RE: What Are Wealthy Families Doing Differently?
Unfortunately this is old info, and very poor advice for today.
Just like the old line, those who go to college make $XX,000 more.
What is the difference between these groups is financial literacy.
Or, understanding the difference between good debt and bad debt.
Not everyone has the mental capability to run a business in a developed world. The regulations are killer. The run ins with the govern-cement gang can cost you more than a protection racket.
So, this research just basically separated people into two groups, those who had a brain for finance, and those who didn't. I bet you would find that IQ pretty much separates the two groups also.
Today, going to buy a house with a jumbo loan is financial suicide.
We are looking at a financial collapse along with a housing bubble burst.
So, it is not a good time to put any money into realestate.
However, it is very much the best time to start a business. Online startups are almost without cost. Start a side hustle.
past research has shown the opposite, that personality more than IQ is a determining factor of business success. Even those who do have the "mental capacity to run a business" will still likely fail👍😄For those who can afford to own their own property and funnel that money toward owning their own asset it seems like a much wiser decision than simply paying someone else to rent their space but no of course this wouldn't be the wisest nor the most ideal situation for everyone. There are many overpriced real estate markets today so it does make it more difficult.
The differences between the groups were outlined above, some owned homes and their own businesses, some owned homes and worked for others, and some rented and worked for others--you can assume the financial literacy of the tens of thousands of individuals if you want to just based on those category parameters but it's just a guess.
I have seen many studies, using other categorizations of the same end result.
The IQ graph is weird because, like up to 130 you get more and more wealthy. After that, you fall into two camps, very high paid expert (employee), or professor. So, the top end of IQ doesn't pan out.
The most indicative graph is the one comparing the ability to delay gratification. With the longer you can delay gratification the higher in the wealth bracket you become.
"Your house is not an asset! It is your biggest liability" - Robert Kiyosaki
The reason home ownership has worked so well is the inflation in housing caused by fractional reserve lending. So, the earlier you bought the house, the better off you would be over your life. (until wages stagnated)