Here's a very interesting piece from Yahoo that gives some insights into how intelligence is related to wealth and income. We'll start with the middle of the piece where it notes that past studies have shown a relationship between intelligence and income. The details:
The study confirmed previous research which has shown that smarter people tend to earn more money, but pointed out there is a difference between high pay and overall wealth.
"The average income difference between a person with an IQ score in the normal range (100) and someone in the top two percent of society (130) is currently between 6,000 and 18,500 dollars per year," it said.
Ok, so if you're pretty smart, chances are you make more than others who aren't as gifted. But as we all know, it's not what you make, it's what you spend. Here at Free Money Finance I've seen tons of examples of people making good incomes who aren't making any progress on their net worth. If you want proof of this, check out Another Example that Earning a Boatload of Money Won't Make You Wealthy, How to Overspend on a Six-Digit Income and How to Go Broke on $200,000 a Year.
Unfortunately, making a big income and spending a big amount of it (or more) seems to be the rule more than the exception. While intelligence is linked to income, it is NOT linked to wealth. The details:
Intelligence has nothing to do with wealth, according to a US study published Tuesday which found that people with below average smarts were just as wealthy as those with higher IQ scores.
"Your IQ has really no relationship to your wealth. And being very smart does not protect you from getting into financial difficulty," Zagorsky said.
So the smart people out there are making a good living and yet are no better at accumulating wealth than anyone else. Maybe intelligence is linked to "spending more," huh? ;-)
Which leads me to another question: If intelligence is not linked to wealth, what is? What makes people wealthy? Discipline? Knowledge (different than intelligence)? Luck?
Let me know your thoughts in the comments below.