What Can We Learn from “The 1%?”

January 06, 2012

It’s impossible to turn on a news channel and not hear about the 99% vs. the 1%. Here’s what I think: Supporters on both sides have points that the other side could learn from. Since this blog is about trying to give you some thoughts about how to improve your financial life, and once in a while some stories that might be inspiring, I’ll talk about what we can all learn from the top tier of America’s wealthy (aka “The 1%”). For a large part of my career I gave financial advice to people who are in that group, and while they all made money in different ways, there were many common characteristics. Here are my observations and a few things I learned that have helped shape my career.

One of the things I noticed immediately is that very wealthy people don’t view themselves as very wealthy. They can rattle off the names of 20 people they know who are doing better than they are. They aren’t resting on their laurels and thinking that they’ve got it made; they are always striving to improve their situation. I have noticed a strong work ethic combined with a competitive nature that we could all emulate if we’re looking to make our way into the 1%, or 10% or whatever % our goals take us.

A part of that competitive nature is also the thought that if you slow down, you’ll be passed by someone else. I have seen this in my career where someone who was at the peak of his career dialed back his effort substantially because he felt like he had reached all of his goals. He lost his “edge,” and the people around him began to drastically outwork him and ended up resenting him. Within a short period of time he was no longer working with us! There’s an element of always being aware that your competitors are gaining ground on you, maybe even the fear of not measuring up, that seems to be prevalent with the successful people I’ve met.

Here’s my take away from that characteristic. No matter what your job is, there are people out there who would love to replace you, so you should continue to give the maximum effort that you can. If you give your best, that’s the best you can do. (Sounds like words from a little league baseball coach, huh?) But if your effort isn’t there, you will know it and so will those around you. Your effort level is the thing you control. In a world where many things are not within our ability to influence (European debt levels, unemployment, stock market returns, gas prices, etc.), we do have the ability to control one thing that is crucial to improving our lives.

Maybe part of that “someone is gaining on you” thinking is what drives many of these people to value education so highly. Not just formal education, but a constant improvement in skills and knowledge. While most of the “1%’ers” that I met were college graduates, not all of them were. But, they were all parts of groups that talked about how to improve skills (CEO groups, life coaching, and groups of similar minded people who worked on helping each other improve), and they were very aware of the deficiencies in their professional and personal lives. If we were all as self-aware as this group, maybe it could help us. (I know being aware of the level of the trash can and the laundry bin could help me improve in my personal life.)

Another common characteristic I saw is that they not only valued, but relied on, the help of others. I’m a big sports fan and in most sports it takes many people working together to win consistently. The wealthiest people I have met usually have a team assembled. They not only have the team, but they listen to the team’s input, value their opinions, and can often change course based on opinions other than their own. And when they get into a situation that requires skills or talent that they don’t have, they realize that they need help and then they actually ask for it!

What can we learn? We are not islands. There are times when we need the help of others. If we can put aside our desire to be totally self sufficient, we can find people in our lives to help us with whatever obstacle is keeping us from our goals. If it’s a tax issue, hiring an accountant is a great addition to your team. If you’re struggling with debt, talking with a financial counselor can be helpful. If you aren’t feeling well, have a primary physician on your team. (You’d be surprised how many adults don’t have a regular doctor.) Life is a team sport! Make a list of the people on your team and then rely on them when you need them.

Another thing that really stands out, whether the 1% person was a professional athlete, an entrepreneur who built a business from scratch, an executive who made his fortune in the corporate world, or any other way that they became wealthy, they all shared an exuberance for life, a passion for what they do, an attitude that says “whatever the problem is, I’ll find a solution.” When we are faced with obstacles, do we have that same attitude? Do we have a passion for being excellent?

There are so many things that we can all learn from the most successful people in our country. I hope that my personal observations allow you to pick a few of these things and make them a priority in your life for the next 12 months. I can’t guarantee anything, but I feel very confident that if you focus on 2-3 of these traits and implement them in your daily life, this time next year your financial situation will be better than it is today.