In my last column, I discussed the powerful concept of "radical responsibility." It means taking ownership of every sphere of your life - from your health and wellbeing, to your business and personal relationships, to your saving and investment goals. Why is this so important? Because if you blame your current circumstances on other people, bad luck, or lousy circumstances, you relinquish all your power. Your ability to change others' behavior - not to mention "society" or "the culture" - is minimal. But your power to change yourself is almost limitless. So take Gandhi's sage advice and "Be the change you wish to see in the world." This is where you can make a real difference, particularly when it comes to saving and investing. Don't listen to the siren song of the pessimists and complainers who insist that this is no longer the land of opportunity, that the American Dream is dead, and that the little guy doesn't have a chance. Most of the rich - and even the super-rich - in this country did not get where they are through a generous inheritance or family connections. Forbes notes that only 7% of the men and women on its list of the world's 400 richest people inherited their wealth. And Dr. Thomas Stanley - the social scientist who devoted his life to studying the habits and behavior of America's high net worth individuals (the so-called 1%) - discovered that the vast majority had no special connections. Approximately 85% of them built their own fortunes. And 68% received no inheritance, gifts, estates, and/or trusts. Many believe that millionaires have advanced degrees from prestigious universities. Some do. But while there is a direct correlation between educational attainment and lifetime earnings, the nation's most highly-educated individuals do not have the highest net worth. Most millionaires have a college education. But many were dropouts, B or C students, or learned a high-paying technical skill that created opportunities for greater compensation down the road. People typically assume that most millionaires are business owners. (After all, you can't get rich working for somebody else, right?) Not so. Stanley discovered that 72% of millionaires in this country do not own a business and are not self-employed. People tend to believe that the middle and lower classes work far longer hours than the rich. Wrong again. |
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