The #2 lie about millionaires.
Vilfredo Federico Damaso Pareto was born in Italy in 1848. Rumor has it that one day he noticed that a few of the pea plants in his garden generated most of the healthy pea pods.
About 20/80.
He wondered if that principle existed anywhere else. He discovered that most of the land in Italy (around 80%) was owned by a small number of people (around 20%).
And 80/20 is fractal. Which means that 20% of 20 (4%) and 80% of 80 (64%) will apply. And 20% of 4 (.8%) and 80% of 64 (51%).
In the U.S., 5% of the population own 62% of the wealth; 1% of the population own around 35% of the wealth.
Pretty close.
80/20 does not explain WHY it exists; simple THAT it exists.
One thing we know, millionaires think and do things differently.
Yet, that not what we have been taught.
You’ve heard it said before (not by someone who’s actually affluent themselves) that the affluent are just like everyone else, “They put their pants on one leg at a time.”
Lie #2: “The affluent are just like everyone else.”
Truth: Well, it may be true about how they get dressed, but it’s not true in just about every other way.
They aren’t like everyone else.
When I entered the financial services industry in 1980, I was taught that the Social Security statistics showed that at age 65, 1 out of 100 would be affluent; 4 are independent, doing OK; 32 are dead; and the rest are dead broke!
They are the elite 1%!
Business success is similar: Something like 80 percent fail in the first 5 years; then another 90 percent in the next 5 years. Ultimately, something like 17 out of 18 fail!
So, they don’t “put their pants on like everyone else.”
Therefore, they must be treated differently.
They want offerings that are unique… customized… and distinctive!