Middle Class Millionaires
Posted on Thu ,23/07/2009 by adminHello!
I wanted to share an article with you that shows how the efforts and resources of LSI tie into one of the more recent modern trends: the emergence of a new class in society, the Middle Class Milionaire.
Here is the article.
By Thomas Kostigen, MarketWatch
SANTA MONICA, Calif. (MarketWatch) — Those with a net worth of between $1 million and $10 million — that they have earned rather than inherited — are being dubbed “middle-class millionaires,” a group that has grown on the heels of the economic boom over the past couple decades.
Middle-class millionaires now account for 10% of the U.S. population, according Russ Alan Prince and Lewis Schiff, who coined the term for research purposes and a new book by that name. They studied almost 4,000 households to better understand attitudes, values and purchasing patterns.
Their findings include:
7.6% of American households, or 8.4 million households are middle-class millionaires
The average middle-class millionaire works 70 hours per week
Middle-class millionaires are five times more likely than the average worker to say they are always available for work
89% believes that anyone can attain wealth through hard work
62% believes that networking, or knowing many people, is the key to financial success
Nine out of 10 middle-class millionaires say they made a bad career or business move, but almost three-fourths say that was crucial to their business success
They are five times more likely than the average middle-class person to continue on in the same business course in spite an earlier failure
65% of middle-class millionaires characterize their approach to negotiating as “doing whatever you need to do to win”
They say they need a net worth of $24 million to feel wealthy, and $13.4 million to be considered rich.
Prince and Schiff also found that almost half of middle-class millionaires believe a child’s academic achievements reflect one’s success as a parent.
Seventy-five percent of this group chose their home because of its school system. And only 14% of them trust the government.
This separates middle-class millionaires from the middle class in general: Only 16% of middle-class households were ready to put their own reputation on the lines when it comes to their kids’ academic record, according to Prince and Schiff.
More than half of middle-class households chose their homes because it was close to work. And an almost equal amount believes the government has their back, Prince and Schiff say.
The differences may be stark, but Prince and Schiff see that changing. They describe middle-class millionaires as “the rise of the new rich and how they are changing America.” The changes they see are evident in four areas: hard work, networking, persistence and financial self-interest.
Trickle-down effect
These traits may differ from those in the middle class but their offspring, in the form of goods and services, are making their way “downstream.”
“From life coaches to luxury vacation rentals, concierge medical care to high dollar prep course into the Ivy League [these things] are making their way downstream, steadily becoming available to a much broader population,” Prince and Schiff say. “What was once the province of only the super rich is now being created and packaged for the ‘downline’ population or for those with fewer zeros in their net worth, but similar aspirations.”
Collectively, the authors say, middle-class millionaires are influencing, advocating and reshaping the social, cultural and commercial landscape of our world.
It’s a whole new level of keeping up with the Joneses.
Take the OnStar navigation system. It began as an emergency road service for high-end luxury vehicles. Now it’s even offered on midrange trucks. Similar trends are occurring in real estate, vacations, airline travel and other services.
We may have to begin adding some new class structures in America. Otherwise we may all soon belong to the same one.
(end of article)
Additional Information
One thing missing from the above article which I found in further researching this subject is the following from author Lewis Schiff:
´… the four main characteristics of a millionaire were that they were hard working, networked, (were) persistent even in the face of failure, and put themselves in the flow of money´.
These are the 4 characteristics needed to make it, but further from the same author in answering questions about Middle Class Millionaires:
´You don’t need to have equal amounts of all four characteristics to achieve the success that Middle-Class Millionaires have achieved. You may be a very hard-worker, willing to go the extra mile, but not a great networker, and still achieve the success of the Middle-Class Millionaire. In fact, it’s extremely rare that we find anyone who’s really good at all four Millionaire Intelligence (“MI”) characteristics.
´There is one MI characteristic, however, that is particularly important: Enlightened Self-Interest. People who don’t place their goal of financial independence above other professional goals will likely not achieve it.
´You can be a hard working (MI Characteristic #1), networking (MI Characteristic #2), persevering (MI Characteristic #3) high school chemistry teacher. But if you don’t find a way to put your goal of wealth accumulation above those other very admirable accomplishments, you are not likely to achieve that goal¨.
You are welcome to join us in LSI, where you will find a series of courses (do them first, pay after) that will ingrain the Science of Success into your life and assist you to become a millionaire, whether it takes 1 year or 10 years. We do not accept that it needs to take longer than that.
Pick up your copy of the Science of Success book (no charge) at this link.
http://www.lifesuccessinst.com
best wishes,
Ron Sedlak
Life Success Institute