Why You Will Never Be Rich

We all want to be rich, but what are that chances that you will ever become rich? Why is it so hard to go from poor to rich?

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Does being rich make you happy?

That's the billion-dollar question, but
most experts on the matter agree that having

certain freedoms and securities that come
with having lots of money does indeed improve

our feeling of well-being.

Psychologist Daniel Kahneman and economist
Angus Deaton concluded that once you have

an income of over $75,000 a year, you won't
necessarily get happier with even more cash,

because it's the safety net and opportunities
afforded to people that really help maintain

some level of happiness.

A life of penury is often full of fears, set-backs,
drudgery, and having to see all the time all

the things you can't have.

But then something called the Easterlin paradox
tells us while rich folks are happier than

poor folks, rich countries are not necessarily
happier than poor countries.

Today we'll explore this, in this episode
of the Infographics Show, Why You Will Never

Be Rich.

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So, what are your chances of becoming rich?

Before we answer that, we need to know how
much money you need to be considered rich.

This is obviously relative to every country,
but one would think if you have a million

dollars in your bank account, you can say
you are rich.

However, it seems people don't always think
this way.

In 2013, a report by investment bank UBS stated
that only 28 percent of people with $1-$5

million thought they were rich.

Even more surprising was that only three out
of five people with more than $5 million thought

they were rich.

The report focused on assets, not cash in
hand.

Still, who would have thought with over five
million bucks in assets, many people wouldn't

consider themselves rich.

It would be quite confusing to talk about
relative wealth in every country, so let's

stick with the United States.

There we have the mega-rich, the 563 billionaires,
but we also have a lot of just plain old rich.

As for millionaires in the country, a World
Health report told us there were 4.8 million

of them in 2016.

Many of those may not consider themselves
rich, but many of us would say they are doing

pretty well.

The U.S. Census Bureau states that median
net worth of a 35-year-old in the USA is about

$35,000.

It goes up with age, and from 55-64 it's
almost $150,000.

It peaks at 65-69 at just under $195,000.

We couldn't say these people are rich.

Even the top 10 percent might not be considered
rich.

The Internal Revenue Service reports that
the average household income for the top 10

percent of U.S. earners is $295,845.

For the top five percent, it's $350,870.

The average for the top one percent is well
over one million dollars.

For argument's sake, let us say that if
you are in that top five percent you are rich,

never mind what you think of yourself.

How hard is it to get into that bracket?

It's actually quite hard, given that money
often begets money, and unfortunately breaking

out of poverty is no easy task.

There is an old saying that goes, “The rich
get richer and the poor get poorer.”

But what does this mean?

For starters, most people who earn the big
money have a university education.

As you'll know from our other money-focused
shows, many tech entrepreneurs drop out of

university, but most of them grew up in affluent
families where they were afforded all kinds

of comforts and opportunities poor people
are not.

In Malcolm Gladwell's book, “Outliers”,
he points out that there are no self-made

millionaires.

Most people were helped with luck on the way,
and often this luck meant supportive parents,

good schooling, and having fostered in them
that they can do anything they want.

You'll also know from watching our other
shows that there is a direct affect on how

much money you have, to how far you go in
education.

Statistics differ depending on what you read,
but it's thought that around 30 percent

of Americans over the age of 25 have a bachelor's
or master's degree.

The Atlantic tells us that more than 70 percent
of those that went to the top universities

came from America's wealthiest families.

These guys will no doubt have no problems
paying off their student debt, if they had

student debt.

In 2017, Forbes reported that the Class of
2016 had $37,172 in student loan debt.

If you are not from a wealthy family, then
you are already struggling just when you get

going.

So, how do you get rich when you come from
meagre beginnings, given that you might have

had only a basic education or that your education
became a financial albatross around your head.

Still, back in 2012, a Gallup poll revealed
that 28% of Americans expected to get rich

at a time in their lives.

That's positivity for you, but this is a
country full of natural born American dreamers.

Many will be disappointed, especially if we
realize that about 60 percent of American

wealth is inherited.

That means that those hoping to get into the
five percent already have to contend with

those already in the five percent.

It seems they are not making much headway
either.

An article in Evonomics tells us that “The
rich are getting richer, faster.”

At the same time, the poor and middle classes
are not going anywhere fast.

“Because wealth begets more wealth, it's
a self-perpetuating picture,” said the economics

website.

Wealthy households usually hang on to their
wealth, whereas less wealthy households face

all manner of dilemmas.

In 2017, CNBC wrote that the average American
family owes $8,377, and that means you'll

be paying off interest on that.

Rich folks buy their goods outright for the
most part, and so as a poor person you are

continually being faced with borrowing fees.

When you are struggling to pay for things
outright, you are prey not only to lenders

but to the system.

Did any of you watch John Oliver on Last Week
Tonight when he showed how many Americans

actually end up in jail for municipal violations.

That's right, when you can't pay a parking
ticket, things can just pile up.

As Time magazine pointed out, when you are
wealthy, a violation is no big deal, but when

you are poor “tickets can wreck your life.”

For not paying immediately, additional fees
arrive, and then if you can't pay the fine

you, could be locked up.

If you ever need a lawyer and you are poor,
you won't be able to hire yourself someone

totally dedicated to you, which is one reason
why rich people can get away with things.

We could say the same about medical treatment.

If you live hand to mouth and can't afford
insurance, but need medical attention, that

bill could ruin your life.

Being sick could take all the money you'd
saved to send your child to college.

Being sick, physically or mentally, could
be on the cards given you might not be able

to afford nutritious, naturally grown foods
for every meal.

Poor and sick in America is an endless money
pit.

One health journal stated that in the USA,
38.2 percent of poor people are in “fair

or poor” health, compared to 12.3 percent
of the affluent.

One millennial writing about how “screwed”
his generation is, wrote in an article featured

on Highline, “My rent consumes nearly half
my income, I haven't had a steady job since

Pluto was a planet and my savings are dwindling
faster than the ice caps the baby boomers

melted.”

This is a generation that is growing up when
all the media is telling them the robots are

coming and automation will take all the jobs.

If you're rich, it's likely you'll find
those niche jobs, or your family will own

the company that employs the robots.

This is a generation that has around 30 percent
more student debt than its parents did, and

those are the ones fortunate enough to have
gone to college.

People born in this generation are also half
as likely as their parents ever to own a house.

The American Dream may just be a myth, as
money doesn't always trickle down and swimming

upstream isn't as easy as people may have
once thought.

Researchers at the University of Illinois
found in 2015 that, “The United States is

faced with record levels of income inequality
and one of the lowest rates of actual social

mobility among industrial nations.”

It seems for the most part you are what you
are born to be, and that means the rich stay

rich and most of you will not be part of that
club.

Or, do you disagree?

Please let us know in the comments why you
will be different and why you will definitely

be rich!

Also, be sure to check out our other video
called 10 Surprisingly High Paying Jobs!

Thanks for watching, and, as always, don't
forget to like, share, and subscribe.

See you next time!