Do I Have Any Real Wealthy People Around Me?
In this post, I want to share my observations about the characteristics of wealthy individuals I’ve met in person. Nowadays, most people under 50 consume media through smartphones rather than television. In the past, television dramas often portrayed a stereotypical image of wealthy people. In contrast, today, platforms like Instagram and YouTube provide diverse glimpses into the lives of the rich around the world.
However, the opportunity to meet a genuinely wealthy person in your everyday life is rare. Unless you are wealthy yourself, it is unlikely that you have close relationships with truly wealthy relatives or acquaintances.
Many who have become wealthy often advise aspiring individuals to stay close to the wealthy, emulate them, and learn from them. Yet, much like the “chicken or the egg” conundrum, if you are not wealthy, the chances of having wealthy people around you are slim, except for family connections.
Wealthy Relatives Around Me
My grandparents were farmers in the countryside, and my father and his siblings also grew up there with minimal education or financial support. However, many of my relatives engaged in business or ran their own shops, so I was exposed to various stories about wealth from a young age.
Up until the early 2000s, my father’s siblings seemed to be doing well in their businesses, achieving a certain level of wealth. However, in the 20 years since then, only one household among my relatives has managed to become significantly wealthy, while many have lost their wealth or gone bankrupt. Clearly, maintaining wealth for an extended period is challenging, and reaching the next level of affluence is even harder.
Having met and interacted with wealthy relatives and people around me, I’d like to share some personal thoughts on the subject.
The Shift in Wealth Accumulation: Wages Over Business Income
In the past, most wealth was generated through business income. However, as reflected in the “Korea Wealth Report” published annually by KB Financial Group, income from professional jobs and large corporations has now become a significant source of wealth.
As business risks increase and rapid economic growth slows, paradoxically, the likelihood of sustained business income has decreased. Conversely, as professional and corporate salaries have risen significantly, many have become wealthy through employment.
In particular, with substantial increases in real estate prices over the last 20 years and the relative ease of accessing investment information, many new wealthy individuals have emerged through real estate, stocks, and cryptocurrencies.
Although not typical, the rise of social media platforms like YouTube and Instagram, as well as other digital channels like webtoons, has enabled younger generations to generate substantial income over short periods.
However, as evidenced by the Korea Wealth Report, the most stable and sustainable way to grow wealth remains real estate. The wealthy people around me mostly live in major cities like Seoul, Busan, and Daegu, usually in the most expensive neighborhoods. Additionally, they often own commercial properties, warehouses, and factories.
Opportunities to Earn Big Money Come, But Not for Long
Older wealthy individuals often share a common insight: “Opportunities to make money come around three times in a lifetime.” Regardless of scale, a moment when money flows in unexpectedly will eventually arrive.
At this juncture, the path splits: one can either become wealthier or lose everything. Whether running a barbecue restaurant or a large-scale distribution business, there comes a time when luck aligns, and income skyrockets far beyond normal expectations.
Most people, when their business suddenly booms, mistakenly believe it’s solely due to their competence and expand their operations recklessly. As their income grows substantially, they tend to make extravagant purchases like luxury cars or golf memberships, thinking the good times will last forever. However, these phases of extraordinary earnings typically last no longer than six months to three years.
When such a windfall occurs, it is crucial to expand the business cautiously and invest the excess in stable assets like office buildings or warehouses. This conservative approach allows for a gradual accumulation of wealth until the next cycle of high earnings.
However, based on stories I’ve heard from acquaintances, many people fail to withstand the period between windfalls, ultimately going bankrupt due to reckless spending and business expansion.
Whether running a small business or a larger enterprise, if