Why You Will Never Be Rich
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0:00 - 0:02Does being rich make you happy?
-
0:02 - 0:05That's the billion-dollar question, but
most experts on the matter agree that having -
0:05 - 0:10certain freedoms and securities that come
with having lots of money does indeed improve -
0:10 - 0:11our feeling of well-being.
-
0:11 - 0:16Psychologist Daniel Kahneman and economist
Angus Deaton concluded that once you have -
0:16 - 0:21an income of over $75,000 a year, you won't
necessarily get happier with even more cash, -
0:21 - 0:26because it's the safety net and opportunities
afforded to people that really help maintain -
0:26 - 0:28some level of happiness.
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0:28 - 0:33A life of penury is often full of fears, set-backs,
drudgery, and having to see all the time all -
0:33 - 0:35the things you can't have.
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0:35 - 0:39But then something called the Easterlin paradox
tells us while rich folks are happier than -
0:39 - 0:44poor folks, rich countries are not necessarily
happier than poor countries. -
0:44 - 0:48Today we'll explore this, in this episode
of the Infographics Show, Why You Will Never -
0:48 - 0:49Be Rich.
-
0:49 - 0:52Don't forget to subscribe and click the
bell button so that you can be part of our -
0:52 - 0:53Notification Squad.
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0:53 - 0:55So, what are your chances of becoming rich?
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0:55 - 1:00Before we answer that, we need to know how
much money you need to be considered rich. -
1:00 - 1:03This is obviously relative to every country,
but one would think if you have a million -
1:03 - 1:06dollars in your bank account, you can say
you are rich. -
1:06 - 1:09However, it seems people don't always think
this way. -
1:09 - 1:15In 2013, a report by investment bank UBS stated
that only 28 percent of people with $1-$5 -
1:15 - 1:18million thought they were rich.
-
1:18 - 1:23Even more surprising was that only three out
of five people with more than $5 million thought -
1:23 - 1:24they were rich.
-
1:24 - 1:26The report focused on assets, not cash in
hand. -
1:26 - 1:31Still, who would have thought with over five
million bucks in assets, many people wouldn't -
1:31 - 1:32consider themselves rich.
-
1:32 - 1:36It would be quite confusing to talk about
relative wealth in every country, so let's -
1:36 - 1:37stick with the United States.
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1:37 - 1:43There we have the mega-rich, the 563 billionaires,
but we also have a lot of just plain old rich. -
1:43 - 1:48As for millionaires in the country, a World
Health report told us there were 4.8 million -
1:48 - 1:49of them in 2016.
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1:49 - 1:53Many of those may not consider themselves
rich, but many of us would say they are doing -
1:53 - 1:54pretty well.
-
1:54 - 1:59The U.S. Census Bureau states that median
net worth of a 35-year-old in the USA is about -
1:59 - 2:01$35,000.
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2:01 - 2:07It goes up with age, and from 55-64 it's
almost $150,000. -
2:07 - 2:10It peaks at 65-69 at just under $195,000.
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2:10 - 2:14We couldn't say these people are rich.
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2:14 - 2:16Even the top 10 percent might not be considered
rich. -
2:16 - 2:20The Internal Revenue Service reports that
the average household income for the top 10 -
2:20 - 2:25percent of U.S. earners is $295,845.
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2:25 - 2:29For the top five percent, it's $350,870.
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2:29 - 2:33The average for the top one percent is well
over one million dollars. -
2:33 - 2:37For argument's sake, let us say that if
you are in that top five percent you are rich, -
2:37 - 2:39never mind what you think of yourself.
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2:39 - 2:41How hard is it to get into that bracket?
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2:41 - 2:45It's actually quite hard, given that money
often begets money, and unfortunately breaking -
2:45 - 2:48out of poverty is no easy task.
-
2:48 - 2:51There is an old saying that goes, “The rich
get richer and the poor get poorer.” -
2:51 - 2:52But what does this mean?
-
2:52 - 2:56For starters, most people who earn the big
money have a university education. -
2:56 - 3:01As you'll know from our other money-focused
shows, many tech entrepreneurs drop out of -
3:01 - 3:04university, but most of them grew up in affluent
families where they were afforded all kinds -
3:04 - 3:07of comforts and opportunities poor people
are not. -
3:07 - 3:12In Malcolm Gladwell's book, “Outliers”,
he points out that there are no self-made -
3:12 - 3:13millionaires.
-
3:13 - 3:16Most people were helped with luck on the way,
and often this luck meant supportive parents, -
3:16 - 3:20good schooling, and having fostered in them
that they can do anything they want. -
3:20 - 3:23You'll also know from watching our other
shows that there is a direct affect on how -
3:23 - 3:26much money you have, to how far you go in
education. -
3:26 - 3:30Statistics differ depending on what you read,
but it's thought that around 30 percent -
3:30 - 3:33of Americans over the age of 25 have a bachelor's
or master's degree. -
3:33 - 3:38The Atlantic tells us that more than 70 percent
of those that went to the top universities -
3:38 - 3:40came from America's wealthiest families.
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3:40 - 3:43These guys will no doubt have no problems
paying off their student debt, if they had -
3:43 - 3:44student debt.
-
3:44 - 3:51In 2017, Forbes reported that the Class of
2016 had $37,172 in student loan debt. -
3:51 - 3:55If you are not from a wealthy family, then
you are already struggling just when you get -
3:55 - 3:56going.
