Exactly 5 months ago, I suggested that a mentor is the way to riches and that luck may play a part.
Now we have hard data that luck really plays a part (at least according to a report by trusted names like Capgemini and Merrill Lynch).
A high net worth individual is defined as having more than US$1 million of investable assets on top of his/her residence property. So if you have US$1 million in your savings account, you’re a HNWI. Or if you have a 2nd property worth US$1 million, you’re one of the 67,000 HNWIs in Singapore.
22% of the high net worth individuals in Singapore became rich because they inherited the wealth.
That is about 15,000 of them. They are lucky to have wealthy parents. Their lucky kids are probably future HNWIs.
To be fair, the rest are self-made millionaires. In fact, 36% or about 24,000 got rich from their businesses, but a week ago, we just touched on the issue of fewer entrepreneurs.
22% + 36% = 58%
So what about the remaining 42%? I infer from the report that “earned income” and “stock options” are 2 other major sources of wealth. (Now, doesn’t “stock options” relate to owning a business, or at least part of it?)
The question now is: Is it possible to become wealthy working for others?
Consider the case of a financial futures dealer/broker. The 75th-percentile dealer earns a monthly gross income of $23,517 (see top 100 jobs). In 10 years he’ll earn $2.8 million. This is more than enough to own a property to stay in and have more than US$1 million in investable assets. He’ll be a HNWI before hitting 40 years old.
So, to answer the question, yes it’s possible to be wealthy through earned income. But it depends on what job you do.
Otherwise, you can always be lucky. 🙂
I did not read the report.
But does the business include inherited businesses or new self made businesses?
jiante, it’s not clear from the report.
But I believe there’s a possibility of a person being “inducted” into a business and thereby making him wealthy “because of business.” Then he’s not as self-made a millionaire as it seems to be.
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I believe that a millionaire/billionaire is not always measured by how much he has.
It’s how much he is capable of making!
Look at Donald Trump. Bankrupt and back to billionaire club. He is rich because he got a “billionaire mind”.
I believe those days and in the future days will be very very different, now we need Unity as Unity is strength to become financially not so tight,
Lawrence Koh, Singapore,
I do not have a job even though I have good academic and work experiences. How to be rich?
Usually most unrich do not do what the rich do. And do not have what it takes to be rich.
Fear, give up easily when things don’t work out at the begining, self mental defeat. Want to get easy money n forgo the down to earth method which is very tough. Mixing with NOers who always say cannot, impossible and worst still seeking the poors opinion (DOOM).
There is no secret to wealthy but the detailed defined actions that leads to success.
E.g. I have many friends who knows how to swim but none is able to teach me the right techniques. Until I self learnt and then i discovered the EXACT Right Method.
Many people can be rich but they are unable to teach/help others to be rich like themselves. Talking is one thing but Action is different from talk itself. I can imagine I’m a billionaire but it is just only in the mind and almost effortless.
But Actions may kill/build the things in the person’s mind.