Why Dumb People Earn More Than Smart People
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#business #finance #careers
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Dumb people make more money than smart people and it took a study conducted by really smart people to prove it. A study out of Sweden has found that top earners have lower intelligence than the people in income levels directly below them.
The Plateauing of cognitive ability among top earners drew on data from 59,000 men who had to take a compulsory military conscription aptitude test. It then tracked their earnings over their professional careers to find the relationship between intelligence and income. Before Tai Lopez gets any ideas for more shitty KZhead commercials or the hustle bros learn how to read journal articles and use this to encourage people to drop out of college, I want you all to know how this data really works.
The relationship between intelligence and income was strong, smarter people earnt more money but only up to six hundred and seventy thousand Swedish krona or sixty-four thousand dollars per year. After that intelligence didn’t mean much anymore and at the very top end of income earners, the 1%, dumber people actually did better.
So is this a sign that watching TikTok and reality TV is actually better for your career than going to college? Well maybe actually, for two important reasons but there are also two reasons why you should probably ignore this and keep studying hard if you want to get ahead financially. Reason number one why dumb people are doing better than smart people is that smart people fill in high prestige jobs that don’t have high salaries.
Academics and research scientists are some of the smartest people in the world, but they don’t get paid well. Doctors, lawyers and elite financiers also need to be very smart to get through demanding schooling and admission exams and these professionals ARE typically compensated very competitively BUT most of them don’t make it all the way into the 1%. In the USA to be in the top 1% of income earners an individual needs to make at least five hundred and ninety-seven thousand dollars before tax and that’s just the minimum to join the 1% club.
so it’s time to learn How Money Works to find out why dumb people are earning more than smart people and why this trend is completely meaningless for your own career planning.
If you saw this, and think "Ah, I'm smart, that's why I'm poor", you are not one of those smart people.
He did actually say that intelligence correlates to income, but only to a certain point. So this comment was superfluous.
😂😂
The second comma in that sentence should be between the r and the end quotation “…poor,” Punctuation always goes within the quotations, unless you are doing a parenthetical citation. Not trying to be rude or anything, I just have grammar ocd.
That was not what the video was about, but okay. It was just more about the normal distribution of intelligence impact on the studies results. But you can of curse just say something based on no logic connected reality that some random person is stupid if you want to do that, you do you.
🤣🤣🤣🤣👌🏾
My dad was a physician, he would always say that the top 3rd of med school graduates would become academics, the middle 3rd would make the best doctors, and the bottom 3rd would make the most money.
why would the bottom 3rd make most money?
@@lelele1408 Probably because they went into medicine for the money in the first place. It's not a recipe for someone being passionate enough to excel in the field, but the supply and demand for doctors means they can still get paid very well. There may also be a difference in ethics/values...
@@lelele1408 The same reason Dr Dre makes more money than most doctors
@@lelele1408 imagine the same situation with hookers, the one without self worth will get more money than the one that does it because its her passion.
@@lelele1408 Because they would be ambitious enought to take risk. Which would result in several big winners and most losing out on those bets. But in sum because of those few winners bottom third would get more money as a group.
Survivorship bias is a big part. Dumb people gamble for success while smart people are slow, methodical, and disciplined. Taking huge risks with huge rewards can reap terrible consequences but if you succeed at your venture your ceiling for success is far higher. When you look at these top earners, you're looking at the gamblers who succeeded and missing the mountain of failures who you will never hear of.
it's true I gamble with leveraged options in the market
Exactly.
Exactly. Millions of failures pave the minimum wagers
Glad someone pointed this out. This is true for countless situations. W/ the exception of stupid influencers, you can't be dumb to be even moderately successful (even if you use income as the metric). You don't need to be book smart but you have to be smart in various areas.
EXACTLY
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
Even the markets are very unpredictable. started investing recently when the market prices were a bit high ,today i am more than 60% down
I thought about investing in the real estate market, I heard that people make millions , but I lack good knowledge and a strategy to outperform the market and generate good yields. I have $460,000 but it's hard to bite the bullet and do it. Money is hard to come by
I began my investment journey at the age of 38, primarily through hard work and dedication. Now at the age of 40, I am thrilled to share that my passive income exceeded $100k in a single year for the first time. This success reinforces the importance of the advicmonth e mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.
Fantastic! Can you share more details?
She's known as Julia Hope Marble'. One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
I knew a guy at work that was forced around from job to job within the company because he was "dumb". Apparently he received a raise every time this happened because of negotiating power and a "diversified" resume.
Could just be he knows the job and it’s easy for him.
😂 He is not the one that is dumb, that's for sure.
At my company, he'd be fired on the spot LOL. There's always more to guys like these than meets the eye. Family connections in top management, or something similar that a regular employee has no idea about.
This guy has a video on that actually, "Why is Company Management Always Bad" - Basic idea was the dilbert principle (this)
@@fhujf Or drug connections. I know of someone that got promoted got a new job, quit that job and got the same job with the promotion to top it all because they personally knew the president and manager, and they knew each other because of weed deals in the past. It’s not always what you know, it’s also who you know; and yes, lots of luck with that one. XD
I could have told you this without a study. I'm an attorney that does wealth management and protection for the 1%, so I deal with the 1% every day. Being charismatic and lucky is far more important than being intelligent when it comes to being in the 1%.
Sometimes I think studies that study something where we know the answer for get more support. Then again, I haven't studied that.
Elongated Muskrat fits the bill
@@keanuxu5435 😂😂😂
It’s always better to be lucky than good
charisma and people skills are arguably as important as intelligence. I know a lot of very intelligent people who are shy, not very assertive, and not great at communication. There are borderline autistic people in maths and sciences that are amazing at their jobs but would not do well managing a company
I love to see an analysis on how personal ethics plays into this dynamic as well. Having worked in corporate jobs, I've noticed that the people who can "turn off" their personal ethics and do things that they would never do outside the work place, often get promotions before employees who refuse to behave in unethical ways. I remember seeing a video clip of a Ted talk where the presenter said that there are more clinical psychopaths in high paid positions then in the average population, and all the "business leaders" in the audience looked shocked. My reaction was, "that doesn't surprise me." No one can turn off their ethical code as quickly a clinical psychopath. In other words, you don't have to be clinical psychopath to get ahead, but it helps.
I mean, if you keep worrying about all the little people all the time you’re not gonna have time to make that dough. Gotta make sacrifices. Everything in life has a price, even being rich
@@KhiemNguyen-ly1wz Yeah, but the difference is that some people are willing to pay the price while others don't. Otherwise everone would dream of becoming a paid undercover murderer for the secret service or so. Most people do have empathy that permits them from adapting towards inhumane work ethics. And more often than not, how much empathy you have is dependend upon genetics and early childhood trauma far more than on actual socialization.
@@vornamenachname1069 "Yeah, but the difference is that some people are willing to pay the price while others don't." I know, that's the point
@@Vercusgames That's correct. Lying and cheating is the fast lane to the riches, but it can be accomplished without lying and cheating too. Buy the bottom, sell near to the top. That's it. This is the job. Even a 5 year old can trade in Crypto highly successful with only trading on RSI and absolutely basic information. But most people just don't do it. They think it's some kind of magic and must be more complicated, but it's not.
