Money can’t buy you everything—but there’s no denying that a certain comfort can be found in security, in the ability to not have to worry about money for the rest of your life, to be, as they called it, rich (still not sure who “they” are). (Apparently you can tell if someone’s rich just by looking them in the face, according to a study.)
However, it’s getting harder and harder to achieve prosperity, according to a new study from the Federal Reserve Bank of Cleveland. The research focused on the upward mobility of low-income families between 1968 and 2013, and found that in the last 10 years of the study, families had the lowest mobility in decades.
The families who fell into the bottom 20 percent of the group wealth-wise were classified as the low-wealth group (close to no assets), while the top 20 percent of the group were classified as the high-wealth group.
From 2003 to 2013, 64 percent of the low wealth families made no progress financially and remained on a constant financial footing over the decade. Just one percent of families in the low-wealth group made it into the high-wealth group in that span.
The terms “low-wealth” and “high-wealth” are different than “low-income” and “high-income.” Although income can often indicate one’s path to acquire wealth, it’s not necessarily a direct correlation. Income is how much money you make, while wealth (also known as net-worth) includes available funds, real estate, stocks, bonds, and other assets of value.
Looking for ways to make some extra money? Check out these 10 ways to make some cash—fast.
[Source: Pittsburgh Post-Gazette]