As a student, part of my mission in college is to meet as many students, professors, alumni, staff, etc. as possible and be immersed in everything. I believe thereâs no better place to have this mindset than in NYC. NYU is one of the most diverse schools with the most unique campuses and it would be a shame to do remote school for all four years.
You can get by doing Zoom school somewhere else but not here. I hear that is one of college graduatesâ ultimate regrets, including mine from HS! Ironically they wished they couldâve focused less on school and more on the free events, clubs, opportunities, and people because thatâs where the real-world is. Nothing in life is free. It all comes with the cost of college or else you are on your own.
Since freshman year, the pandemic halted a year and a half from campus life so at this point in my college career, Iâm already more than halfway done and have extreme pent-up demand. This semester was the first time I was back since February 2020 in a classroom and I was eager to savor and take advantage of everything before itâs gone! Sadly, we donât appreciate things until they are gone.
I know Iâm never going to get a chance to study abroad for 6 months or meet as many people who are dedicated to learning afterwards so might as well take the chance now. Thatâs what college is all about! The people, experiences, playgrounds, chance to experiment, fail, somehow âfind yourselfâ, and grow up through discovering the world is right here right now. Itâs a good thing thereâs a break between HS and the real world: college. Students need it, myself included. Otherwise I probably wouldâve skipped school entirely. Iâm not made to sit in the classroom all day and memorize information that goes in one ear out the other. Iâm a real-world person.
The truth is, you can learn anything anywhere. The curriculum is less or more the same anywhere. Youngsters are obsessed with brand equity. They chase titles, logos, brands but once you discover whatâs there, what differentiates these brands (colleges) is the energy, networks, experiences, and the place. The people, professors, experiences, and diverse melting pot of NYC is what makes it special.
Grades vs Grounds
Although studying is important, I believe networking is more crucial and will help you rise up the income ladder 10x faster. Networks are an insurance policy money cannot buy! No matter how smart you are, without people skills you are toast! Thereâs not a single CEO who isnât friendly. They donât have to have an IVY league degree or a degree at all. They just have to get along with people and be able to convince others they are the best fit for the job.
Once you realize how crucial soft skills are, considered the new hidden hard skills, that will help you get a foot in the door easier and faster. But as with the markets, thereâs no guarantee but it has seemed to work for everyone in the top 1% and above. Sadly grades will only get you so far since what you put in is what you get out. Even if you went to an Ivy league because your daddy paid for his name on the plaque of a building, doesnât guarantee you will join a select number of the Ivy league alumni who feel âsuccessfulâ in their post-graduate lives.
Never be too content or get used to anything, especially if you didnât rightfully deserve it. Depend on yourself. Thatâs it. Not even others. Just help them. As my father used to say, âwhat got you here wonât get you there.â
If you put in the work, the work will work for you but even that doesnât always work. Working smarter not harder really seals the deal and by keeping that in mind, you are more likely to get ahead and if you truly desire, will possibly get a better chance into entering the top 1%.
We all know people who work harder than us that still feel stuck in life.
This is either due to:
A) Not utilizing or keeping in contact with industry professionals
B) Donât understand the power of networks
C) Donât reach out for help or to help in order to GET help!
D) Too reliant on their degree
E) Not investing in themseleves enough
F) Impatient and make excuses
Not that itâs a noble dream to get into the top 1%, but it does certainly alleviate financial stress with a secure buffer and roof over your head. But if and only if you keep more than you spend.
Why Connections Are The Secret Staircase
You have two paths you can take to get ahead.
Rely on your talent, luck, skills, good looks, and grades.
OR
You can be mediocre and average, including in school especially since it isnât indicative of what you can really do outside of the classroom and get to know as many people as you can, be authentic/relatable/down-to-earth, contitnuously curious, help as many as you can without asking for anything in return, think outside of the box, take advantage of every opporutnty that comes your way as a student, act as a sponge absorbing everything, not worry about judgment, embarrassment, rejection or failure. and have persistent and committed habits to becoming the best version of yourself daily.
Most people prefer to take the safe route. Rely on their degree and hard skills. The truth is, you donât want to fit in. You want to be irreplcable and distinguish yourself from others and that starts with making others feel good so they can actually rememeber you! This increases your earning spotential by 2â6 fold since people rely and trust you. You build pyschological comfort. An immediate need in life.
What Iâve found that works best in order to rise up the income ladder without stretching yourself too thin and tackling on freelance jobs you hate, is to get to know more people and start being there for othersâ successes.
Why is this relevant?
Because when you start becoming human, likeable, not envious, and instead inspired by others. People will not only like you more, they will want to help you. Thereâs always room at the top. Juts because your colleague âmade itâ doesnât mean you canât.
The truth is, the higher your income, the more you are paid for your likability, personality traits, how irreplaceable you are, and how many people you have helped not just yourself.
Granted, this is all on your part. No one can do this for you but at the end of the day, it isnât as complicated as it may seem since we always need some help.
