the one who made your site or via web builder?
i also want to have a website like yours… with a lot of ads. (passive income)? can u give us some advise? tnx
Thanks json! Why don’t you subscribe to my site through email so that you’ll receive a notice everytime I post new articles here. Don’t worry, you’ll receive no spam.
Anyway, my site is hosted at Protagonist Web Hosting Solutions. You can ask them how much a package will cost for you (domain name and hosting).
I use Wordpress.org as my blogging platform and this is one of the thousands of free customizable themes available. Just install it and voila, you have your website. So to answer your question, no I’m not the one who designed this website but I tweaked it to my satisfaction.
Lastly, I would suggest that you think about the level of commitment that you can dedicate to your website. This is a long term endeavor and not an overnight success. If you build a website / blog that offers genuine value to its readers, then money / advertisers will surely come.
Good luck and cheers!
Fitz,
Tagal na rin akong dropper mo pero ngayon lang ako magcocomment. Alam mo kapatid maraming factors ang contributors ng success. Success comes in many ways, although when we speak of material success (accumulation of wealth), being a genius in one area MAY not guarantee you success. At times we have to “feed the need” of the times. I know you got what I meant. Just like blogging, sometimes we have to write articles that make us money and not what makes us (the writers) happy and contented.
Take care and see you around.
Hi Jessie,
Yes I agree, if we want to be successful, then we should find a “need to feed”. Although sometimes we, as bloggers, do write off-topic articles (i.e., for SEO), but looking at it on a macro level - it still serves our end purpose, which is to be able to share to a wider audience our genuine thoughts and opinions. Thanks for finally commenting. I hope that there will be more.