Correlation of IQ with Income and Wealth
Correlation of IQ with Income and Wealth
It is a general expectation that IQ measures the financial wellbeing of the person. It is a perception that the higher the IQ, the higher the chances of an individual to generate more income.
The important point is to understand the difference between income and wealth. Income is the money that you get in the form of a paycheck. On the other hand, wealth includes a lot of other assets as well such as bonds and stocks, property, various investments, and retirement reserves, etc.
The main difference between wealth and income is that you can inherit the wealth directly from your ancestors but income cannot be inherited directly. You will have to work in order to generate income for yourself.
A large number of research studies have been conducted to analyze the relationship between IQ with income and wealth. Such studies aimed to identify whether the people who have high IQ scores are capable to generate more income for themselves or are such people have more wealth as compared to those who have https://iq-global-test.com/.
IQ and Wealth
A nationwide study has found that people having low intelligence levels were as wealthy as the ones having high intelligence levels if they are provided with the same circumstances. Even the trends worldwide show that some of the highly intelligent people have faced extreme financial difficulties at some point in their lives.
Jay Zagorsky (The author of the study) claimed that people do not become rich just because they are intelligent and smart.
Intelligence directly does not affect wealth. If a person is extremely smart and intelligent it does not mean he or she will never face any financial difficulty in life.
Research has negated the general expectation that a high IQ level ensures greater wealth. A large number of research studies have found out that intelligence is not a predictor of financial well-being. Even if smart people can handle the situations well it still does not ensure that they will have more wealth generation.
Another research study has also found that people having high IQ scores end up with the same net worth as compared to those who have low IQ scores. When various lifestyle factors are taken into account, both these groups of people had no major difference. The study confirmed that if you want to be rich you do not have to be very smart.
Other factors associated with wealth
Several research studies have also highlighted that those who are wealthy have more spending as compared to those who do not possess much wealth. According to research, wealthy people are also more likely to spend more money beyond their credit card limit. They also spend beyond their capacity as compared to those who have moderate or average intelligence levels.
IQ and Income
Few research studies have found that those having high IQ scores perform well in their jobs. An increase in IQ levels translates into an increase in job performance. Few studies have claimed that IQ has a substantial effect on income. As the intelligence increases the job performance which further increases the amount of income.
A research study conducted by Zagorsky claimed that a person having an IQ score above 130 might end up earning around $12000 more per year as compared to those who have an average IQ score of 100.
Zagorsky initially found a positive correlation between IQ and net worth. But when he controlled a few factors during his research investigation such as divorce, inheritance, types of work and jobs, the educational background he found no link between IQ and net worth.
Even those who had an average IQ score of 105 had a net worth higher as compared to those who were smarter with scores above 110.
Other Cultural and Social factors
Zagorsky found that those who had been divorced had $9600 less wealth as compared to those who were not divorced. He even found that smokers had $11,000 reduction in their net wealth. Zagorsky highlighted that these external factors, other than IQ, have a great impact on wealth.
Richard Wolff says that smart people often have a high level of expectations regarding what they deserve. They claim what they are entitled to. For instance, the notion like “that is what I get for working hard”.
Such people continuously want to improve their living standards and they want their buying power to increase over time.
Conclusion
There is a massive difference between income and wealth. Both these factors also have different relations with IQ. Research has claimed that a higher IQ does not ensure higher wealth. If you are smart that does not mean that you will never face any financial difficulty in your entire life.
If you look at the life trends of wealthy people around the world, you will see they were very smart to set up huge business ventures but they have faced a large number of financial downfalls (Maybe more than an average person).
Other factors such as divorce, inheritance, types of work and jobs, educational background, etc. play their role in an increase or decrease of net worth.
Income has a moderate correlation with IQ. It is seen that smart people perform their jobs well. Better job performance increases their chances of promotion which further benefits them to generate more income for themselves.
But it is not feasible to give all the credit to a single factor of intelligence. It is not the single factor explaining the wealth and net worth of an individual. Those who have low intelligence levels should not feel that they are less in any regard. They should not believe that they are handicapped. Their capability to generate money depends on a large number of factors other than intelligence.
Those who have high IQ scores do not have any additional advantage over those who have average IQ scores. Professors are usually the smartest people around but they are not the wealthiest people around. If you look at the lifestyle of professors around you will find out that they are intelligent but they are not much wealthy (Most of them).