Perpetual optimism is a force multiplier.
–Colin Powell
You are far more likely to acquire wealth if you are an optimist.
In the last post, I made described why optimism can help you to succeed. In this post, we will describe research done on the attitudes of the wealthy and how you can imitate them.
The vast majority consider themselves to be optimists. Rainer Zitelmann, author of “The Wealth Elite,” found that optimism is the strongest single characteristic the ultra-wealthy have.
HIGH NET WORTH INDIVIDUALS
When possible, I have tried to highlight Ultra High Net Worth Individual’s (UHNWI) attitudes.
The UNHWI category is elite. There are three defined wealth categories based on an individual’s net worth:
- Over one million dollars–you are considered a high net worth individual (HNWI). There are about 6.5 million people in the US who are in this category,
- Over five million dollars—you are designated a very high net worth individual (VHNWI).
- Over thirty million dollars—you are designated as an Ultra High Net Worth Individual. There are only about 200,000-250,000 of these individuals in the US. Zitelmann worked exclusively with this group.
STUDIES OF THE ATTITUDES OF THE WEALTHY
Most researchers measure attitudes by a methodology called the “Big Five.” The five factors are:
- Openness to experience—this can include characteristics such as intellectual curiosity and imagination and creativity
- Conscientiousness–this aspect means demonstrating value for an idea and people by staying organized, working hard, sticking to missions and duties, and meeting deadlines to pursue a goal.
- Extroversion can be achieved by maintaining contact with other team members or individuals and providing feedback and/or direction. Now, while this measure typically favors outgoing people, introverts can also achieve great wealth and success by developing their own set of strengths–or by delegating the duties that require extroversion to subordinates. See here.
- Agreeableness is the ability to get along and maintain relationships with others by demonstrating empathy and respect. Another factor is the implicit trust of others. Finally, it involves recognizing the value of the people with which you work or cooperate.
- Neuroticism—is a tendency toward self-absorption and narcissism, emotional instability, anxiety, and depression.
When you look at these five measures, the wealthy differ in some critical ways from the rest of the population. As a rule, they are optimistic, but that optimism expresses itself differently. Here are some of the more detailed findings.
THE WEALTHY RATE HIGHLY ON BEING OPEN TO NEW EXPERIENCES
Openness to new experiences is one of the defining traits of successful and high-net-worth individuals.
This trait may be one of the most significant differences between the wealthy and the rest of us.
To explain why consider the characteristics of negative people. Many negative people believe that a new experience is best left untried. In other words, they are often unwilling and unable to act and retain control over their lives by saying “no.” Their mantra often is, “we have never done it that way before.” Trying something new requires courage, effort, and intellectual curiosity.
That is one of the reasons that the successful avoid negative individuals.
THE WEALTHY ARE CONSCIENTIOUS
I don’t mean here that the wealthy are always courteous or well-behaved. Instead, this factor involves taking the time to organize and manage activity. In other words, instead of treating an inspiration or effort as random, there is a conscious effort to value it. Valuing comes from demonstrating organization, consistency, and reliably contributing to an idea or initiative and its development. Put a different way, this extra effort shows optimism about the outcome of the use of time and resources.
THE WEALTHY RATE HIGH IN EXTROVERSION
Social connections matter. These can be with friends, family, or co-workers. The trait usually shows itself in most people by being outgoing, exhibiting high energy, and being talkative. Extroverts draw energy from being with others.
Extroversion also drives how the wealthy behave. Wealthy individuals tend to be assertive when engaging in extroverted activities. So, they are often directive. They continually check in with others and make clear what they want.
THE WEALTHY HAVE A HIGH AGREEABLITY RATING
Again, this goes along with optimism. Agreeability means relating to others and using communication to establish common ground. They are optimistic enough to trust others as they move toward their goals and empathetic enough to understand others’ feelings and actions.
However, a warning sign is when empathy is only skin deep. See the section on narcissism below. And see here for a description of sociopaths—they have no empathy at all but have learned to act as if they do.
NEUROTICISM—THE WEALTHY ARE, WELL–IT IS COMPLICATED
If there was one characteristic where the wealthy don’t rate well, this is it. The good news: researchers found that they are emotionally stable—a significant factor in success. However, there are other characteristics too, and they are not as positive.
They are often:
- Narcissistic—i.e., entitled, manipulative, needing admiration, lacking empathy, and arrogant
- Overly confident they can influence an outcome—this is optimism too but taken to an extreme degree. In researchers’ parlance, the wealthy are high in an internal locus of control. As a result, they (almost) believe that no one else exists. Or they ignore influences outside their world and deny external reality.
It is hard to know whether they become successful because of narcissism, their high confidence level, or their strong sense of control over their life. It could be that the opposite is true: they become narcissistic because of their success and talent.
HEALTHY SKEPTICISM
I don’t want to leave you with the idea that you will always succeed with boundless optimism and emotional stability. For instance, optimists who start new businesses tend to go broke more often because they fail to assess the difficulty and risks.
Overconfidence can work against you sometimes. Therefore, I try to balance optimism with skepticism in my own life. Skepticism is not always negative; it is questioning. Skepticism is also about asking yourself if something is true or will work. Skepticism allows you to look hard at the downside and make an objective assessment. It is also about sifting the truth from the false.
STAYING GROUNDED
I have a friend who has met several of the wealthiest people in the world. And he warns me about admiring the rich too much. He has told me that he has met some who are astoundingly arrogant and rude and demeaning beyond belief.
And I know that is true. I have met some of the uber-wealthy too. And many ARE different—and not always in a good way. But to be fair, most are well adjusted. But not always.
While it seems to me that while wealth creation can create some unhealthy people, that is partly their choice. So, if you are fortunate enough to make the wealth journey and get there, stay with friends and family who will tell you the truth and are not afraid to be critical. And take the time to care about others through actions, philanthropy, and any other way you might give back.
CONCLUSION: WHAT IT MEANS FOR YOU—HOW DO YOU RATE ON THE FIVE FACTORS?
Wealth creation and the attitudes that feed it are complicated.
But it is reasonable to ask yourself: are you optimistic enough to be open to new experiences or conscientious enough to organize and care for ideas you want to develop? Are you optimistic enough to take the time to work on the social relationships that help support your ideas and involved enough to see them through? And are you well-adjusted, persistent, and confident enough to implement your ideas while (I hope) avoiding the neurotic, self-absorbed behavior?
The most successful people do that. They are optimistic about their prospects and learn how to cover the weaknesses they have. Many envision success and then work to get there.
Photo credit: Anthony DELANOIX License: Unsplash
Disclaimer: consult with a financial fiduciary before taking any steps outlined here. Not all advice may be suitable for your circumstances or investment style