From Europe’s economic debt woes, to the US’s ever widening gap between the haves and the have-nots best symbolized by the Occupy Wall Street movement, there are clear signs that the developed world is struggling to create an economic system that reaches balance and prosperity.  But are the principles of capitalism to blame, or are there some other factors at play here?

Listen to the debaters at Davos as they shed some light into this fascinating topic that is critical to the success of people across the globe:

Top World Minds Debate Capitalism in Davos is a post from: Worldwide Success

But what you may be wondering is how to become one of them.  We have numerous articles on the site that talk about how to become financially successful, and you should look around to find out the secrets of the wealthy.  And as you already know or will find out, education has a lot do to with it.

That being the case, the obvious question for those of you that are still young enough to be in a position to decide what to study, might be  “what should I major in if I want to become a one percenter?”

Well, here is some interesting data that you may want to consider.  The New York Times published an article called What the Top 1% Earners Majored In.  It is easy to guess that many pre-Med majors have become one percenters, but the rest of the data may surprise you. 

Consider this just a data point, and not something to obsess over.  At the end of the day, it is much more important that you study a subject that you enjoy and find a line of work that you can be good at and happy with.

What to Study to Get to the Top 1% is a post from: Worldwide Success

Here are some key take aways from the article:

•  40% of the affluent say their biggest fear is they will do all the right things today and still not have enough for tomorrow.
•  9% say the fear they have under saved and won’t recover
•  25%  say they are not confident they will have saved enough for retirement
• 42% of affluent women say they need to cut back their spending significantly in order to save for retirement
• 12%  feel they will have to work until 80 years of age

The survey group was split evenly between Americans with  investable assets between $100,000 and $250,000 and those with more than $250,000.

Considering what the experts are saying about the amount of investable assets required to retire comfortably, it is not surprising to see these kinds of answers.  Remember that even $1 million may not be enough for the average American family to retire on.  If the median affluent men and women only have $400,000 and $250,000 respectively saved for retirement, they indeed have a long way to go before they hit the magic $1 million to $3 million suggested by financial advisers as an amount sufficient for the average American family to retire on.

That being the case, what are the chances the middle class will ever retire?

Even the Rich Don’t Have Enough to Retire is a post from: Worldwide Success

Most importantly, if you really want to be part of the one percenters there are some really interesting statistics that you should pay attention to.

According to an article by Forbes.com, titled How to Get to the Top 1%?  Earn a Graduate Degree, about 49% of the top 1% have earned postgraduate degrees, compared to just 16% of those in the bottom 99%.  The article defines the one percenters as the households earning $500,000 per year or more.

This is one more data point that makes the case for higher education as the best way to increase your chances of financial success.  But there is more.  According to the article 49% of those earning $250,000 to $499,999 and 42% of those earning $150,000 to $249,000 also hold graduate degrees.  Only 27% of the richest 1% have less than a college degree, compared to 69% of the general population. 

Although there is no guarantee that an advanced degree will lead to higher earnings, and despite of the very high cost of obtaining such degrees, the data points to the fact that a higher education is still your best shot at trying to at a minimum make a decent living, and potentially make the kind of money that would put you in the top one percenters club.

But then again, if you don’t think you are up for shouldering the financial burden of the 99 percenters, and being criticized for being greedy and uncaring, perhaps you are better off just skipping college and camping out on public properties.

Increase Your Chances to Get to the Top 1% is a post from: Worldwide Success

Recently, Kiplinger published a Rags to Riches Millionaires story highlighting 5 people who turned their misfortunes in into millions.  You can read the article yourself, but let me just point out some of the advice from these folks who have lived through great turn-arounds in their lives:

Catherine Hughes, Founder and chairperson, Radio One:  “Sometimes the ones who love you the most will give you the worst business advice.”

Bert Jacobs, Co-Founder and CEO, Life is Good: “Try to shoot for a timeless business.”

Ali Brown, Entrepreneur, business consultant and publisher: “It’s important you seek out other business owners for information, advice, support and resources.”

Jill Blashack Strahan, Founder and CEO, Tastefully Simple: “Having goals is absolutely critical.”

Farrah Gray, Founder and CEO, Farrah Gray Publishing: “Keep your business small . . . niche yourself.”

