6 millionaire myths debunked
1.
People might read the article above and think, "Well gee, what's the big fuss about income inequality?".
The article is particularly misleading in the context of the income inequality discussion because the article is discussing a stock variable- accumulated savings, assets. Whereas income is a flow- it has units of time attached to it.
Clearly it is easier to amass a million dollars than to earn a million every year. Knowing that you'd think wealth inequality might be better than income inequality, but it is actually worse.
2.
"their first million in dozens of different ways, from starting their own businesses to investing in the stock market or real estate. And those aren’t the only paths to becoming a millionaire, either: Others hit the mark by simply living below their means and saving portions of each paycheck. "
This assumes people start life with collateral or savings. What happens when you are living at the means floor? Cheapest apartment, ramen budget... How do you save?
3/4.
"In most cases, millionaires have gotten to where they are precisely because they've practiced excellent savings habits and live frugally. They learn to make smart choices...without letting excuses get in their way. They, too, have to deal with unexpected expenses — plumbing leaks, health insurance increases, car trouble. They just keep moving forward despite the inevitable obstacles they have to overcome"
While in school, Jim takes out loans to cover his tuition, he works a part-time job to pay for rent, food, and transportation. Of course his pay is minimum wage, which he hates (that's why he's in school) so he has to be frugal and eat ramen everyday (which has the effect of makes him unhealthy). Say his car (which apparently fell from the sky) breaks down and now he needs to take the bus everywhere and save up for a new used car. He feels like the bus and all his hard work is going nowhere. Nonetheless he's absolutely sure when he graduates there will be a job available for him that pays enough to pay for the box he lives in (apt), beater (cheapest car he could find-hopefully it won't breakdown again), student loans ($500/month) and still save something. He made all the correct smart choices so naturally he'll be validated.
5.
"Not so: Pure luck is not a factor in achieving success. Rather, truly successful people make their own luck. After all, a million-dollar idea is worth nothing without execution...Casey would say it was hard work, not luck, that got him over the million-dollar threshold. After getting an “in” at that first store, he worked 12-hour shifts — sometimes several in a row, at various stores, without stopping to sleep in between —"
Robinson Crusoe- making rational choices with limited resources. No human relationships to constrain him! No society to speak of.
6.
"Another common myth is that millionaires were born into money or inherited it. But that's not often the case. In a recent survey, Fidelity Investments found 86 percent of millionaires are self-made"
Again, it is much easier (I'm not saying it is easy by any mean, just easier) to amass one million than to receive one million per year. And just out of curiosity, what exactly does "self-made" mean? Apparently it means using the participant's perception of what "wealthy" means as the "objective", scientific variable.
Tardy, J. (2014) 6 millionaire myths debunked. Yahoo Finance.
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