Advertising
Advertising

Do Wealthy People Really Have ‘Rich Genes’?

Do Wealthy People Really Have ‘Rich Genes’?

What is it that the rich have that the rest of us don’t? Is coming from a wealthy family a pre-requisite? What kind of role does education play? Or does the accumulation of wealth happen because of certain personality traits?

One controversial theory is that some people actually have ‘rich genes,’ and that those who are rich were born to be. While this may sound far-fetched, there are still some who believe that ‘rich genes’ exist. So exactly what role do genes play, and what can we do to increase our chances of becoming wealthy? When Australian newspaper, the Herald Sun, last year reported the alleged findings of a study on the relationship between wealth and genetics, it certainly caused a lot of controversy. The Australian government’s top policy research report titled Deep and Persistent Disadvantage in Australia, was quoted by the newspaper, saying: “Rich kids do better at school while poor children struggle due to genetic ‘inherited abilities.’”

Advertising

What Do Rich People Think About Rich Genes?

This quote turned out to be a misrepresentation of what the report actually concluded (i.e. that environment played the biggest role). In the meantime, however, the argument gathered support, mostly among the wealthy. Whereas those of the lower social classes tended to believe that they didn’t deserve to be disadvantaged. This is hardly surprising when you consider another study by Kraus and Keltner from the University of California, Berkeley, which showed that individuals who perceived themselves as higher in social class rank tended to believe that differences in social standing can be explained by natural or inherent factors, rather than the social-situation context.

In What Degree Do The Genes Affect Our Wealth?

But before we dismiss the idea of rich genes completely, we should consider that some studies suggest that income, educational attainment, and occupational status are at least partially determined by genetics. Researchers at Edinbrough University, for example, claim that genes determine how persistent we are and how much self-control we have, both of which play a large role in success.

Advertising

What Else Determine Our Wealth?

A more recent study by CNN Money, in which wealth psychologists such as James Gottfurcht, who runs Los Angeles-based Psychology of Money Consultants, participated reveals that certain personality traits are responsible for the creation of high net worth individuals. Not surprisingly, nearly all individuals with a net worth of over $5 million were entrepreneurs. The ability to go into business for yourself rather than rely on the security of a salary was something nearly all of these people had in common. And according to the study, that requires certain personality and behavioral traits. These include high-energy levels and the ability to work up to 70-80 hours a week. These people often reported sleeping less than others, and frequently took working holidays. Vision and self-confidence were other traits that were essential to accumulating vast amounts of wealth.

Kristen Armstrong, a strategic wealth coach at Ascent Private Capital Management described many of her clients as “force of nature” people, who “have a really great ability to envision possible futures … [and] an amazing ability to focus their efforts and energy once they see a possibility.” High net worth individuals also tend to be tolerant of certain levels of risk. They understand that risk is an essential part of profit, but they are never impulsive and tend to take a long-term view of risk.

Advertising

Despite a number of narcissists in the group, psychologists reported that many of the super-wealthy are surprisingly modest and don’t choose to change their lifestyle to suit their increased wealth, choosing instead to invest their money back into their businesses. The good news is that many of these traits can be learned. Wealth psychologists believe that it is sour deep sub-conscious beliefs about money that determine how much money we have.

If you want to improve your own financial situation, look for a life coach who specializes in wealth and money mindsets, and ask them to give you a few pointers. If you are a struggling business person, or budding entrepreneur, look around for someone successful to mentor you. Most of all believe in yourself, and remember that you don’t need to be born with ‘rich genes’ to be wealthy.

Advertising

Featured photo credit: rich genes via madisonmovie.files.wordpress.com

More by this author

Linda Paull

Linda is a passionate writer who shares lifestyle tips at Lifehack.

How to Read Faster: 8 Simple Tricks to Triple Your Speed 5 Questions To Ask Yourself If You Want To Be An Entrepreneur Nine Easy Home Remedies For Constipation Do Wealthy People Really Have ‘Rich Genes’?

Trending in Money

1 Life Insurance: A Secure Way To Protect Your Future. 2 How To Save Money On Groceries: 13 Quick Tips 3 10 Investment Tips For Beginners 4 Top 6 Hacks on How To Build Credit Fast 5 Want to Get Free Product Samples Like Bloggers and Beauty Gurus Do? Read This.

Read Next

Advertising
Advertising
Advertising

Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

Advertising

On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

Advertising

  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

Advertising

  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

Advertising

Featured photo credit: aryehsampson.com via aryehsampson.com

Read Next