Did you know that immigrants are 4 times more likely to be millionaires than those that are born in the USA? This is a staggering statistic that I learned a few years ago and I don’t think I’ll ever forget it. Immigrants are more wealthy than you because they understand the opportunity. Those of us that have grown up with this amazing opportunity should be ashamed of our complacency.
5 Reasons Why Immigrants Are More Wealthy Than You
For those of you that know me, you know that I’m a hamburger and hot dog kind of guy. While I don’t think this will ever change, my wife is still trying to expand my very selective palette. Just a couple of weeks ago she decided that my taste buds were in need of an awakening, so off we went to China Kitchen.
This restaurant was quite small and was designed to handle mostly take-out. As I viewed the employees, it was fairly evident that they were a family. The young boy (I pegged him as an 11 year old) took our order and the adults were cooking and cleaning. The operation was fairly simple, but you could tell they did quite a lot of business.
I would dare say that my wife and I were standing amongst millionaires. If they were not at that moment, I bet they are well on their way.
1) They Are Not Materialistic
Immigrants do not come to the United States to expand their credit and put their furniture on a 50 month 0% interest plan… They are content if they have a roof over their heads and food in their stomachs. They couldn’t care less about the new 60″ television that can pause and rewind.
2) They Are Savers
Americans might just be the worst savers in the world. Even when things are bleak, we save only 5% of our earnings.
Want to know why immigrants are more wealthy than you?
It’s not unheard of for them to save 15-20% of their income (or even more!). Therefore, less of their money is going to depreciating assets. Instead, much of the immigrants’ income is appreciating, either in a savings account or another investment fund.
3) They Are Risk-Averse
While Americans tend to save very little, the amount that we do save is often placed in unsafe markets because we are greedy. We want to make more than 10% on our money each year, and most of the time it gets the best of us. Rather than earning our massive return, we often enter into a few bad deals which negate much of our overall profits.
Immigrants are more wealthy than you because they take a much different approach. Rather than try to “beat the market”, they are content to gain a smaller return on their savings and decrease the overall risk tremendously. In the end, they often earn a higher return that us Americans because they hardly ever choose a losing investment.
4) They Keep Their Expenses Low
The family we met at China Kitchen most likely consists of grandparents, uncles, aunts, nieces, and nephews, but rather than renting 3 or 4 different apartments, they all live together and travel together. This reduces their expenses in a huge way! When the bills are divided among 8 people rather than 2, it really makes a big difference.
5) Profits Are Reinvested in the Business
Many immigrants are entrepreneurs and earn quite a hefty sum each year. If we Americans were earning a large amount of money, we’d most likely buy a brand new sports car or a house on the lake to show off our wealth. Not the immigrants. They’ll take those earnings and reinvest in their business, which will earn them a much larger sum in the future.
Don’t Take This Opportunity For Granted
If you are currently reading this article within the United States (or Canada), I suggest you get off your duff and learn something from those 1st generation immigrants. We have a great opportunity in this nation and we should not squander it.
It’s true, immigrants are more wealthy than you. What are you currently doing to take advantage of this land of opportunity?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.