@@Vercusgames Making big money doesn't correlate with intelligence. If there would be correlation, all of these University PhD's would be the riches people on the planet. It has to do in what field you are (is it a new one where the money is?), if you make a business or just work for some other guy (if work 9-to-5 you probably will never become rich) and if you know how money works (investing). What makes you money in order of possibility to get rich: 1.) a job (low possiblity, because least risky) 2.) a business 3.) investing/speculation If you believe everybody who gets rich is an a-hole or corrupt, I really can't help you. Then you need to alter your mindset or educate yourself on what money is and how it works. Hope my comment is of help for you. Wish you the very best!
My father had a masters in engineering. There came a time after being in the work world for a number of years that he began to think about getting his PhD. He looked around at the various levels of people he worked with and decided it would be a better idea to get degree in management. Not long after he found himself hiring and firing PhD's on a regular basis.
Smart
What management degree was it?
Sometimes you can hire and fire people, but still not earn much more than they do. But specifically about PHD, it mainly benefits those who work at university or science lab. They, too, are hired and fired by a manager. In general PHD is worth spending money on mostly if you have extra money, and everyone in your social environment already has PHD.
From my experience many PhD holders are a prick...refuse to listen to people below them..undermine techinicians and operators..always treat machine and process theoretically and causing major headache to engineering and production department and worst of all i've got 2 warning because i didnt appear on cctv working and operating the machine (i was operating on other machine and the machine wasnt in cctv field of view)..
Still doesnt mean he makes more than the people he fired.
Money is basically just an indicator of how good you are at navigating the social game, in most cases
100%
True that, connections matter.
Or whether you got lucky and was just born in the right family.
Consider yourself lucky because you have access to social media, basically changing the entire marketing game. Most of my time marketing was spent by myself learning here on KZhead and viewing where I failed and searching for an answer on KZhead. Although connections help get to success. You can do it on your own it'll simply take longer. The best trait to have is perseverance.
@@aigoated "Doing it on your own" still implies doing business with others to aquire wealth, human wealth is an indication of social connections, from monopoly's to inheritance, if you could build your own castle yourself you woudn't create currency as a King you'd just do it, you only create currency when you reach your own limitation and reach out to others.
I love how everybody and their mother on social media always tell people to quit their 9-5 and go into business. Yeah like every body can be an entrepreneur
Or even wants to be one.
Actually this video is only applicable to a weird small % of people. Myself include. I'm no dummy though. I graduated with a degree in engineering. But I quickly realized I wasn't as good as my peers. Quitting my high paying job to start my own business was a much better option but I had to be clever enough to come up with a niche business model and have the level of crazy to actually go through with it. It's a different type of intelligence. But I certainly lack a lot of conventional intelligence. For example, I think kinda slow and have poor working memory but I have above average creativity.
Don't. Most people can't handle it. There is a reason business founders are less than 1% of the population. There is a reason 50% of startups fail in the first five years. There is a reason less than half of startups turn a profit in the first three years. I started my business in 2007. I've seen multiple suppliers, competitors, collaborators and clients go down over the years for various reasons. It's not a joke. Some founders shut down gracefully, some crashed and burned, others rolled into another venture (sometimes more than once) stronger than before. That said it can be pretty freaking awesome to call all the shots, and it's treated me well. I'll never go back to being an employee.
Many people who had to go through the grind were motivated thanks to sunken cost, it really helps, especially once your standards become realistic and you’re more thankful for the little things.
@@dexterne It's the only way to fly.... well at least for you and me.
When I was in undergrad, the top students went into sciences and elite academic majors, while the B and C average students often went into business and marketing, where the material was much easier and they didn't have to try or study as much. Years later, those lesser achieving students are often far wealthier because they received their education in a subject that would work for them economically, while the kids that were at the top of the class are now serving under the kids that were always too lazy to get higher grades. And if you want an explanation as to why management is always so awful...
The problem is that society praises chasing capital for the sake of more capital without considering the side effects. It's a big reason why quality of life is declining over time
Quality of life is declining over empty money and fiat
@@sp123huh? that has nothing to do with the OPs topic at hand, in regards to the issue about human temperament, and the leaning to the academics, or business hustle. If you're on a rant about people working for money, just say so. But "smart" people think as well, that they're making the financially right choice as well
@@The-Dirty-Straw it has a lot to do with the topic at hand. Making money has to do with the ability to sell, not the ability to create value. Someone shilling their low quality white-label products will make more money than an engineer or a chemist who is doing much more difficult work.
It’s also why it’s the bumbling fool general in the USA military is a toxic leader. And the enlisted are sometimes smarter than officers with higher rank. I never served I’m just fussing my comment is accurate.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them., well at least my advisor does lol
Investors should be cautious About their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.
This is superb! information, as a noob it gets quite difficult to handle all of this and staying informed is 3 major cause, how do you go about this are you a pro investor?
@@PhilipDunk Not at all having monitor my porifolio performance which has made a jaw dropping $273k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemirigly unknown market. I must say it’s the boldest decision I've taken since recently
@@hankmarks69 Please pardon me, who guides you on the process of it all?
“Vivian Carol Gioia” is my adviser and she is highly qualified and experienced inthe financial Market , she has extensive knowledge on portfolio diversification and is considered an expert in this field. I recommend researching her credentials further she has many years of experience and is a valuable resource for anyone looking to navigate the market.
I believe luck plays a role much bigger than people are comfortable to admit. Two people with the same intellect and skills can have a completely different life based in what country they born and from what parents.
Luck is decidedly *the* deciding factor to success. Hard work and calculated, intelligent decisions can help luck along but without an initial "lucky break", it is usually very, very difficult to create a successful business that can last long term. Being lucky might be something as simple as getting the right customers (eg. willing to do business again in the future), getting the right kind of exposure at the right time or marketing "the thing" at the right time (eg. the OG iPhone prototype was basically a broken mess when it was first revealed to the public).
Personally I've been wondering if it might be a combination of becoming more risk adverse and having to much structured education leading to 'institutionalized' thinking. The less educated 'dumb' person might be better able to recognize an opportunity because they aren't as educated on what can be done and more willing to take the risks needed to take advantage of it.
I agree though I'd add that it's luck as a function of opportunities offered by wherever you are right now physically and what you're doing there. Moving yourself physically and temporally can greatly change your luck hence the saying of "show me your friends and I'll show you who you are". It's not the friends themselves per se but what circles they are in. And if you're an interesting person in the sense of having wide interests, plus have an open mind, a lot of people will humor you a conversation if you happen to be around them - no matter what your income bracket is at present moment.
@@kristianjensen5877 "Fortune favours the bold"
@@olstar18 I think it is less so that less educated people are better able to recognize opportunities and more so that there are more people we would consider less educated trying to find such opportunities than more educated people. It's like a lottery, more "dumb" people win them because less "smart" people play them since the "smart" people recognize that the expected value of playing the lottery isn't worth their money (unless of course the lottery is set up with a high expected value, in which case its a bunch of MIT students winning them).
One thing that wasn’t talked about is that being so much smarter than the average person makes it harder to relate to average people, aka the people who make up the vast majority of the economy and from whom you have to earn your money. It helps to be a bit smarter than your average customer, but not too smart that you can’t even understand them.
This is our issue with politics as well. When someone was raised with such a vastly different lifestyle and income bracket, it's extremely hard for them to have empathy and understanding for those less fortunate. I'm reminded.of the politician here in the U.S. who recently claimed he's never seen a child go hungry and equated him not having eaten since breakfast and now being hungry to that being the exact same situation of childhood hunger, completely trivializing the issue. 😒
@@BewareTheLilyOfTheValley wait who are you talking about
This.