Now coming from a 21 year old, you may feel skeptical about this advice and may say to yourself, âwhat does she know? Sheâs still in college and hasnât accomplished anything!â
I certainly donât know everything nor ever will but Iâve been able to learn from people whoâve gone from rags to riches, those who finally feel they are fully supported and or financially afloat, and been able to achieve success they never thought they could all from focusing on themseleves. It may sound selfish but the truth is, people want to work with others that continously invest in themselves. Think for a second about the people that you really enjoy working with or just being around. They may not be the smartest in the room or know everything, but Iâm sure they make you feel great, inspired, and comfortable. That leads them to be easy to work with! That secret sauce cannot be cultivated inside a classroom. It starts with experience and it will slowly increase your income by a step-up basis the more you practice it.
Majority of the top 1%âs income raises, promotions, bonuses, and opportunities came about from cultivating relationships. The reality is people prefer to work with people who look and act like them. We need diversity in the workplace and need to escape from this thinking but humans are social creatures. We need psychological comfort so dig into that and know how to make others successful so you can make yourself even more. It sounds counterintuitive but someone elsesâ success doesnât take away yours.
Giving is the best gift to get ahead.
Income Breakdown
Whenever we think of networking, we reflect back to the worst possible experiences we witnessed. Possibly a networking brunch or some awkward formal professional dinner that your parents made you attend in high school. These negative situations are implanted into your brain forever and since then, you may treat every networking opportunity like a stern, unrelatable, cautious, scary moment.
But the reality is, the more calm, collected, personable, and you you are, the better. Professionalism isnât about changing your personality and not showing it. It doesnât mean leaving yourself behind. Thatâs not what people are looking for. They want a conversation and a genuine connection not the same one with everyone else.
It should be enjoyable and if you want to learn from and meet the top 1% and above, mastering the art of communication is essential. To learn from the masters, just watch talk or radio show hosts, public motivational speakers, legendary podcasters, and executives and founders that represent a company. They need to be likeable in order to boost sales, ratings, and keep the company running! They are the image not necessarily the brains behind the brand.
Whatâs fascinating is that higher earners not only have more connections in their respective field than the average individual, they dedicate more time each week to cultivating all kinds of relationships. A person is behind that connection not a computer. They are dedicating their time to you and they acknowledge it is a reciprocal relationship. These people are not only more fufilled due to having stronger relationships, they are easier to get along with, and credit a majority of their success to other people!
To see what I mean, you can check out my interview with the wealthiest people I know.
Believing you can do everything on your own overnight is the most dangerous belief. It doesnât happen in the markets nor anywhere.
There were distinct similarities and traits found in my interviewees that have helped propel their success more than IQ, talent or skill.
They include:
-Charisma
-Humble-credit their success with luck and a classic, âmet the right person at the right timeâ
-Non-procrastinator
-Good listener
-Patient
-Funny
-Respectful
-Calm and collected
-Curious
-Friendly
There are 3 things that everyone should be good at in life to get anything they desire:
-Produce quality work
-Deliver on time
-Get along with people
Funny enough, usually you only need to be good in 2 out of the 3 things but of course I would advise you to hone the 3. Itâs only 3!
Now that weâve unpacked the seemingly basic yet vital and overlooked skills that majority of people donât seem to dedicate enough attention to, letâs understand who these master communicators are.
Net Worth To Net You
Net Worth USA PercentilesâââTop 1%, 5%, 10%, and 50% in Net Worth
The top 1% of net worth in USA in 2021 = $10,500,000
The top 2% of net worth in USA in 2021 = $2,400,000
The top 5% of net worth in USA in 2021 = $1,000,000
The top 10% of net worth in USA in 2021 = $830,000
The top 50% of net worth in USA in 2021 = $507,000
As a reminder from my recent post, itâs much easier to have a higher W2 income than a higher net-worth since most people get hooked on the salary, not their balance sheet which can get dangerous. As soon as you can, I would pay closer attention to your total assets and liabilities not your AGI to know how much you are really WORTH not earning then end up spending. Majority of Americans owe more than they own with a hefty percentage of their net-worth still tied to thier primary residence even since 08!
To achieve a six, seven or above net-income takes commitment, sacrifice, late-nights, early-mornings, rejections, failure x 100, networking, and immense responsibility that most arenât willing to put up with.
People chase comfort and avoid pain. Clearly that wonât get you far. You miss all the shots you donât take and the more you fail, the more likely you are to succeed overtime.
Obviously the biggest reward of earning a higher take home pay is more in the bank yet up to a certain income of $170,051 to $215,950, your short-term capital gains tax rate is at a marginal tax rate of 32% which means your long-term capital gains is at 15%! This is an extraordinary amount of taxes you must pay. The higher W2 income = higher taxes.
Now if you are a loyal American and want to give back and support the bottom 90% who are reliant on you, then you should have no problem giving away almost half of your income in taxes over your lifetime, but for the most Americans, especially billionares, sadly that isnât a shared sentiment. Yet overtime this can make you even wealthier since more money will be pumped into the economy which leads asset prices higher. But most arenât convinced the government and IRS can bring about those changes. For obvious reasons.