Jesse Conners, CEO and Founder, PerppermintPark.com: “There is constantly some fire that you have to put out . . . Don’t let it discourage you.”

These are all great advice from real entrepreneurs who were once at the bottom.  But notice how many of them are giving back to the community.  That is important because the people who are struggling need help from those who have made it.  I understand the frustrations of the people that are struggling and their need to express their anger in a public way.  I just don’t think blaming it on successful people will get them very far.  Instead they should try to emulate all the right things that successful people do or have done to get where they are.  Listening carefully to the folks listed here is a great start.

Meet the Rags to Riches Millionaires is a post from: Worldwide Success

Here is what I have found in my search for the one percenters:

According to The Washington Post’s Wonkblog

-          They have a minimum income of $516,633 per year

-          Their average income is $1,530,773

-          Their average wealth was almost $14 million in 2009

According to CNN Money:

-          In 2009 it took $343,927 in AGI to join the 1 percenters based on data from the IRS

-          On average they made $960,000 per year

-          Many of them are financial professionals, executives, doctors and lawyers

But it is Dave Gilson from Mother Jones that gives us the best perspective on the 1 percenters with these awesome charts:

Their Occupations:

What They Make:

What They Own:

Regardless of who they really are, the one percenters have been getting a lot of heat lately.  But the truth is most people would like to be just like them.  As Issac Bailey of the Myrtle Beach Sun confessed: “ like the majority of those in the 99 percent, I’d love to become a member of the 1 percent.”

If like most 99 percenters you also want to become a one percenter you have come to the right place. We have a ton of  material on this site with great tips on how to get there.

Searching for the One Percenters is a post from: Worldwide Success

I ran across the following differences between the rich and the poor which may come across as elitist to some, but can also be a huge eye opener to others:

-          The rich believe they can shape their destiny.  The poor believe their destiny is set for them.

-          The rich are committed to being rich.  The poor would like to be rich.

-          The rich play to win.  The poor play not to lose.

-          The rich use interest in their favor.  The poor use interest against them by buying what they want now.

-          The rich admire the rich and mold themselves after them.  The poor hate the rich and think they are crooks.

-          The rich reach out to successful people.  The poor prefer friends that, like themselves, have financial difficulties.

-          The rich ask, “how can I have this?”  The poor say “I can’t have this”.

-          The rich study investments and make plans.  The poor say they don’t have time for these things.

-          The rich pay themselves first.  The poor pay others first.

-          The rich like to be paid for results achieved.  The poor like to be paid for time spent.

-          The rich, when faced with adversity ask “how can I take advantage of this?”  The poor, when faced with adversity, feel sorry for themselves.

-          The rich focus on solutions.  The poor focus on the problem.

-          The rich put their money to work hard for them.  The poor work hard for their money.

-          The rich act despite of fear.  The poor are paralyzed by fear.

-          The rich think big.  The poor think small.

-          The rich have a plan for financial independence.  The poor think that the government should pay for their retirement.

-          The rich are always trying to learn more.  The poor think they already know everything.

-          The rich say: “what lesson can I learn from this mistake?”  The poor say: “I knew this was never going to work”.

-          The rich keep getting richer.  The poor keep getting poorer.

Wow!  Do you get it?  If you do, either you are already rich, or you are on your way there.  If you don’t, you may not see it now, but once you do you will also be rich.

The Difference Between The Rich and The Poor is a post from: Worldwide Success

So, when I saw the story of Trisha Waldron, I had to share it with you.  At the age of 28, Trisha was barely surviving on food stamps.  With no college degree, no work experience, this single mom did not know what to do with her life.  Until one afternoon she heard a teacher say to a student: “You can create your own life”.  Trisha took that advice to heart, and at that moment her life changed forever. 

It never ceases me to amaze how the mind is so powerful, and how a few simple words can change your life.  To learn more about Trisha’s inspiring story read the article entitled Welfare mom creates million dollar biz: how she did it.

At the end of the article Trisha leaves us with some very powerful advices that are applicable to everyone’s success journey.  Here are my 3 favorite ones:

• “Your responsibility is to be clear about your vision”  – in other words, create a vision for the life you want and don’t let others define that vision for you.
• “Surround yourself with people who support you” – seek those people that believe in you, and avoid those people who bring negativity into your life.
• “Realize that it will be hard, and accept that” – don’t expect an easy ride, and accept that success is a journey down a road full of obstacles.