@@BewareTheLilyOfTheValley exactly. When people insulted Trump by calling him a “poor man’s version of what a rich man should look like” they were actually pointing out the reason why he’s more successful as a politician than say, Mitt Romney.
I can't tell you how many times I've heard this sentiment and how wrong it is. You "being smart" doesn't make it hard to relate to people, having an underdeveloped emotional intelligence does. You should pretty much be able to empathise with anyone, even if you don't like them that much you should be able to form an understanding of how their brain works. Annoying to hear all these ex gifted kids who've never done the work in building their social/emotional intelligence complaining that it's their enormous intellect preventing them from doing so, and not the neglect of a learned set of skills.
The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.
Money invested is far better than money saved , when you invest it gives you the opportunity to increase your financial worth.
" It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid , instead of trying to be very intelligent."
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
I also keep seeing lot's of people testifying about how they make money investing in Stock, Forex and Crypto Trade(Bitcoin) and I wonder why I keep loosing. Can anyone help me out or at least advice me on what to do.
Even with the right technique and assets some investors would still make more than others. As an investor, you should've known that by now that nothing beats experience and that's final. Personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to $35k, withdraw my profit right before the correction and now I'm buying again.
This brings new meaning (or confirmation) to the old adage "It's not what you know, but who you know" that makes a difference in getting ahead in life.
Yep, and why high 'social intelligence' can often trump high 'IQ'.
As someone who went to top undergrad and graduate institutions, I would add that most truly smart people are looking to accomplish something other than maximal income with their careers. They'll happily sacrifice income to feel like they are using their intellect to improve the world. I think this often stems from so many adults telling gifted children that they hope they'll use their talents to make the world a better place when they grow up. I don't think average kids are groomed to expect such things from their work and feel freer to just chase money. Then again, it could just be that smart people demand more from their work than just income or are more likely to refuse to make the sacrifices to their personal lives that chasing very high income often entails.
Yeah I’m glad you mentioned this because this kind of discussion applies if you’re defining success as making lots of money. Other people have differing ways of measuring their success
"Either you're smart enough to want something more than being rich, or you're smart enough to want something less than being rich"
I think the expression groomed to become a better human is quite diminishing 😅 I think that a inteligent person would release oneself from the cuffs of brainwash in a relative young age. I think that a inteligent courioise persons will understand reality in a different way than others do. And will reach conclusions that lead them to direct their work onto making the world a better place.
I also share similar opinion. My smart friends often have idealistic value and their goal is to improve life of others or the make the world a better place. Often involves voluntary work. In contrast, average guy will chase career and start making money for a more realistic goal. I also think average people has the confidence to make decision while smart people always hesitate as they fear to be wrong. Which makes average people a better choice for professional world that requires decision making.
I think it helps to understand this issue by hearing what the truly smart people think too. I have the luck to have met an engineer who was working for NASA's JPL. He told me that if suddenly the lab says that they don't have funds anymore to pay the scientists, they would still go to work as usual. Hyperbole or not, I think it gave the idea of what is the driving force behind those scientists. Also, here's a couple of quotes from Terence Tao, some say arguably the greatest mathematician alive: "Okay, I don't think it would count as evil, but a lot of my PhDs, they go into the finance industry, Wall Street, and typically they earn ridiculous salaries. In fact, I don't even know exactly how much they earn. It's probably good for my health not to know." "Tao himself was once head-hunted by a hedge fund. 'But I don't know, these things never sort of really interested me.'" - Stephanie Wood, Sydney Morning Herald, March 5, 2015
As a statistician, I'm very glad with how you presented this study. Survivorship bias, Simpsons paradox and all one hundred other biases, even plain population proportion considerations are all too often overlooked
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@@thcg-evangelismministrychi5477 If he actually loved me he wouldnt shower me with an endless streak of bad things. Get your bs out of this comment section.
@@thcg-evangelismministrychi5477 stfu got doesnt exist
@@BlackoutGootraxian Your life on earth is like a breath of air. One moment it's here, the next it fades away. God promised that whosoever believes in His Son, Jesus Christ, will not perish but will be granted eternal life, and Jesus Christ promised that in the end times He will wipe off your tears. You, and every other person has the gift to live forever in happiness in the presence of God. The bot you responded to is simply making sure you don't forget just how much it costed for Jesus to make the promise of eternal life. IT costed His Life. God spent His Own Life to pay for the debt of sin of His Own creation, and He did that because He loves you.
If you're not self-made rich, you can present me every "bias" you want, I will still ignore your average-loser-mindset
I remember a quote from one of my favorite TV shows which is Mr. Robot and it goes, “Power belongs to the people that take it. Nothing to do with their hard work, strong ambitions, or rightful qualifications, no. The actual will to take is often the only thing that’s necessary.”
It’s frustrating that many still confuse the word “intelligent” with “educated”. The people described in this video as “intelligent” are actually the highly educated who tend to go into professions requiring advanced degrees. But they are still employees , which, by definition, means that there is a cap on how much they can earn. Steve Jobs dropped out of college, so he was not highly educated. But no one would ever claim that he was not intelligent. He used his intelligence, instincts and capacity for enormous amounts of hard work to build Apple and change the world of computing, and become extremely rich doing so.
We live in a society where being famous and good looking is valued more than intelligence and hard work. Look at all these influencers making loads of passive income doing nothing but posting on social media. Meanwhile professionals like doctors, engineers, and teachers are undervalued considering how central they are to the functioning of a modern civilization. It really feels like Americans put enterainment above other priorities like healthcare education, and infrastructure decelopment.
Dungeons and Dragons analogy of charisma beating intelligence in certain situations.
Culture is much more involved in keeping civilizations running than pragmatists will ever admit 🤷🏻♂️ Teachers should definitely be paid more for that reason though
And that's where Rome died, for saying "A bread and an entertainment".
Everyone is stupid to me until they can prove otherwise, I know because I know how stupid I can be sometimes.
Professionals make a good living, engineers and doctors make but loads of money... what exactly are you talking about?
Actual rocket scientist here. I feel I am severely limiting my earning potential because I know I could start some kind of business or create my own product, but I always second guess myself and say “this is so trivial, why on Earth would somebody be stupid enough to give me money for this?” So I just never try. “Dumb” people don’t care, they just try anyway.
if it solves a problem that many have, is framed to be the solution to a problem where the problem is grave enough for you to charge your customers a relatively fair, profitable price, it will sell. Even businesses do market research like that, but there's a strategy they teach where you test the product buy selling some first, and then if it works, you scale it
Maybe they are not dumb then.
Go work for a quant fund! You don’t even need investment experience. You would be a multimillionaire within 5 years
I'm not dumb, I know people will buy this shit 😂😂😂
You need, among other traits, BALLS to create a successful business! Maybe yours haven’t dropped yet . . .
As someone who has moved into academia from running a fairly successful business I now earn less, but my metric for being a successful person has changed from financial to intellectual achievements (as long as I can support my family comfortably).
this may be true that your metric has changed, but it could also be that it "changed" because you couldn't bear running a business and now cope with justifying yourself telling "oh my metric just changed".
@@oooouaa I can see how it might look like that, but that is genuinely not how it feels. The imminent thought of 'Dr' on my passport honestly means more to me than driving something really fancy (though this is within the context of continuing financial security).
