Jamie's Blog

Wednesday, April 25, 2007

Being smart has nothing to do with being rich

There is a study that was just concluded that proves that being smart has a lot less to do with being rich than most people think. The study was conducted by a researcher, Jay Zagorsky, at Ohio State University. His study showed that having a higher IQ meant you were more likely to have a higher income, but also were more likely to be in debt and have fewer investments and savings. So more money coming in, but a higher percentage of that money wasted. People with lower IQ's were generally in a much better position financially than those with higher IQ's. They had more savings and investments, and considerably lower debt. Despite having much lower incomes.
This is another one of those studies, that if you have known a lot of both smart and dumb people is not likely to surprise you. Some of the smartest people, academically, that I knew in college were also the dumbest people when it came to common sense. A lot of good financial habits, seem to be just plain common sense. Don't buy luxury items on credit. Don't buy things on a whim. Save money. All basic stuff, but it seems like many people don't get it. Just because you make more money, doesn't mean you should spend it.

Check out the articles at:
NewScientist: Smarter people are no better off
Scientific American: A Wealth of Smarts Does Not Guarantee Actual Wealth

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