To get to this obscene level of income is highly unpredictable, requires a ton of luck, timing, dedication, patience, and is most notably, rare. Entertainment, real estate, entrepreneurial, and solo-venture routes are the most unpredictable paths since as an 18-year-old movie star you could be easily making a couple million within a few years which would normally take a doctor or reporter for instance decades to earn. Not to mention hefty student loans that reduce take-home pay for the first few years.
But along with working in these grueling unpredictable industries comes with a lack of work-life balance, security, inconsistent earnings, heightened scrutiny, uncertainty, no employer sponsored retirement plans, potential embrassement from family, lack of education, and massive self-doubt and concern with no sturdy full-time all-year round job. Working in the entertainment space is a one-hit wonder. It looks terrific on screen but behind the screens, as many entertainers, musicians, performers, etc. confess, it isnât as glamourous as it looks especially with contracts in place. If you are on TV, you can be replaced anytime since audiences change thier preferences. This puts more pressure on the star to come up with a new style and always be relevant, not always worth it for their mental health or earnings as lump-sums can be dangerous especially with no financail literacy background in place which accounts for 50% of the American population.
I applaud those in the entertainment industry and those who follow a solo-entrepreneurial route who are willing to do anything to continue honing their craft.
Theyâve really proven they love their career regardless of any barrier that comes their way and it is truly priceless. I believe thereâs no better reward than making your own money, not through a company. You know you are capable of something great when you can earn money from home on your own and more Americans than ever have adopted this lifestyle charging the path for the Great Resignation. â rd of Americans are self-employed today! Maybe too many but only time will tell!
Whether or not your mission is to become a part of the top 1% or above is irrelevant. It is your purpose and drive that counts. Once you top focusing on the money and instead on what you can provide, the earnings will come pouring in.
At the end of each year when bonuses and promotions come around, you want to be memorable. This doesnât just start at the end of the year, this is an all-year-round style you must cultivate and keep in mind.
Behind the Curtain
These individuals who we will dive into in a moment are most aware of this. It is less likely you will be in the top .01% in your teens in one industry than in another due to luck and timingâââthe main ingredients for success.
As a refresh, success = opportunity + preparation + stoicism + luck
Always stay humble and thank luck. Itâs on your side and comes out when you least expect it.
Eventually through unwavering commitment and dedicaiton, you can achieve anything. Just like Kim Kardashian who passed the baby bar on her 4th attempt! The 4th is the charm.
Your past isnât indicative of your future. Where you are now isnât where you will be and making assumptions or judging someone by the cover is a poor move. According to several studies, the so-called âgeniusesâ at school donât tend to turn out to be more successful or earn a higher living than those who didnât score high on tests. Life works in unpredictable ways and we cannot always control it but what we can control is our personality, emotions, the extra 110% effort, time, commitment we put into something.
The higher you rise on the income ladder, the more focus on personality and less attention on the arbitrary metrics you must have.
Breakdown
Sadly majority of Americans live pay check to paycheck. Over 75% of the bottom 50%âs paychecks go towards rent or basic living expenses and necessities. Not only this, inflation and regressive tax eats into prices which disproportionately impacts them the most.
On the flip side, the wealthiest are able to get by on paying nothing in federal, state, property, income tax due to various loopholes, ties with Washington, tax shelters, estate planning rules, WFH option to live anywhere a.k.a FLORIDA, and majorty of their earnings are through the market and is composed of equity based compensation. Many of these strategies and income offerings arenât available to most Americans who canât even afford a 20% deposit on their home, earn W2 income, and are reliant on stimulus checks.
The top 0.01% of individuals own 11% of global wealth, according to the new World Inequality Report 2022, up from 10% last year. That top 0.01% includes 520,000 adults with household wealth of at least $19 million.
The top .01% are mostly known as the super-rich. They own a share of 11% of global wealth, up from 10% since last year since thier compensation to net-worth holdings are tied up to their businesses, properties, company stock price, investments, and lucrative precious assets such as artwork and real estate.
It is rare to be a part of the top .01% and not be a business owner since there are too many tax advantages to doing so most evidently placing yourself in the lowest tax bracket and deducting expenses towards your business.
Yet what is a shared activity/quality amongst the top 20% and above is being an investor and home owner. I always advice to rent luxury, buy utility. The non-business folks that are a part of this small subset of the population include talk show hosts, anchors, celebrities, gamers, writers, aggressive legendary investors, land owners, and or executives.
What It Takes
Beyond luck, timing, patience, grit, connections, and confidence, above all it takes personality, and a goal BEYOND money. If you are only chasing it, it will run faster away from you.
You always want to set a goal for yourself. Even when you are convinced, âyouâve made itâ, I would always encourage you to stretch and expand your brain everyday to always have a goal in mind. There are dozens of people we admire that could quit today and retire forever but they consistently choose not to becuase they are eager to see what they are still capable of. When work and networking doesnât feel like work, thatâs solid gold.
You can quickly become depressed, suicidal, and a mess if arenât careful about how you are spending your time and what you chase after.
Never let money be your only goal. Once you hit the average annual income of $75k, your basic needs are met and no more paychecks or Ferraris will make you happier long-term, especially if you deal with health issues, something to keep out for when you earn more.
Stay humble, prudent, and authentically you. Itâs easier said than done.
Everything is difficult before it gets easier.