You’ve heard it hocked by every “get rich quick” speaker and author for decades. Forget about passion, meaning, significance and just devote all your time to creating passive streams of income. You know, start a franchise, rent properties, write a book, create a viral information concept, rent billboards.
Easy schmeezy! Just buy it, build it, get it going, then let it run itself and throw off millions while you to just kick back on the beach and watch your bank account soar.
Problem is…the “passive income” approach to wealth is largely a big, fat scam!
I could rant for hours on this, but, instead, I’ve always found the best way to get somewhere is to look at people who are already there and see what commonalities arise in the methods they used to get where you’re thinking of going.
So, for those of you who aspire to fabulous wealth, here are some eye-opening facts about the richest 1% of people in the U.S….and how they got there. According to a recent SmartMoney report of The Harrison Group’s latest wealth survey:
- The number of pentamillionaires, people worth more than $5 million dollars (excluding home value), in the U.S. has quadrupled in 10 years to 930,000
- Only 10% inherited their wealth
- 70% of big-family fortunes are less than 13 years old…it’s mostly new money created by entrepreneurs.
- 80% started their own businesses or worked for a small-business that exploded.
- Most did not accumulate the bulk of their fortunes over time, but rather in a fairly short burst after years of hard work.
- Most of this new money is generated by risk-takers for whom “wealth is a byproduct of pursuing their passion.”
- For most, money was not much of a motivator. Solving a problem or improving on something that existed was.
- Only 10% of their wealth was attributed to passive investments.
What does all this tell you about acquiring super-wealth?
You’ve got to work at it…really, really hard, often for years. It may not come until you’re on the verge of giving up. And, the prime motivator is rarely the desire to get rich or retire early, but rather the mad-passion to solve a problem, make a difference or do something better.
Of course, this is a bit funny, too, in light of the recent rambling I’ve been hearing about blogging being an amazing way to generate passive income…oh, sorry, I think I just gave myself a hernia laughing.
Maybe, for a cadre of bloggers I can count on one hand who’ve accumulated a massive enough library of evergeen content to generate attention and revenue for years to come, this is true. But, guess what, it took them years of hard work to amass this “passive-income generating asset.
Are there quirky exceptions, especially in the tech-world? Sure. But, I wouldn’t hang your uber-wealth hat on being one of them.
Does this all mean I don’t wanna be rich?
Um, no! I do. I want to live a nice life and give my family what they need to be comfortable. But, I will create this as a by-product of loving what I do and who I do it with, adding meaning to the world and and living a significant life. Not, as the result of a quest to create passive income devoid of passionate genesis.
Honestly, the real reason I want to be rich is to be in a position, after taking care of my family, to be able to give it all away…to be a conduit!
Food for thought.
So, what do you guys think? Share your thoughts in the comments…
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