You don’t have to be smart to be rich

One money mindset that I come across is the belief that “I’m not smart enough to do that”. It is a major limiting belief that has wide ranging negative consequences for wealth creation.

If you relate to that belief then here’s some good news for you. Research on over 7,000 Americans has demonstrated that there is no correlation between your level of intelligence (as measured by IQ) and the level of your wealth. Read more about the research here.

You are smart enough to understand all the major elements of money management and to use that knowledge to create enough wealth for a very comfortable life.

But are you perhaps too smart? The research study notes that high intelligence does not necessarily mean greater wealth. To quote the study author, Jay Zagorsky: “Professors tend to be very smart people; but if you look at university parking lots, you don’t see a lot of Rolls Royces, Porsches or other very expensive cars. Instead you see a lot of old, low-value vehicles.”

Wealth creation takes wisdom – applying good judgement to the knowledge that you do have to create positive action.

You have what it takes to get rich. But resist the temptation to get too smart by complicating things to the point of ineffective action. The “basic”, simple and easy strategies often provide a much bigger benefit than any of the sexier, more complex and more time consuming strategies.

Author: Matt Hern

Certified Financial Planner professional, Matt Hern has three times been awarded as one of Australia's Top 50 Financial Planners by The Australian Financial Review Smart Investor. He is passionate about guiding you on the right financial choices to achieve what you really want. Matt Hern is an Authorised Representative of Charter Financial Planning Limited AFSL 234665. All information is general advice only.