From Welfare to Million Dollar Business is a post from: Worldwide Success

Contained in this question are decisions about your future: Your beliefs, relationships, money, health and career. Most importantly it determines your ability to make sense of your life and act accordingly. The business that is You contain so much more than just your Self. You are a member of an ensemble of key people and forces beneath, within and beyond you: Family, friends, colleagues, economics and outrageous fortune. To grow you must look up, down and around to harness and enlist these people and communities that move us forward. Innovation is not about heroic deeds of derring-do. “Creativizing” your life simply means adding creativity to ordinary things to make them extraordinary.

Practice Prismatic Thinking

There is no data on the future where innovation happens – tensions in the Middle East, the value of the dollar and scary diseases we haven’t named yet. In fact, collecting excessive data on the future is a form of resistance because it stops you from acting. Innovation has a shelf life like milk – over time it goes sour. The fabulous gizmo that you bought last Christmas is this year’s trash. So how do you find the unknowable destination? With a map to foresee (4C) the hot spots where our opportunities will emerge and the look into the blind spots where our challenges hide.

How you innovate is what you innovate. There are four types of innovation (the 4Cs) that largely determine how you will grow. These types are not harmonious, and although you can recognize them and ride them, you can’t control them. The truth is that innovation requires constructive conflict. No, not the kind of debilitating hate-speak we hear from politicians and late night partisans but rather the kind that occurs when people vigorously disagree but synthesize this positive tension and creative energy into productive hybrids – innovation.

These two competing types of innovation largely determine your level of ambition and your tolerance of risk: How much?

• CREATE: This type of innovation is focused on DOING NEW THINGS and includes:
o Creativity: Aesthetic vision and artistic expression
o Discovery: Psychological and spiritual exploration

• CONTROL: This type of innovation is focused on DOING THINGS RIGHT and includes:
o Security: Safety and savings
o Productivity: Accomplishment and advancement

Consider how your highly efficient daily grind has crowded out your creative soak time for playing the guitar or mediation.

These next two competing types govern your speed of innovation and your sustainability: How fast?

• COMPETE: This type of innovation is focused on DOING THINGS NOW and includes:
o Vitality: Physical and emotional health
o Prosperity: Financial well being

• COLLABORATE: This type of innovation is focused on DOING THINGS THAT LAST and includes:
o Capability: Learning and intellectual development
o Community: Connection with family and friends

This is where our work-life struggles occur. Do you go to the gym to keep healthy or go pick up the kids early from daycare to stay happy?

Of course, in the right measure, situation and sequence you must engage all four types of innovation, but not all at once, and certainly not everywhere. You need to practice prismatic thinking – looking for hot spots and blind spots in each of the four types:

 What’s working?
 What’s not?
 What should I start?
 What should I stop?
 What should I hold?

By routinely rebalancing your portfolio life you will continue to grow through shrewd choices about where you invest your time, resources and precious energy. Remember that you cannot grow until you first create the capacity for growth. You can have it all, just not at the same time or way. Innovation requires deviation.

Creativizing Your Life is a post from: Worldwide Success

Although it is impossible to pinpoint with any degree of certainty the bottom of any market, historical information can be very helpful in giving you a good feel for where prices have been and are likely to go.  When it comes to real estate, I found some great charts that give you a great historical perspective on US house prices, both nominal, as well as inflation-adjusted.   On the same page there are also charts that show how US house prices compare to owner-equivalent rent, which is probably one of the best predictors of what the true value of real estate should be.  Check out the charts here:

http://www.jparsons.net/housingbubble/

By looking at the trend lines in these charts you will notice that current prices are very close to where they should be compared to historical norms.

Will prices go any lower?  Potentially.  But given the historically low levels of interest rates and the fact that we are now in the area of historical fair value, this could be a great opportunity to buy real estate.  You will never be able to time the bottom perfectly, and if your time horizon is 5 years or more, buying at the absolute bottom is not important.

But given that prices are starting to show improvements in some areas and that inflationary pressure may drive interest rates higher, if you wait too long you may miss out on the best real estate opportunity we have seen in a very long time.  For additional perspectives on this discussion, see the article Is Now a Good Time to Buy a House?

Real Estate Reaches Historical Fair Value is a post from: Worldwide Success