What Makes the Rich Different?

by James Hendrickson on September 2, 2013 · 2 comments

rich-peopleHi All,

One way that mega millionaires are different from everyone else is: income composition.  When you compare investors with over $5 million in net worth to those with 100,000 to 1 million in net worth, a big difference is percentage of income from investments.  Investors with over $5 million receive 43% of their income from investments and 40% from salary.  In comparison, the mass affluent receive only 20% of their income from investments and 57% from salary (1).

Your goal should be to increase your investment income.

Ways to do this include:

1. Purchasing stocks
2. Purchasing bonds
3. Starting a small business
4. Getting some stock or bond mutual funds
5. Owning income producing real estate
6. Buying shares in a REIT
7. Acquiring and developing raw land
8. Lending money to others

Happy investing all.

James

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{ 2 comments… read them below or add one }

1 Terry Pratt September 3, 2013 at 2:30 am

What makes the rich different? A sense of entitlement?

2 James September 5, 2013 at 10:11 pm

Terry,

I’m sorry you feel that way. Usually what makes you rich is a lifetime of hardwork and successful investing, not a sense of entitlement.

Thanks,

James

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