What Do Rich People Have in Common?

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What does it actually mean to be rich? 

Over 2,000 years ago, “rīkijaz” was the word that evolved into “rich”. It was in use before Jesus wore shorts and it meant essentially the same thing as it does today, but with a twist - it also had concepts like ‘king’ (or ‘kingly’), ‘noble’, ‘powerful’, and ‘rule-over’, strongly intertwined with the financial aspect of its meaning. And this is probably of no surprise to anyone. Money is certainly a powerful tool (perhaps THE most powerful tool) for getting just about anything done and for getting respected (and sometimes hated) by others - little has changed in that sense. 

How much money does it take to be rich? 

A poll of over 50,000 Australians, conducted in 2023 by news.com.au showed that being rich meant being paid more than $250,000 per year. This sounds like a surprisingly (and refreshingly) low bar, right? Finding a consensus, however, on what NET WORTH is required, to be considered rich, was difficult. In Australia where the AVERAGE house price is $925,000 (Forbes Australian Property Forecast: What’s In Store For 2024?) it doesn’t make sense to consider someone rich if they merely have enough to buy a single average home. So, for convenience sake, lets just say, at least in Australia, your net worth would have to be in the AU$ millions (which would also make you a 'millionaire') for you to be comfortably considered rich - makes sense, right? 

Well, having said all that, what it REALLY means to be rich is UP TO YOU.

Is this what being rich looks like? What does being rich look like to you?

The Data is Clear: Rich = Entrepreneur

Recent research has dispelled a common belief that most millionaires inherited their wealth or got wealthy from investing in stocks or other methods. 

While the press often highlights inheritance and various investments as a path to wealth, a closer examination of the world's richest individuals reveals that the majority accumulated their wealth through entrepreneurship. (Forbes: "Most Rich People Build Their Wealth As Entrepreneurs, Not With Stocks”)

Also, data from Fidelity Investments, among other credible sources, reveal that a majority, specifically more than two-thirds, of millionaires have actually built their wealth independently. These self-made millionaires typically own business (in whole or in part), and therefore could also be considered 'entrepreneurs'. 

So, now that we've made the connection between wealth and entrepreneurship, let's roll with it. 

Traits of Rich Entrepreneurs

The list below is by no means definitive and the priority or importance ranking of this list is up to you - and that will likely change as you and your circumstances change.

• Curiosity plays a fundamental role in motivating continuous learning and the pursuit of new opportunities. Curious entrepreneurs are more likely to explore untapped markets and innovate.
  
  
• Adaptability: Regarded highly as it is crucial in the ever-changing business landscape. Entrepreneurs must be able to pivot strategies in response to market shifts or challenges.
  
  
• Perseverance: Perseverance is the quality of continuing to pursue a goal or action in spite of difficulties, challenges, or delays in achieving success. You'd be hard pressed to find a single successful entrepreneur who doesn't have the trait of perseverance.
  
  
• Mentorship: People and business are complex and nuanced, so being able to closely interact with someone (or people) you respect or aspire to be, about where you want to go, is a powerful aid. With good mentoring, you will discover insights and practical guidance that you wouldn’t be able to find with 10,000 Google searches and dozens of hours invested in watching YouTube ‘experts’. Another benefit of mentors is they’re often a rich source of high-quality network.

For Chad, being rich means he can spend more quality time with his wife and sister

• Risk Tolerance: Entrepreneurs must be willing to take calculated risks. This trait is ranked highly as it is necessary for stepping out of comfort zones and seizing opportunities​.
  
  
• Decisiveness is knowing when to lock in a specific path and keep moving forward - a particularly beneficial trait in today's age of big data and mass distraction.
  
  
• Innovation: If curiosity, creativity, and risk-tolerance had a baby, it would be called Innovation. Innovation is the force that can enable the little guy to slay their multibillion dollar competitors - and it’s also a force that can keep the big guys at the top. A deep understanding of shopper behaviour and particular market segments will be a valuable aid to the would-be innovator.
  
  
• Continuous Learning and Improvement: Entrepreneurs must constantly update their knowledge and skills to stay competitive. This trait is vital for adapting to new technologies and market trends.
  
  
• Long-Term Vision and Commitment: Nearly essential for achieving enduring success, this trait encompasses more than just goal-setting. It involves a sustained commitment and persistent effort towards clear, long-range objectives. Entrepreneurs adept at weaving their short term goals into a much bigger vision, generally do well.
  
  
• Team Building and Networking: Success often hinges on the ability to build and leverage a strong team and broader network. Entrepreneurs must be adept at creating and nurturing relationships that can support and grow their business.

The Digital Era: A New Frontier

The Digital Era has reshaped what it takes to obtain this illustrious label called "rich", radically improving the odds for just about anyone who is determined  - and has a laptop and internet connection.  

Forbes' reports on self-made millionaires and billionaires often feature individuals who have leveraged technology and digital platforms to build their fortunes. And for every Jeff Bezos, Elon Musk, or Mark Zuckerberg, often referenced in these reports, there are tens of thousands of Millionaires you haven't even heard of - and they all made their fortunes thanks to (or largely thanks to) digital technologies

This digital and hyper-connected era offers unprecedented opportunities for those who are willing to jump on and ride this technological and social tsunami. 

Conclusion

The correlation between being 'rich' and entrepreneurship is clear. The journey of starting a business is fraught with challenges, but it remains one of the most viable paths to significant wealth. You don’t have to be superhuman to get rich, but it does require strengthening traits like adaptation, risk-taking, innovation, resilience, and perseverance. And if all goes well, the rewards can be absolutely life-changing, not just for the individual entrepreneur, but for society as a whole.

With a willingness to learn, the courage to take that first step, and the perseverance to carry-on, starting a business is probably more within your reach than you think.

Are you ready to launch a business or grow an existing one?

Book a free strategy call and we'll provide free advice on how to achieve maximum results with your new venture.

With a willingness to learn, 

the courage to take that first step, 

and the perseverance to keep moving, 

starting a business is probably more within your reach than you think.