Connections, more than "luck", will get you farther. If someone knows what you are truly capable of doing and are willing to help you, you can be introduced to people who need someone with your abilities. The person doing the introduction can give the other person a background on you emphasizing your strengths for the job and the other person will be open to meeting you because of their relationship with the first person.
That's why wealthy parents will pay such huge amounts to get their kids into an exclusive school. It's where those connections are formed.
We were fed this huge LIE from the time we got to middle school, that we had to study hard and get a college degree to earn more money. What a crock of SH!T. Most of what I know, I taught myself. I've asked several people this question before and never got a good answer. I used to live in a tourist trap, in Michigan, and quickly found that, what you know didn't matter one bit to any interviewers. The only thing that mattered to these people is WHO You know. Unfortunately I didn't know the right people. It was and is very frustrating, and infuriating. Thank you.
Also grew up with the thought of if you don’t go to college your shit. TV portrayed this a lot. Gotten better jobs through connections, doesn’t hurt that it playing into my strengths. Ohio sucks.
Successful people aren’t smart, they’re adaptable.
Yeah that happens when you're not entirely aware of your surroundings.
@@jfamo3552 conversely, that's what happens when you aren't caught in a loop of overthinking and cowardice
@@Laotzu.Goldbug you are right. Its a near pure meritocracy. We are lead by the most reasonable, altruistic and gifted people👌🏽
@@jfamo3552 The most important merit to be part of the Wallenberg family in Sweden is to have the last name Wallenberg. So it's a sort of meritocracy, where your bloodline is your merit.
@@jfamo3552 They've been going for six generations with their system of foundations. No single part of the family can break it all up or break out a part. They're all bound to it, if they want to live off it.
Malcolm Gladwell summarizes this well in Outliers when talking about Christopher Langan, “the smartest man in America.” Also matches up with his other book David and Goliath. Basically being smart matters up to a point, but after that - social skills, conscientiousness, creativity, luck, etc. all matter MUCH more. Not to mention, the richest people tend to be the ones who WANT money to the exclusion of other things. Maybe smarter people realize that infinite money ≠ infinite happiness? 🧐 Edit: your analysis during the second half was 💯💯 playing to your strengths will always beat chasing what others tell you to.
That, and they've realized that success is an arbitrary societal notion and it shouldn't be programmed into you.
I would be retiring or working less in 5 years, and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.
Consider hiring financial advisors, estate planners or tax experts. They can provide specialized knowledge and help you navigate complex financial decisions. Right now treasuries and HYSAs pay 4.5-5% risk free, do that.
Speaking with an advisor helped me stay afloat in the market and grow my portfolio to about 65% since January 2022, and in a couple months, I was able to earn over $350K in net profit They have strategies that are specifically suited to your long-term objectives and financial aspirations.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you
I started out with a financial advisor called "Monica Selena Park". Her honest approach gives me complete ownership and control of my positions, and her rates are incredibly affordable given my ROI. However, do your due diligence before contacting a financial advisor.
I looked up the name and came across her web page, I went through her resume and I must say it was quite impressive. I reached out to her and I have scheduled a call with her.
In addition to all mentioned in the video there’s also probably less overthinking, resulting in more confidence and quicker decision making. 1% probably have a lot of their group who succeed through proximity to other successful people. .i.e. networking through either schooling, families etc
The swedish Wallenberg family is on their sixth generation of cultivated wealth. No one can study or work hard to get the Wallenberg family name. And when they appoint someone to chair their different controlling foundations, it's often another Wallenberg. Six generations is the upper national extreme. Most are 2-3 generations old. Wallenberg has their system of indirect control where individual parts of the family can't break things up. They're bound to their fortune.
I think it's the opposite. One with highest inteligence will sort out the problem faster. Will be more courioise,so will have more data to analize and correctly decide. But, in that regard, i think decision making is a skill. And most are not trained to assume responsability, and are always expecting others to take it from them.
I can concur with this take on why so many can’t become top 1%. Overthinking=stress= poor decisions. But also a lot has to do with luck. Being born into a wealthy family can be seen as very lucky. Or knowing someone whom is wealthy and kind. Or hitting it good with being nice to look at can also get you further in life. I’m an over thinker and a dreamer. I don’t do as much as I think and dream of things to do. I wasn’t in the lucky category with anything. Including brains. Mental illness and mental disabilities plague my overthinking mind. I’d love for a different brain. One that can work and do basic math and basic human social interactions. I can’t do either without falling apart and after overthinking about how much I’ve fallen and failed. And then intrusive thoughts of jumping off a high place. Yeah sounds sure smart brain. But also sounds really nice at times. I’m curious how other peoples brains work. Is it calm and peaceful? Or just as noisy and chaotic as my comment which would be worse if I didn’t delete half of what I was initially going to put. I can’t find an employer that can work with me. I can’t find a job. I’m that unable to do things. How in the heck am I going to get money when all I do is burden my parents with my brain. Like would it be best for the world if I never existed to begin with?
@@_Chessa_ you already know what you might have, so perhaps you might make your purpose to find how to get better? Chemical unbalance perhaps? Or you can investigate other thoughts so to overthinking about new ideas of instead focusing on yourself? Hope you find peace
@@PedroPereira-si3sy I’d love peace. Thanks for comment. I’m not sure if there is enough research on over thinking heads I’ve always liked reading up about new research on depression and anxiety/ptsd. Memory is also not a very strong point for me, so unless I write it down most things get forgotten. I focus on plants to keep my head busy. And I focus on trying to stop being self conscious and self absorbed.
"Be honest with yourself" is probably the best advice I've ever heard given by a KZhead channel. 90% of people think their IQ is above average, let that number sink in. 90% of people think they are smarter than average...
the 2nd time you said it really hit me, just sitting here with my jaw open in disbelief.
OTOH, being stupidly confident helps people project a much better image of themselves, effectively opening the doors to better jobs. People that know their own limits do not usually even dare to knock at those doors because of the doubts they have. This is not ideal. Have you not had mediocre bosses, managers, politicians or leaders that seemed to be there just because they had the guts to try in the first place, where others didn’t even dare to show up!?
ong. People dont understand this is a genetic thing. 100 IQ by definition is supposed to be the most common too.
Being dumb may also make you more likely to take risks. Like most things in life, you only need to be good enough and there is a factor of luck in terms of being at the right place, at the right time, with the right skill set. I think the biggest factor of success is recognizing opportunities. I see opportunities all the time, they are frequent, yet I see plenty of people oblivious to them.
Perfect
all you have to do is recognize the opportunity -Meyer Lansky aka the famous mob's accountant.
Honestly, from this, it seems that extreme wealth has more to do with luck and randomness than on merit
Higher iq people are also more often more self aware and more consciousness. They use their slightly higher intelligence to figure out that life is more than being rich and pivot alot of their energy to becoming more secure in themselves, stop chasing power and status and learn to find meaning through more healthy pursuits. That happened to me and personally I'm relatively wealthy compared to many of my richer friends, however I'm maybe the most mentally healthy.. I find that across most of my friends
What is your net worth and age?
