Do Smarts Equate to Wealth?
Some people have risen to fame and made their mark, but does that mean they’re more intelligent?
According to Zagorsky’s National Longitudinal Survey of Youth findings, IQ does not determine wealth. In fact, there are highly intelligent individuals who face financial difficulties and struggle to cover their debts.
The 2004 study was performed on 7,403 30-something baby boomers who answered questions about their financial status and were tested for their IQ.
- 9 percent reported credit cards charged to the limit
- 18 percent had missed at least one bill payment
- More than 13 percent had filed for some form of bankruptcy
After holding a plethora of variables constant, each point increase in IQ test scores raised income by between $234 and $616 per year. The result of the study showed that IQ and income certainly have a link, whereas IQ does not guarantee wealth.
There are people born into wealth who do not have a high IQ but leverage their position to capture public curiosity. Bonus points if you’re attractive. Think of Kylie Jenner.
Furthermore, Muhammad Ali has a supposed IQ score of 78 (below average) but is one of the most lethal fighters in history.
Conjure the trust fund baby compared to the individual who was born under the poverty line. Who is going to work harder most likely? The latter is because they understand that they intrinsically have limitations. Therefore, it is not always natural ability but work ethic that also should be considered.
In a Forbes article, Alexis Curtis’ “grit and determination” was highlighted in her quest to become a 22-year-old serial entrepreneur beginning at the age of 12. Four years later, Curtis was featured on Rachel Ray after she dropped out of high school and pitched herself to the producer of the show.
Let’s not just credit it to hard work though. A luck component exists, too. A Youtube video goes viral overnight or a random conversation lands an average Joe a million-dollar career.
Pamela Anderson landed her first modelling gig after a cameraman panned to her on the big screen at a BC Lions game and the crowd erupted. Her friend Labatt recognized the attention she was capturing and closed the deal.
What’s more, Steve Will Do It of the Nelk Boys became famous for his drinking videos and now has a net worth of around $5 million.
We often place successful people on a pedestal without the context of their situation. They could have worked diligently, but they also could have been in the right place at the right time or have inherited generational wealth.
It can take one event to radically transform your trajectory, and IQ isn’t always part and parcel of the equation.
Next time you think that you’re incapable because of your IQ, think again!
Smarts do not merely equate to financial savviness. Persistent effort toward a goal and luck may be sizeable determinants.
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