Science Says You Don’t Have to Be (That) Smart to Get Rich

I asked LinkedIn followers to choose which personal attribute contributes most to financial success. (There are plenty of other types, since we all get to decide how we define “success.”)

If that’s your goal, or a goal, which attribute is most likely to make you wealthy? Lots of people said education. Others cited access to opportunities, which isn’t really a personal attribute. Or maybe it is: research shows having wealthy parents can make a huge difference. Others said calculated risk-taking.

But most people chose intelligence, which is what I would have said.

But we’re probably wrong. Nobel Prize-winning economist James Heckman asked people to predict how great a role innate intelligence plays in financial success. (Think how much of the difference between my income and yours, or my net worth and yours, is based on our relative IQs.)

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Most people said intelligence accounted for 25 percent of the difference. Some said up to 50 percent.

Nope. Heckman’s research reveals that innate intelligence plays, at best, a 1 to 2 percent role in a child’s future success. Instead, financial success is correlated to three personality traits that make up what Heckman calls conscientiousness: self-discipline, perseverance, and diligence.

The study’s findings mesh nicely with Mark Cuban’s position on what contributes most to success. According to Cuban, financial success “is not about money or connections. It’s the willingness to outwork and outlearn everyone.”