Sounds like you figured out some mind tricks where you can tell yourself you’re ultra smart, ultra self aware, ultra conscientious, and that’s why it’s lucky you’re not truly successful. I can tell you have a job that pays pretty well, and now you’re unwilling to take the risks to switch into something with the potential to put you in the top 1%. So now you tell yourself that those people are actually the dumb ones who are sacrificing for unimportant things, where as you’ve got it all figured out. You’re in the smart but took the guaranteed low risk paycheck camp. The highest level requires being very intelligent yet with the balls to not settle into the easy academic then high paid job route, and instead struggling with different businesses until something clicks and you can unlock an absurd multiplier on the hours worked to income ratio. If you’re smart enough to earn 200k a year salary from a job, and start taking that, it becomes very hard to earn 0 (more likely lose money) for a few years whilst creating a highly scalable business. But until you have 10-20m you‘ll never have complete, true freedom. So that’s the price you’ll pay :)
Absolutely this.
@@jackjack4412 lol I think you missed the point
@sambo1023 I believe he's joking or could be a trap to get a rise from the person making the statement, thus taking away everything the individual has stated.
I studied physics in college and work as a software engineer. This video is true. I could go start businesses left and right and make 10x as much but at an opportunity cost of ~200k/year. Unless this business could make me 10M+, staying put has a better expectation value. I already have a fulfilling life lol
How you get to such a high required business value? If you'd choose the most promising of those alleged business ideas, keep your job until you get funding and proof of concept, you might get a 10% success chance. Then 2M+ would just be enough.
Overly confident
Arrogant outlook
@@Videos-xn6ssif 200k is "scraps" then what kind of money are you making?! 😮
Nope. You do not have the balls and ability to delegate
Last part hits kinda hard for me personally. I’m in uni, reading physics right now and my goal was to become a theoretical physicist but i’ve realised that i’m probably not smart/passionate enough compared to some of my peers. Mind you I’m not dumb by any means, but there are some people in my class that have placed high in math olympiads and won physics competitions and i just don’t think i can compete with that. Luckily i have the option to specialize in other things such as finance statistics, maybe i’ll start by becoming a quant and moving on from there, becoming a big fish in a small pond or something
And there are people that can manage those minds to create huge value.
Physics is hard AF and doesn't pay anything. Get a CIS degree like the rest of us
In my experience it's been more consistently "who" you know rather than "what" you know...and that can apply to being able to capitalize on opportunities in many fields. So..network, don't burn bridges, don't be scared to say hi or have a conversation/be friendly with people in influential and decision making positions. Be confident, but as the video says ..be honest with yourself and be humble also, not arrogant. Willing to learn, to hustle and sometimes fake it (a little), till you make it. Swing for the fences and ..when..you fall,.. get up, dust off and get back at it. Keep practicing, keep learning, keep pushing forward, keep smiling and keep being grateful for everything you learn or experience. That way..when the "who" you know has a need or an opening, you're the first person that comes to mind.
Learning How money works whilst eating a Plain Bagel, perfect
Watching a plain bagel whilst eating how money works, perfect.
@@Mezagodplays perfect
Perfection.
I am watching The Plain Bagel right after this. 👀
Don't forget a shot of Coffeezilla too
Even though you're differentiating between Professionals and Business owners, the principles apply even INSIDE of professional fields. The extremely high paid Doctors, Bankers and lawyers are all a lot more charismatic than intelligent, because at a certain point you have to "create" demand in these fields, aka manipulating or convincing people to buy your product/come to your clinic instead of the other ones
You get it!
Very true. I am for sure not one of the most intelligent people in the world. I can't even finish an IQ test because I think they are the stupidest way ever to judge intelligence. But, I know a few things very very deeply from lived experience. Deep self directed research etc. I could probably leverage these things to make a ton of money. But, I utterly abhor the sales tactics required to get people to even listen to me. .. Which sucks because some of these things are life changing. Like being able to manage allergies, pain etc with very very simple stress management techniques.
Your channel is the only thing that keeps me sane in this crazy financial world. Thank you.
The first sentence killed me 😂. "Dumb people makes a lot more money then smart people. And it took a lot of smart people doing a study to find it out" Imagin how the scientists must have felt when reaching that conclusion. Did they feel smart or dumb.
The med school fail/dropout comment hits too close to home. Luckily I have a stable career that pays decently well, but 12 years after leaving school I'm still paying off loans with tens of thousands left to pay off. Financially, it was by far the worst decision I ever and I'd have to make some really terrible decisions for that med school detour to fall to second.
Dam how much where your loans, undergrad and med school? and how far did you go (how many years or units did you have left to complete)?
What I love about this channel is that not only is the videos highly resourceful, the comments are filled with people with even more resources. Reading the comments is like watching a second equally useful video.
i agree
Yes..and all smart people too😀
SO TRUE!!!
There's also an aspect of what fulfills you at work here. The more intrinsic your values are the harder it is for someone to dangle a carrot in form of money to grab your attention. Past a certain point having more money becomes largely meaningless, esp for someone who doesn't derive their value from their possessions. If you're able to sustain your interests there is little reason to amass more money since it really wont affect you. Money past that point only offers new utility once you've amassed so much of it that it becomes power and most people with a highly developed mind and heart would never wish for power in the first place, since to them it is a burden, not a gift.
I can't express, how well-put, comprehensive and good this video is. EXCITING!
Perhaps smart people realize being at the top 1% is not worth the sacrifices.
So smart = lazy in the same way Big Bang + Time = Entropy
Bingo!
Or the risk
It's not like the middle class/upper middle class have the same class interests as the upper class.
That statement also justifies the 1% deserving it's wealth for taking the risk and making sacrifices.
For some reason, most of the class clowns from my high school ended up studying accounting and finance, and now working in the finance industry. A couple of them work in consulting companies. It's all about confidence.
Omg i was the class clown! Did STEM but my soft skills of speaking to people, managing work/expectations, and being able to translate requirements into agile stories led me to where I'm at. I'm 28 and earn $112k+ so far. Youngest, teammates are all 45+.
@@djm2189 what is an "agile story"?
@@katar9090 agile is a methodology like waterfall for projects. Stories are bite sized requirements we give to a developer. So I translate requirements from the business into agile scrumban stories that a developer works on. Then after a 2 week sprint we present to the business and ensure we are on the right path. Also do analysis on how many story points we can handle per sprint.
@@katar9090 it comes from agile management which has its origin in software development. Scrum is one very popular tool to utilize it.
So what?
Work smart and hard while having time management skills makes a job more bearable.Yeah I know it takes up a lot energy and effort, sometimes it’s worth it. You gotta look at the big picture and find where you belong.
I don't regret not doing a PhD (because you get paid nothing compared to what you're producing) and not doing a masters degree. I got a Bachelor in ECE and went into software engineering quicker than my national counterparts (I moved to the UK from Italy) and now I'm earning good money and I can see the career progression is quite good if I apply myself as I have done so far. I want to be a business owner but I'm definitely lacking capital and risk is rewarding but scary, definitely will look into this when I'm in a better position. As far as making top money, it doesn't really matter, as long as you're happy and earn well you'll be better off than being stressed in other work/business situations.
I'm an Optometrist with almost 20 years experience, and would suggest avoiding any profession that deals with insurance. Some insurers have paid me the same rates since 2005 and through inflation my services were more valuable back in '05 than today. My friend who runs a plumbing company dwarfs my income because he can constantly keep charging market rates. Life is still pretty good & could have turned out a lot worse.
Interesting. My job is to do google ads for optometrist and insurance is such a big constraint for growth.
Plumbing is Plumbing tho. I wouldnt do that for a million per month
There is a load full of irony between that statement and the profile picture
I remember how the Insurer chosen by my employer... had a list of about 250+ Practices... were they absolutely refused to process any claims from! I was flabbergasted! That's when I realized why Insurance companies are worth so much... and coveted by Investors: They're the legal MOB of the medical practitioners!!
