Skip to main content

Do You Want To Get Rich?

Here's how...and it is NOT what you think.

As of 2009, the IRS did a study on how the 400 highest income earners made their money (if you want to go to the source, you can review it here: 400 Individual Tax Returns Reporting the Largest Adjusted Gross Incomes, an annual report issued by the IRS). 

To give you the Reader's Digest version, in 2009 $77.4 million got you in the club; but the average earnings were $202.4 million, a lot of money but well down from the $334.8 million average in 2007.  In interesting thing is WHERE they made their money:
  • Wages and salaries:  8.6%
  • Interest: 6.6%
  • Dividends: 13%
  • Partnerships and corporations:  19.9%
  • Capital gains: 45.8%
Yep, almost 50% was made in capital gains...investing in theirs or others companies. Diving deeper there can be seen obvious conclusions:
  • Working for a salary won't make you rich.
  • Neither will making only safe "income" investments.
  • Neither will investing only in large companies.
  • Owning a business or businesses, whether in part or partnership, could not only build a solid wealth foundation but could someday...
  • Generate a huge financial windfall.
The data clearly supports the last two points. Clearly, getting rich--in monetary terms--is the result of investing in yourself and others, taking risks, doing a lot of small things right, and hopefully doing one big thing really, really right, and of course...being lucky never hurts!  Hopefully you can achieve some other lofty goals along the way--because then, even if you do not end up rich, you will still be wealthy.

Comments

Popular posts from this blog

The Moldy Middle

While taking statistics during my quest to get an MBA and while earning my engineering degree, the professors always emphasized the importance of finding the statistical mean of any population by using the Central Mean Theorem (a.k.a the highest point of the Bell Curve).
As an engineer, this was essential in order to maximize throughput, minimize cost and waste, and ultimately make a better, faster, cheaper widget. A funny thing happened on the way to the dark side of marketing. I discovered that the only thing in the middle of the road was quite literally dead road kill.
I do not know if you remember stores like Bradlees, Ames and Service Merchandise (just to name a few), but they all folded because the environment changed and they were caught trying to service the mythological “average customer.”
Part of that change came when Wal-Mart began its juggernaut with the discount department store. Wal-Mart did two things right: 1) Focused on “mobile” consumers, and 2) Focused on offering g…

Lupercalia and St. Valentine's Day

OK, I just could not resist this: Romance, sex, orgies, wolves, and martyrdom all under one legend. Oh my, what a day we have!!! We might celebrate romance and sweethearts on this day, but boy, the Romans really knew how to party. While history is fun, it is also interesting to know how some things never change (like falling in love and celebrating it!). Happy St. Valentine’s and Lupercalia. May you celebrate it at your heart’s content with someone who has stolen or whom you have given your heart away!  Lupercalia is uniquely Roman. It harkens back to the days when Rome was nothing more than a few shepherds living on a hill known as Palantine and was surrounded by wilderness teeming with wolves. The name comes from lupus, or the latin form of wolf, that celebrates the founding of Rome by Romulus and Remus (as they were suckled by a she-wolf). 
Another thought is that Lupercus, protector of flocks against wolves, is a likely candidate for the name. In any case, there is no question abou…

The Saleman's Litmus Test

If your goal is to become a great company or even improve your existing one, every employee in you company should be able to “sell” the product or service that you are merchandising. Since that is usually not the case, you are forced to hire sales people to help implement the objectives laid out by upper management.

A national study indicated that less than 3% of the population has an inherent penchant for sales, and as much as 50% of all salespeople really do not know how to sell. During my 20 odd years in sales, I have hired, worked with, and observed great sales people (yes, both men and women). Being the observant type and believing in best practices, I have complied a listing of questions you should ask any salesperson before you hire them, and should use this Litmus Test to review of your existing sales force to determine whether to keep them or cut them loose.  I hope you find it useful.

Psyching Out the Test: People always try to answer questions the way they think you want th…