What Does It Take to Be in the 1%?

Money is something that is on everyone’s mind, but it takes a special type of motivation to want to become part of the one percent, but what exactly does that entail? According to mymoneywizard.com, the one percent is a group of wealthy individuals with wealth that far exceeds anything that most common people could ever hope to lay eyes upon let alone achieve. People are constantly talking about how there’s a massive difference of income between the ultra-wealthy and the poor, but how big is that difference?

Defining Ultra-Wealthy

There are currently over 200,000 people in the world that count as ultra-wealthy. This means that they have at least $30 million in assets across their businesses and personal items. These people make up roughly 0.0004% of the world’s adult population, but despite being such a small group of people they make up around 15% of the world’s entire wealth. The gap doesn’t stop there either. The richest 50 people in the world have a combined total of almost $2 trillion which means they control roughly 50% of the world’s wealth. That’s less than 0.000001% of the world’s population in terms of people, yet they control 50% of the world’s wealth. The remaining 99.999999% of the world controls the remaining 50%. Talk about imbalanced!

And let’s not forget about the things these ultra-wealthy individuals are capable of. Many of them love to buy fancy cars, live in luxury mansions and have a range of expensive hobbies such as sailing yachts and shopping at the most expensive stores. And we’re not talking about having just a single car, a dozen cars or even a handful of personal boats. We’re not even talking about just owning a single mansion either, or even a dozen houses.

The ultra-wealthy indulge in things that are beyond comprehension for most common people. They have dozens of mansions, they own islands, they own boats and ships in several oceans, they have private jets fly them from location to location and they probably own their very own line of clothing, charity or cosmetic brand. Just take a look at this list of millionaires who own islands by telegraph.co.uk. They could bathe in the world’s most expensive wines if they wanted to, and they could probably donate a new car to everyone they know and still have more money than they know what to do with. This is what it means to be ultra-wealthy, to have more money than you can even handle.

You Don’t Get Rich Quick

Unless being born into a wealthy family counts as getting rich quick, there’s no easy road to becoming part of the one percent of the world, let alone the 0.000001% of the world. Inheritance does play a large part in many people’s wealth, but research has shown that roughly 18% of the ultra-wealthy are rich purely because of inheritance. Over 60% are self-made businessmen and entrepreneurs such as Bill Gates, the American businessman who co-founded Microsoft, and the rest is a combination of inheritance plus their own methods.

What this tells us is that you don’t have to be born into a wealthy family to succeed in business. In fact, there are many factors that determine how successful you be, and it’s not always about making money. For instance, Amazon established itself as an online retailing juggernaut through sheer profit investment. Every penny that Amazon was invested back into the business instead of being handed out in bonuses to the employees. This gave Amazon the funds they needed to expand as quickly as they could to secure themselves as the online retailer that sold almost everything in such a short timespan. Because of this, investors poured money into the business and they are sitting on very expensive shares now thanks to Amazon’s tenacity and global dominance.

There are far too many get rich quick schemes on the internet and all of them are completely bogus, such as these ones on buzzfeed.com. There is no way to get rich quick unless you win the lottery, and even then that temporary wealth is completely useless if you don’t understand how to re-invest that wealth and create a sustainable lifestyle. This is what sets apart the lucky and the tenacious, the ability to not only create wealth but to continue creating wealth so that their entire family can live comfortably for several generations down the line.

You Have to Own a Business

It doesn’t make sense to be ultra-wealthy and not own a business. After all, how can you have wealth if you aren’t making money? Even if you win the lottery and you’re suddenly sitting on millions, that might signify temporary wealth but unless you know how to continue making money, that money isn’t going to last as long as you might think. As mentioned before, the key word is sustainability. You can buy fancy cars and an expensive house, but how are you going to sustain living that kind of lifestyle if you aren’t getting income that can support it? You don’t buy a house if you work a part time job because you simply can’t afford it, and you wouldn’t buy a helicopter if you couldn’t pay for repairs, fuel and learning how to pilot it in addition to getting all the required licenses and a helipad.

If your business is making a lot of money, then you’re allowed to make luxury purchases without feeling bad because you can simply make that money back. After paying your taxes and bills, you can buy whatever you like because you have the excess funds to do so. If you aren’t making money, then you aren’t sustaining that lifestyle and you will eventually go broke. This is why everyone who is part of that one percent has some kind of business. Be they a singer, an artist or a software designer, they have unimaginable wealth because they have a thriving business that is making them money.

Simply owning a business doesn’t count either. Owning a bakery isn’t going to make you rich unless you own a massive chain of bakeries across the world. Your business needs to be relied on by many people around the world so that you are easily recognised and indispensable to people. You have to provide them with a product or service that they can’t possibly live without and you have to integrate yourself into modern society as deeply as you can. Take Google for example. We use Android phones, we use Google search, we use Google Mail, we use Google Fiber and almost everyone uses Google Maps. With so many everyday essentials under a single brand, it’s no wonder that Google has overtaken Apple as the planet’s wealthiest business.

If you’re interested in businesses that can make you extreme amounts of wealth, you can get advice from oilandenergyinvestor.com. There are many articles on the internet that spout nonsense such as getting rich from doing silly jobs or working at home freelancing and although they can make you a comfortable living, they are far from the types of jobs or careers that the ultra-wealthy have. The rich have businesses in fields like oil and energy, global retailing, fashion and technology. Whatever the business is, you can be sure that these rich individuals have a tight hold on these industries and that they are a globally recognised brand that can’t be taken down easily. They completely dominate their markets and it’s incredibly tough to challenge their position. They expand quickly, they know how to target their demographic, and they have the funds to promote their products better than anyone else.

The Will to Succeed

People often confuse having willpower with passion. Passion ultimately doesn’t get you anywhere. You can be passionate about what you love doing and it might give you an upper hand on someone that doesn’t have passion, but that doesn’t exactly mean you can make money from it. Passion helps, but willpower will be the driving force behind your ability to be successful and make it into the one percent of the world’s population.

Something about entrepreneurs that people don’t quite understand is that they have failed many times before. Entrepreneurs such as Richard Branson of Virgin failed many times when they were younger, and it’s from those failures that they are able to help themselves. People need to fail in order to understand what they did wrong. Of course, it’s arguable that you can read advice such as this article or ask a successful entrepreneur for tips and tricks that can help you succeed, but there’s another part to this that many don’t realise; experience.

Failing over and over again gives you experience, but it also strengthens your resolve and your will to succeed. Your first business idea might be something that you are truly passionate about, but that doesn’t mean it’s an idea that will work. You might have an idea that the world isn’t ready for, or you might have an idea cooking in your mind that isn’t ready to be taken out of the oven yet. You might also have personal reasons for wanting to obtain a vast amount of wealth, but that doesn’t mean those reasons are sound and valid. You need to spend a lot of time reflecting on your actions and learning about yourself in order to become ultra-wealthy, and it takes a lot of willpower in order to achieve becoming part of that illustrious one percent of the world.

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