Insurance companies prevent practices from making any consistent/ calculable profit. I know this from dealing first hand with medical billing data. They just say “no” to random bills or bills they dont like, and if you bill too much (though nobody defines what that means), they send in a corrupt auditor to shut down your facility. Absolute scam, they should be abolished.
it's not about smarts it's about guts. in human society, the one who has the audacity or privileged advantages to do something risky and highly profitable has always had the greatest influence and earnings.
Yup, that's my takeaway from this: - Smart people who make good, steady money are less likely to take risks. They fear for their reputation or family more than they should, which is being responsible. - Dumb people are more apt to take risks simply by virtue of who they are; they don't know they're "dumb", and they have a lot less to lose. If things don't work out for them, they just dust themselves off and try again.
@@darkseid2021 Except dumb people very very rarely get to the top 0.1% unless they’re the ultra outlier KZheadr or got extremely lucky. What’s far more likely, is someone who’s very smart yet doesn’t go the academic then high paid job route, and instead struggles with different businesses until something clicks and they can unlock an absurd multiplier on their hours worked to income ratio. If you’re smart enough to earn 200k a year salary from a job, and start taking that, it becomes very hard to earn 0 (more likely lose money) for a few years whilst creating a scalable business.
So, if we all had the guts to risk starvation to collectively stay put and refuse to contribute to the economy until demands are met, then we would all be more successful than if we did not all stop contributing to profit margins and productivity to make demands?
@@evilds3261 I think he was trying to argue that risk-taking is a privilege. If you don't have absolute financial security, you're going to have to commit to regular employment - because without that income, you're going to lose your home and and up in poverty. You can't invest in starting your own business, or spend years of your life making no income at all in higher education. But if you're from a background of wealth? Sure, you can do that. You've got savings to fall back on, and in the worst case the Bank of Mum and Dad will bail you out. Yes, you might lose the gamble - but doing so won't be catastrophic, so you can afford to try and perhaps make it to the big leagues when your company becomes a huge success.
what a dumb take
Well explained. Thank you for bringing up this video. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject ..... Thanks to Mylah Evander the lady you recommended.....
That woman totally changed my life for good. I have come across individuals but none is as honest as Mylah. So surprised you know her too.
MYLAH EVAN1
SHE'S MOSTLY ON TELEGAMS WITH THE ABOVE NAME!!!
True. Working in corporate America I know numerous people in highly paid management and supervisor positions that are completely useless and do nothing. Working hard matters but being in the right place at the right time along with having connections and being social will get you farther.
The top 1% is not full of influencers, it is full of people from already wealthy families
It’s a mix of that I believe. In order to make that much you have to abandon your ethics at least in America.
@@blink-my2955 No you don't. The millionaire Ive met were pretty decent, and humble people. Then again, they were also self made.
Not Oprah and Jay-Z
@@th3azscorpio The millionaires you met may be decent people for example investors or small business owners but, there also a lot of small businesses that get their resources in sketchy ways. That fact is even more true the richer you are so it isn’t really about personality. Don’t even get me started on corpos
@@blink-my2955 All of what you've stated is completely arbitrary, irrelevant to the point, and cant be quantified. Most businesses owners do not acquire their income via sketchy ways. Largely because their under higher scrutiny under the IRS, and the likely chances of being audited. The richer you are, personality is very much important. Especially for those self made. Without a good personality, its going to be quite difficult to network, develop good customer and employee relations, and sell whatever goods you have. Small business and corporations are not nearly even comparable. Perhaps lets get some actual life experience, and actually meet said rich people, and not try to base our perceptions around things we read on pro socialist leaning Twitter threads.
In high school I received the worst grades compared to my peers. I was probably the lower 20% in 12th grade. I joined the military when I was 19, served for 8 years and learned that I didn’t need to be smart, I needed to be ambitious. I buckled hard and 8 years later I’m cracking 130k per year. Compared to my peers today, I make 30 - 40k more. It’s ambition and goals setting.
I would argue its commitment and grit. commit to a plan/job/study and have the grit to see it through
Yep. In high school I was the only one who didn't finish it. I was however on the final picture. 3 years later I made it. Afterwards I studied and failed becoming a teacher for history and philosophy. Few years forward I'm specialist in Crypto and the only multimillionaire. And no, I have never scammed anyone. It's possible because of constant improvement. Average guy just stops learning and never shifts completely his mindset. I did. Average guy is not suitable to watch 12-16 (!) hours onto market charts and take on massive risk. His psyche isn't made for it. Average people also love to overestimate themselves, especially if they have a degree. They think they are badly intelligent like a friend of mine (MSc computer science). They told him that their technical university is elite, so they can promote themselves and he really believes it. But if you are elite, how come you work only for a bank and I am the rich guy??? His mindset isn't elite, it is mediocre. Per definition a mediocre mindset cannot achive top 1%. Only the hated, different mindset of a top 1% man can become self-made rich. The skillset for becoming rich hasn't much to do with college degrees. A degree you need to prove somebody like me, that you have a certain understanding of the topic. Not more.
That's because America experienced growth since 1991. The Soviet Union collapsed, and didn't experience growth. Therefore, I can't make $130k.
In the US there is a lot of skepticism towards college education and career vocation training because there are too many people in high positions who achieved those without them and too many KZheadrs showing off that they are earning six figure salaries with no education or training. I always get that kind of conversation from those kind of people who are high earners without degrees making fun of the college educated. One reason is because they started working at a younger age and built a better network and got into those positions because they have more years in the company as a result of starting early and being promoted after someone left, retired, or got promoted. I personally made the mistake of going to college and putting off full time employment during my prime years which put me behind from those peers who have more years of work experience which is more valuable than education.
@@jacqueslee2592 Same here. Resorted to Crypto speculation et voila. No traditional career needed anymore. A friend just asked me if I plan to finish my degree => no. There isn't any need to prove to anybody else that I'd be "good enough". Degree is only for future employer. But when there is no employer, then degree is useless.
Bayesian logic explains this very directly without much verbosity. Outstanding intellect is identified and nurtured for a small fraction of the population, and the probability of success for a new business is smaller. No contorted explanations needed.
I'm average and still struggle with finding an job, it kinda depends on what kind of decisions you make and how your relationships are, the less relationships you have it becomes harder to be anything. But even relationships mean nothing if you do combo of bad decisions that do not benefit you personally. My cousin is smart and works as engineer, makes enough money to fund a trip for whole family and had wedding last year, because he stayed committed to studying. So it all comes down to making decisions that benefit you, if you do decisions that have minimal benefits that aren't enough to sustain you or if you do bad decisions that do not benefit you at all you ain't going to have stable income nor you will be rich. 😂
There's also dumb luck an having connections.
My hypothesis is that smart people overthink things and second guess/overintellectualize too much, while the dumb people in question simply just do it and don't overthink too much. Some things can only be learnt though doing, like driving, riding a bike, learning to cook etc.
I'm surprised lotteries weren't mentioned at all in this. Buying a lottery ticket has an expected negative value - that's how the lottery works. But we still have a small minority of people who win the lottery. Everyone in that group of winners is someone who was willing to spend money on something with a bad risk-reward ratio, but that doesn't mean none of them won. People highly willing to take risks are going to naturally filter to the extreme ends of the scale. Or just be born rich enough you can keep taking risks until you win, that works better.
