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I think overall it is rather highly correlated, yes. In fact, I'd submit that the number one predictor of having a high net worth would be to also have (or have
by run4yourlives 13y ago
I think overall it is rather highly correlated, yes. In fact, I'd submit that the number one predictor of having a high net worth would be to also have (or have had) a high income.
The easiest formula to build wealth is to have positive result to the income -expenses equation. If you accept that, income and expenses should be the two strongest correlations to large amounts of wealth overall.
Considering expenses need to be something north of zero in the best case and income has no upper bound, I'd give income the edge over the two in terms of overall strongest factor.
- enoch_r 13y agoYou're looking at one year of wealth creation here, and dancing around the obvious third variable: time. Old people are much more wealthy than young people[1] despite having comparable or lower incomes. [1] http://www.pewsocialtrends.org/2011/11/07/the-rising-age-gap-in-economic-well-being/ http://www.pewsocialtrends.org/2011/11/07/the-rising-age-gap...
- run4yourlives 13y agoSure, they are. I'm not sure how that translates into an argument either for or against high income correlating to high wealth. We're all using the same variables for time.