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.1% vs. the 5% Population

by Young Financier
7 replies
Here's something I've been thinking about recently....

In the news, we've heard all this talk about the 1% (which is really the .1%). Basically, by the 1%, they mean the super wealthy. By super wealthy, we're referring to people with a net worth of $100 Million or more. This is your group that most likely earns tens of millions of dollars a year. But there's another group that don't seem to get any recognition, and it is the 5%. In America, 5% of the population has a net worth of $1 Million or more. This group likely earn hundreds of thousands of dollars a year. They may not be super wealthy, but they're still doing really well.

So here's my thing. Why get discouraged when we hear that only .1% of the population is super wealthy? Why not strive to be part of the 5% who's worth at least $1 million and earns hundreds of thousands of dollars a year? From there, you can work your way up to the .1%. I personally believe that people don't broadcast that 5% statistic because they wanna keep people feeling like victims and making them believe that they don't have a chance in hell at ever becoming wealthy.

If you want a breakdown of assets and liquidity and how it pertains to your personal net worth, visit this thread: http://www.warriorforum.com/mind-war...liquidity.html

Of course that thread received no replies because I'm speaking pragmatically instead of the typical "think positive" jargon.

So, the next time you hear someone broadcast stats like the .1% (they may say 1%), immediately think of the 5% that may not be super wealthy but are still doing better than most.
#population
  • Profile picture of the author Odahh
    what about the 10's of millions of people who live in the Us who never earn that much but they will work for a time here then go back to the country they where born in and live really well for a long time ..

    relative wealth and income is more important than actual wealth and income.. and the im or business through the internet ..give you greater degrees of ability to take advantage of relative income ..it depends on where you want to live though ..

    the difference between the 1 percent ..is there money works for them the 99 percent ..work for money ..and most of the very rich only invest in assests after they creat assets
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    • Profile picture of the author shazaman
      they are far and distant that is the 1%, the ones who really broke the mold and went for it, made the big bets and cashed in, I think it is inspirational. These people have played the game well and I respect that, even the 5% needs some recognition
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  • Profile picture of the author aceshigh888
    Well you got me thinking of something. If you read the 4 hour work week the guy talks about how if you make say 60k a year you could probably still live all your dreams and more. And if you're making that as passive income so you have free time to travel and do what you want then you're basically golden. I kinda like that number in some ways because it doesn't attract the attention of the eye-r-es. Like I guarantee you that if you make over 100k a year threw a website or make million "YOU WILL" be visited by the eye r s. And whether you have your books in order or not, it's not gonna matter, they'll invent stuff as a means to have you pay more. Hopefully nothing that will sink your ship but it could happen. I'm not saying you should live in fear either, I'm just saying if you make a lot you will be visited by the MIB, it's ridiculous.
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    EXERCISE: Take a deep breath, hold for 10 seconds, release. ..... There see you feel better now???
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    • Profile picture of the author Aaron Doud
      Originally Posted by aceshigh888 View Post

      Well you got me thinking of something. If you read the 4 hour work week the guy talks about how if you make say 60k a year you could probably still live all your dreams and more. And if you're making that as passive income so you have free time to travel and do what you want then you're basically golden. I kinda like that number in some ways because it doesn't attract the attention of the eye-r-es. Like I guarantee you that if you make over 100k a year threw a website or make million "YOU WILL" be visited by the eye r s. And whether you have your books in order or not, it's not gonna matter, they'll invent stuff as a means to have you pay more. Hopefully nothing that will sink your ship but it could happen. I'm not saying you should live in fear either, I'm just saying if you make a lot you will be visited by the MIB, it's ridiculous.
      I can tell you that unless you live in a high costs area that $60k plus you can live most of your dreams. And if you get to the point where that is relatively passive you can live even better.

      I make $65 to 70k a year but my job requires me to be at work so I don't have the freedom of time. But I can tell you otherwise I live pretty much the way i want and really enjoy life. Can I buy a lambo? Not one worth owning but I have a nice Corvette and a nice Grand Cherokee. i eat out 10 or more times a week and I live in a nice home and provide for my two daughters.

      I think people too often worry about the $ vs. enjoying life. Figure out how to live a life you will enjoy and along the way learn how to make good money doing things you love. If you are relatively smart it really isn't that hard to make a nice middle class income in the US and that income can provide most people with nearly all they desire unless they are hung up on material things.

      I like sports cars for the feel of driving them and it is one of if not the most expensive hobby you can get. I can always find more great cars to fill more income. But I know I can buy great cars for less too. Would I own some really expensive cars if I could? yes of course because I love cars. Do I need to in order to be happy and live the life I want to? Of course not. The world is full of great affordable cars like Corvettes and even 911s.

      And if travel is your thing there are plenty of people who travel the world who make less money than you think.

      But we should feel lucky that we see this while the others don't. I love the fact that there are people willing to flip my burgers vs. living their dreams. Our dreams would cost a lot more if everyone followed theirs.
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      Aaron Doud - Sales & Success
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  • Profile picture of the author Mr Bill
    I agree with Aaron, aim for 100k, keep your essential living costs to less than half of that and you're going to be able to live in a great house, have plenty of spare cash to spend on "stuff" and will be able to indulge your hobbies and a few passions. All this talk of "millionairism" is pushing the freedom lifestyle way out of proportion.

    I've lived with all sorts of incomes including some years where I made 7 figures (almost accidentally) and I can tell you that having "more then enough" money feels almost exactly the same as having millions. If you leave out the yachts, jets and entourages 100k is about all you need (especially if it's passive or work from a computer money) and the best part is that making a plan to make 100k is a hell of a lot easier than making a plan to become a "millionaire".

    Financial freedom is much closer than you think.
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    • Profile picture of the author Young Financier
      Originally Posted by Mr Bill View Post

      I agree with Aaron, aim for 100k, keep your essential living costs to less than half of that and you're going to be able to live in a great house, have plenty of spare cash to spend on "stuff" and will be able to indulge your hobbies and a few passions. All this talk of "millionairism" is pushing the freedom lifestyle way out of proportion.

      I've lived with all sorts of incomes including some years where I made 7 figures (almost accidentally) and I can tell you that having "more then enough" money feels almost exactly the same as having millions. If you leave out the yachts, jets and entourages 100k is about all you need (especially if it's passive or work from a computer money) and the best part is that making a plan to make 100k is a hell of a lot easier than making a plan to become a "millionaire".

      Financial freedom is much closer than you think.
      In that other thread I linked, that's exactly what I was talking about. I posted a wealth table put together by Felix Dennis which showed how much in liquid assets a person would need to reach a certain net worth. According to his table of wealth, a person with $100k in liquid assets is a millionaire.

      Great reply.
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  • Profile picture of the author eddie jay
    "Financial freedom is much closer than you think."

    Sorry dont have that mush to add to this ... However i do like this phrase
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