It takes the average lottery winner less than 5 years to waste all the lottery money.
Yep, exactly. So the main takeaway of this video is that the smartest people probably DO still make the most money but only AFTER you take into account the STEEP survivorship bias in the data. It's just like gun violence statistical bias. They never want to show you how many conflicts were avoided by brandishing a firearm... Just how many total deaths there were.
@@johanneswerner7649 One thing keeping the swedish Wallenberg family fortune intact is the limits placed on the family. No single member of the family can decide to suddenly dismantle the thing. They are bound to it, in a way.
Most lottery winners blow everything quickly. They need to be smart to keep that money
Pin this
This is something I released while I was in school and when I started to join the work force, I would work my ass off 50x because of my mental disorders and I still would get looked down on despite all the work and all the physical health risks I took it was a devastating discovery for me because I was told my whole life that if I was I worked hard and do good I would be successful and I would be able to live a good comfortable life but that was a dirty lie. I did try to go to college liked I dreamed but the disability program was useless they had no idea what they were doing. We need to rearrange the system where everyone is fully financially covered no matter what job and give more credit to the smart ones and start helping those who want to be successful.
but g1rls love to be poor n not recognize for the hard work tho
Nice video. Side note: -money symbolizes material value, time and other precious things. "People" will only give you money if they believe you can provide them a usefull service. Then, you either sell them a product or service (food, electronics, health, necessary assistance in case courts, etc) you convince them values their money... or, in even broader terms, you convince them you're the most adequate political leader to defend their interests, thus deserving a position and salary, and so on. That's one premisse. The other premisse is that people, by not being very smart, do not know how to precisely define what kind of product or service suits their real need, their priorities, being very common making poor judgments or even not being able to correctly asses that. And there comes the conclusion: extremely smart and useful people generally "sell", honestly (in general, by limiting the price to the real demand and interest), their skill, so that a person in need pays you for that, wether you're a liberal professional or employer. An enterpreneur (portrayed in the video by someone ambitious and generally not as intelligente as the previous class), explores to the most extreme possible limit the needs of people. Either by putting in the market a product or service that becomes a need, or by captivating or creating a tendency... or, most common, canalizes that need or group of needs in a way that people pay more than the required money the thing values. For instance, in a typical health need, the first group would conclude "well then I will become a doctor", and the second would prefer to open a hospital or a med school or health insurance plan or build medical machines...
You're seriously one of the most balanced, down to earth finance channels on KZhead today. Excellent work!
Wow, thank you!
@@HowMoneyWorks I have a feeling you like the Kardashians.. very much. 🤣
So true. No polarising nonsense, just factual info.
I always figured very smart people would be less likely to go into business for themselves because they recognize that most products and services in the economy are total bullshit, and they don't want to be caught dead selling them. Would a very smart person want to run a cosmetics company or be a fitness influencer? No, but a Kardashian sure would. To be very financially successful, you need to have the same tastes as your totally ordinary customers, and that means you need to be ordinary in some ways. If you see past all of the bullshit, you won't want to create more of it. Instead, once you have enough money, you will run far far away from it.
I'll have to disagree. In any aspect they are less likely to take any high risk.
No it's not about that I disagree their nis no person who knows every product
Always interesting, thank you.
My brother is highly intelligent but he couldn’t finish his university in Peru since we had to come to America! His only set back was language and now he is a business owner and we have only been here in America for 14 years. I’m so proud! 😊
I think I'm blessed because I get to be dumb AND broke.
Worst combo in life would be like: Dumb + broke + paraplegic + aids + cancer + Fibromyalgia + Old + Ugly + Born in 3rd world + no family * Paraplegic, not quadriplegic cuz the upper body must have working nerves to feel that Fibromyalgia, in order to qualify.
😅😅😅
@@djm2189 Thats not funny. I think he's serious.
@@theintrovertedaspie9095 😅😅😅
@@theintrovertedaspie9095 😅😅😅
What I think makes dumber people richer is, being charismatic, lucky, and being bold to take risks. All about being assertive, also to note that, of course, without luck, that risk can turn out bad.
Apart from luck, connections and charisma, the best gift for an entrepreneur is probably single mindedness. You need to have an overarching goal to succeed in business. It may be that "smart" people are too easily intellectually distracted, which prevents them from giving their all to a single challenge, or if they do become obsessed with a single objective, it is often not directly tied to financial gain.
Mr.beast talks about the single mindedness.
Im smart and should start single minded pursuits
The main thing I've learned from working in creative fields (design, film, etc.) for over 20 years is that your skills don't matter; who you know matters. The more people you know, the more you will know people in positions of power, and the more likely you will get a job, even if you're not fully qualified for it. Your odds increase tremendously if you're attractive and/or come from money.
Damn, this hits home. Academics, researchers and other similar career people undergo a lifestyle where sacrificing many years of one’s youth and being disciplined in order to acquire the knowledge needed to do well is paramount. Then, oddly enough, it seems that the supply vs demand equation is really not going to reward their sacrifices. These people are, usually, condemned to a life of mediocre material rewards, most nowadays not even being able to own their own home or start a family.
Academics is just a perfect example of how to exploit peoples need for status and prestige for profits...
When Confucius said, "A scholar sets his heart on the Way; if he is ashamed of his shabby clothes and coarse food, he is not worth listening to," I felt that.
For them, this work is partly a hobby, partly an addiction. So financially it's not the best choice, but they just like to live that way.
You’re literally one of my top3 favorite KZheadrs. I don’t know what I would do w/I your amazing videos. I just love how critical you are of basically everything especially given that you have an experience in the finance department.
I was told as a young man, "anyone can have money, it depends on what you are prepared to get it"
There are smart people who have no intention of earning money but rather live a more passionate, purposeful life which is a disadvantage because you are passionate on something and can't make a living out of it. Earning a lot of money is really based on luck and deceit. You have to step on other people to go to a higher level in the hierarchy.
It's harder when the upper class is in a position to change national policy more than others.
Or, better yet, refuse to create more people so that you have fewer expenses overall and fewer responsibilities to undertake. If enough people do this, then corporations will not be able to afford to be picky and will have to invest in the citizens or else the citizens will cease to continue investing in them.
@@evilds3261 So do you support closing our borders and shutting down immigration?
Something not mentioned: Highest-income earners might be "dumber", but intelligent people have higher salaries -- on *average* . So the chances of earning more than X is always (again, on average,) higher for intelligent people.
Yes, intelligent people will still make more on average, but once you get into the most wealthy people, luck and to a lesser extent social skills becomes the most important factor.
@@spiderduckpig yup, exactly what I said :) Thanks
I was expecting this to be usual short thought clickbait, but it's very well thought, validated some of my hunches, and made me think as well. Awesome!
It is because, to be successful is not about what you know, but who you know. This implies social capacity versus cognitive function.
"Most people in the top 1% are smart but their average is brought down by people like the Kardashians." Thats the funniest thing I've heard all day. 😂
and sadly also the truest
Why?
Is there any genuine logic to why they’re “not smart”? They chose a profession, are good at it, stick to their strengths, don’t meddle in any other field wasting time, also manage to keep a functional family and try to maintain friendly relations with people useful to their line of work, effectively using their available resources properly. All of this sounds like the definition of “smart”. So how exactly are they dumb?
