Do You Need to Be a Genius to Become Rich?
The other day, while scrolling through my Facebook “For You” page, I stumbled on a random but thought-provoking question:
👉 Do you really need to be a genius to become rich?
It’s a simple line, but it carries so much weight. It makes us pause and reflect: is wealth reserved only for the ultra-smart, the gifted, or the ones with IQ levels off the charts? Or is there more to the story?
Let’s unpack this together.
The Link Between Intelligence and Wealth
When we think of the world’s billionaires and self-made millionaires, the first image that comes to mind is often of tech innovators or finance wizards who must be “geniuses.” But the truth is, many of them don’t fit the conventional definition of “genius” at all.
- Bill Gates dropped out of Harvard.
- Steve Jobs left college after just one semester.
- Richard Branson, founder of the Virgin Group, struggled with dyslexia and never finished high school.
- Michael Dell, who started Dell Computers, left college at 19 to pursue his business full-time.
These people weren’t “geniuses” in the academic sense. They weren’t perfect students with flawless grades. Yet, they built empires that shaped industries and transformed how we live.
So if being rich depended solely on intelligence or academic performance, how do we explain their success?
What the Research Says
To answer this, let’s look at actual research. Jay Zagorsky from Ohio State University’s Center for Human Resource Research conducted a fascinating study. He followed over 7,000 Americans from their teenage years into adulthood, measuring both their IQ levels and their financial outcomes.
Here’s what he found:
- Smarter people tend to earn higher incomes.
There’s a clear link between intelligence and earning ability. Those with higher IQs often get higher-paying jobs. - But intelligence does not guarantee wealth.
This is the surprising part. While higher IQs were linked to better salaries, they didn’t always translate into higher net worth.
In fact, the study showed that individuals with slightly above-average IQs often had greater net worth than those with very high IQs. Why? Because wealth isn’t just about how much money you make—it’s about how much you keep and grow.
Here’s how Zagorsky defined it:
Wealth = Assets (cash, investments, home, property) – Liabilities (debts, loans, credit card balances).
And here’s the kicker: many high-IQ individuals had high incomes but also high debts, poor savings habits, or expensive lifestyles that canceled out their earnings.
As Zagorsky himself said: “Even smart people don’t save.”
Intelligence vs. Financial Behavior
So, what does this mean for us?
It means that wealth has less to do with IQ and more to do with financial behavior.
Let’s break it down:
- A genius who earns ₱300,000 a month but spends ₱310,000 is not building wealth.
- An average employee who earns ₱40,000 a month, saves ₱10,000 consistently, and invests wisely can slowly but surely build wealth.
It’s not about brilliance—it’s about discipline.
In fact, studies in behavioral economics show that habits like delayed gratification, budgeting, and investing early are better predictors of long-term wealth than intelligence scores.
The Role of Financial IQ
Here’s where the concept of financial IQ comes in.
Financial IQ isn’t about how high your IQ test score is. It’s about your understanding and application of money principles—how you handle debt, how you budget, how you save, and how you grow your money.
For example:
- Budgeting → Knowing how much comes in and goes out each month.
- Investing → Putting money into assets that grow over time (stocks, mutual funds, crypto, real estate, businesses).
- Debt Management → Using debt wisely instead of letting it bury you.
- Risk Management → Having insurance or emergency funds to protect your wealth.
You don’t need to be a math wizard to learn these things. You just need the willingness to study, practice, and stay consistent.
Lessons from Everyday Life
Let’s take it closer to home.
Think about OFWs (Overseas Filipino Workers). Many of them earn salaries much higher than what’s available locally. But not all come home financially secure. Why? Because higher income without financial literacy often leads to lifestyle inflation—spending more just because you earn more.
On the flip side, there are countless stories of employees, teachers, or small business owners who don’t earn six figures but manage to retire comfortably. Their secret? Consistent saving, modest spending, and smart investing.
Another example is lottery winners. A study from the U.S. showed that nearly 70% of lottery winners end up broke within a few years. They weren’t “geniuses,” sure, but they also weren’t financially literate. Having a sudden influx of money without the right habits is a recipe for disaster.
Practical Ways to Build Wealth (Even If You’re Not a Genius)
So if genius-level intelligence isn’t required, what is? Habits. And here are some practical ones you can start today:
- Learn how money works.
Read books, watch videos, or take financial literacy courses. Knowledge compounds just like money does. - Budget consistently.
Track your expenses. Know where every peso goes. - Start investing early.
Even small amounts can grow significantly through compound interest. For example, investing ₱5,000 a month at 10% annual returns can grow into millions over 20–30 years. - Avoid unnecessary debt.
Credit cards are not free money. Use them wisely or not at all. - Practice delayed gratification.
Learn to say no to short-term wants so you can say yes to long-term wealth. - Automate savings.
Set up automatic transfers to savings or investment accounts so you don’t rely on willpower.
These habits are accessible to everyone—regardless of IQ score.
Final Thought
So, do you need to be a genius to be wealthy? The answer is a clear no.
While intelligence may help you land a good job or earn more, wealth is ultimately built through discipline, financial literacy, and consistent habits.
Being “smart” with money has nothing to do with solving advanced calculus problems. It’s about solving your day-to-day financial choices: Do I spend or save? Do I invest or waste? Do I borrow or wait?
At the end of the day, wealth is not about your IQ—it’s about your financial IQ. And the best part? Unlike IQ, financial IQ can be learned, practiced, and improved at any age.
So instead of asking, “Do I need to be a genius to be rich?” maybe the better question is:
👉 Am I willing to learn and apply the right money habits to build lasting wealth?
Because that’s where true financial success begins.