-
3:56 - 3:59So, how do you get rich when you come from
meagre beginnings, given that you might have -
3:59 - 4:04had only a basic education or that your education
became a financial albatross around your head. -
4:04 - 4:09Still, back in 2012, a Gallup poll revealed
that 28% of Americans expected to get rich -
4:09 - 4:11at a time in their lives.
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4:11 - 4:16That's positivity for you, but this is a
country full of natural born American dreamers. -
4:16 - 4:19Many will be disappointed, especially if we
realize that about 60 percent of American -
4:19 - 4:21wealth is inherited.
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4:21 - 4:24That means that those hoping to get into the
five percent already have to contend with -
4:24 - 4:26those already in the five percent.
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4:26 - 4:29It seems they are not making much headway
either. -
4:29 - 4:33An article in Evonomics tells us that “The
rich are getting richer, faster.” -
4:33 - 4:37At the same time, the poor and middle classes
are not going anywhere fast. -
4:37 - 4:41“Because wealth begets more wealth, it's
a self-perpetuating picture,” said the economics -
4:41 - 4:42website.
-
4:42 - 4:46Wealthy households usually hang on to their
wealth, whereas less wealthy households face -
4:46 - 4:47all manner of dilemmas.
-
4:47 - 4:53In 2017, CNBC wrote that the average American
family owes $8,377, and that means you'll -
4:53 - 4:55be paying off interest on that.
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4:55 - 4:59Rich folks buy their goods outright for the
most part, and so as a poor person you are -
4:59 - 5:01continually being faced with borrowing fees.
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5:01 - 5:05When you are struggling to pay for things
outright, you are prey not only to lenders -
5:05 - 5:06but to the system.
-
5:06 - 5:10Did any of you watch John Oliver on Last Week
Tonight when he showed how many Americans -
5:10 - 5:13actually end up in jail for municipal violations.
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5:13 - 5:17That's right, when you can't pay a parking
ticket, things can just pile up. -
5:17 - 5:21As Time magazine pointed out, when you are
wealthy, a violation is no big deal, but when -
5:21 - 5:24you are poor “tickets can wreck your life.”
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5:24 - 5:28For not paying immediately, additional fees
arrive, and then if you can't pay the fine -
5:28 - 5:29you, could be locked up.
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5:29 - 5:32If you ever need a lawyer and you are poor,
you won't be able to hire yourself someone -
5:32 - 5:37totally dedicated to you, which is one reason
why rich people can get away with things. -
5:37 - 5:39We could say the same about medical treatment.
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5:39 - 5:42If you live hand to mouth and can't afford
insurance, but need medical attention, that -
5:42 - 5:44bill could ruin your life.
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5:44 - 5:48Being sick could take all the money you'd
saved to send your child to college. -
5:48 - 5:52Being sick, physically or mentally, could
be on the cards given you might not be able -
5:52 - 5:56to afford nutritious, naturally grown foods
for every meal. -
5:56 - 5:58Poor and sick in America is an endless money
pit. -
5:58 - 6:03One health journal stated that in the USA,
38.2 percent of poor people are in “fair -
6:03 - 6:06or poor” health, compared to 12.3 percent
of the affluent. -
6:06 - 6:10One millennial writing about how “screwed”
his generation is, wrote in an article featured -
6:10 - 6:15on Highline, “My rent consumes nearly half
my income, I haven't had a steady job since -
6:15 - 6:20Pluto was a planet and my savings are dwindling
faster than the ice caps the baby boomers -
6:20 - 6:21melted.”
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6:21 - 6:25This is a generation that is growing up when
all the media is telling them the robots are -
6:25 - 6:27coming and automation will take all the jobs.
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6:27 - 6:31If you're rich, it's likely you'll find
those niche jobs, or your family will own -
6:31 - 6:33the company that employs the robots.
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6:33 - 6:37This is a generation that has around 30 percent
more student debt than its parents did, and -
6:37 - 6:40those are the ones fortunate enough to have
gone to college. -
6:40 - 6:45People born in this generation are also half
as likely as their parents ever to own a house. -
6:45 - 6:49The American Dream may just be a myth, as
money doesn't always trickle down and swimming -
6:49 - 6:52upstream isn't as easy as people may have
once thought. -
6:52 - 6:56Researchers at the University of Illinois
found in 2015 that, “The United States is -
6:56 - 7:00faced with record levels of income inequality
and one of the lowest rates of actual social -
7:00 - 7:02mobility among industrial nations.”
-
7:02 - 7:06It seems for the most part you are what you
are born to be, and that means the rich stay -
7:06 - 7:10rich and most of you will not be part of that
club. -
7:10 - 7:11Or, do you disagree?
-
7:11 - 7:15Please let us know in the comments why you
will be different and why you will definitely -
7:15 - 7:16be rich!
-
7:16 - 7:20Also, be sure to check out our other video
called 10 Surprisingly High Paying Jobs! -
7:20 - 7:23Thanks for watching, and, as always, don't
forget to like, share, and subscribe. -
7:24 - 7:24See you next time!
- Title:
- Why You Will Never Be Rich
- Description:
-
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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Sources for this episode:
https://pastebin.com/wVTSQcvdSome Images used under license from Shutterstock.com
- Video Language:
- English
- Duration:
- 07:25
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Alexandre Clemente edited English subtitles for Why You Will Never Be Rich | |
![]() |
Alexandre Clemente edited English subtitles for Why You Will Never Be Rich | |
![]() |
Alexandre Clemente edited English subtitles for Why You Will Never Be Rich |