@@LilacSreya listen to them talk. nothing going on upstairs hookers make far more than scientists
Kim almost passed the bar test, she scored pretty high actually. Kim is not dumb, just not crazy talented
There's one trait that matters more when it comes to income. The ability to influence people. No matter if it's your employer, your fans, your customers, etc. If you can persuade people to give you money..... presto!! You're rich!
Tried and true method throughout all of history. It can only go right if you're fine with being morally wrong. Human survival? Perhaps.
We praised IQ for so long, we didn't nurture EQ. Emotional intelligence is the key to building relationships, handling challenges, transitions, social politics and other stuff it takes to get ahead in life. It's okay to be an academic, a 9-5er, an entrepreneur or whatever else someone pursues to contribute value to society.
Everyone needs more than their salary to be financial stable. The best thing to do with your money is to invest it rightly, because money left for saving always end up used with no returns.
@carosullivan5567 Who is your financial coach, do you mind hooking me?
Am looking for something to venture into on a short long basis.
@@NatalieDormer-or4jj Cryptocurrency investment, but you will need a professional guide on that.
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Evelyn C. Sanders
This is great, as always. I've heard that people with Math Master's degrees earn more than those with Math PhDs for similar reasons pointed out in this video. The Ph.D.s have prestigious jobs, but people with MAs work in higher-paying industries.
True though math MAs are hardly "dumb"
With a math degree you can work in either technology jobs or finance jobs.
@@elosant2061 Yes, I agree. I doubt anybody who earns 1.4 million is really "dumb." But Math MAs are likely among the least dumb in the group! Ha.
@@TheChees1996 And if you're one of the very best experts in the subject you can work in academia to advance the field while earning crap.
@@vylbird8014Yeah the ppl who go into math academia aren't looking for money.
As a Swede who has done this test three times, I know the test involves reading comprehension, logical reasoning with a bit of science and spatial recognition (folding and turning boxes/figures). General cognitive ability.
If they're using the older tests, they would cover a huge amount of conscripts.
I'm dying at the very short clip of Spencer from Smosh as Evil Peter Parker shooting at himself with the web shooter at 1:18
You can always become good at something by killing the part of your ego which thinks that it knows something about the subject.. start thinking from the basics all over again
This explains all those business owners we met that made us wonder how they were able to stay in business for so long.
Thats cus smart people overthink shit lol. I learnt that the hard way. Like bro. Were all human. We make fuckups and we act like amateurs. Just wing shit and deal with the shitstorm as it comes. Thats just life. People who think their smart, are usually just overthinkers.
@@honkhonk8009Not so, smart people might overthink more often which leads to analysis paralysis. Has more to do with cognition than intelligence.
Smart people earn well, not great. The reason they earn well is due to the demand in their field and the scarcity in finding qualified candidates. But even smart people jobs are not safe from corporate greed and overtaxation. If you want to earn well, do a smart white collar job. If you want to earn amazing, then you need to make it your priority to chase the money...even if that does not benefit society in any way, shape or form. White collar work is cool. Chasing the money is a different world altogether.
Was working towards getting my PhD in biochemistry and researching extending human life span but the financial stress I was under was too much and I was burning out. Now I manage a chain of gas stations and should be able to retire early and go back to research in my later years.
I'm a strategy and transactions consultant, and I must say this is incredible analysis! Big ups!!!!
You don’t need to be smart to become rich, just be good with people, communication skills is key!
Being good with people and having communication skills requires intelligence. An analogy I use is that intelligence is like strength, there are different measurements of strength. Some people have a good bench press but a lousy squat and some people have a good squat but a crappy benchpress. Likewise there are different areas of intelligence.
@@robcubed9557 The Wallenberg family communicates inside the Wallenberg family. Mostly that they should elect another Wallenberg to chair their different foundations. Swedish upper class folks aren't showoffs the same way. Most of them prefer their privacy. They don't clown around on social media.
To be fair that requires intelligence of it's own. The video assumes rote learning is the only kind of intelligence out there. It's extremely narrow and flawed perspective. The videos on this channel brings interesting topics but get lost in the way to push a political viewpoint.
any tips on where can i enhance my communication skills?
@@ahmedyarkhan5169 Public Speaking classes, you’re welcome!
I love how Logan Paul was in the intro when you talked about "dumb" people.
It would be weird if he was NOT in the intro.
@@rumplstiltztinkerstein I'm not a fan of him but in this video kzhead.info/sun/bKh6ks95gayLlpE/bejne.html he scores 122 on an IQ test which is well above average.
@@Adiuveaui have an IQ of 120 and based on my dealings with most people, I am well above average. I believe the world average is 90-100. I have to assume that even the dumbest content creators only act that way because they know what appeals to the majority of society.
He isn't dumb though. He just pretends to be so that people call him dumb instead of malicious.
@@adamhercik581 he is a youtube scammer. Of course he is dumb. People that praise him are the ones who give him money whenever he pitches another of his crypto scams.
This doesn't even include people who see through the education system. Some people think mathematics is fiction, for example. Lots of professionals never even question mathematics and professional school entrance exams don't even allow applicants to question it. That alone filters out a lot of people who think for themselves. This is actually the main problem with standardized tests too, which basically no one talks about.
The greatest information I heard was that, the wisest person admits he knows nothing.
Apathy was my answer and I learned to get more bang for my life. One thing my professor taught me was that employers will always pay you less than your worth in order to remain profitable. Hence no matter who you work for you will always be paid less than your worth hence will never be rich. Moderation has always been the key to success. Knowing when enough is enough instead of trying to maximize every single decision is how you get ahead. Also there is a difference between being smart and being wise. I think wise people are likely to be rich compared to smart people who go by the books.
I mean that's kinda obvious though isn't it? How's the business supposed to be sustainable if you are payed every penny that you make for them.
I've always thought that the upper middle class was where very intelligent people where the most represented, for one it includes most engineers but also most niche extremely specialized professions.
@@Fishmans Sweden's Wallenberg family is an extreme example in how to keep a family company going. They're in their sixth generation right now. They're sort of... Separated from their own wealth, and bound to it. No individual Wallenberg heir can decide to just start selling off bits and breaking it up. Otherwise, family businesses don't seem to survive forever. Most of the oldest I've seen have been three generations.
Hoping to break into the upper middle soon. 28, engineer, earn $112k+. I know I'll continue to move up. As a poor kid, remember the moment I hit 100k at 26! Nearly cried 🥳
It's all about looks. A good looking guy doesn't need to learn or work as hard but still will make alot.
10:11 this part is really accurate and a lot of people need to hear this
There is one glaring omission from this study: Very few bosses will hire anyone who is smarter than they are!
Truth!!!!! 👏
A smart boss will
Ask your former boss why they hire people. You will be surprised at their reasons
Many factors to consider outside of cognitive ability to generate wealth: emotional intelligence, charisma, social connections, resources, risk tolerance, and early adoption of new and sustainable technology.
I've known a few very rich people, and I noticed that they were all business owners, not that smart but almost obsessively locked into their business goals in a strangely simplistic but not stupid way, could talk for hours about money and investments etc so there is a level of research/passion, and most had some connections that helped them (e.g. get good deals with suppliers) though they definitely put the work in.
This reminds me of an article I read a while back on “Why the laziest, incompetent and problematic workers get promoted to the supervisory and managerial positions” it’s basically the same type of people
There are two types of smarts. People/social smarts and book/technical smarts. It depends on how you apply them. Yes IQ plays a roll but I think most "smarts" can be learned over time. Figuring out how to learn is important as well.