Want to become a millionaire? Turns out, your personality might help — or hurt — your chances.
A new study from the Socio-Economic Panel (SOEP) at the German Institute for Economic Research and the University of Munster found that millionaires, especially self-made ones, tend to be more risk-tolerant, emotionally stable, open, extroverted and conscientious than everyone else.
"This is the first study to describe the personality of millionaires using robust data," Mitja Back, a University of Munster psychology professor who co-authored the study, said in a university statement. "Since the rich wield particular influence over societal decision-making processes, and since personality has a determining influence on the way people think and behave, the investigation of millionaires' personality traits is of great social relevance."
Researchers studied data from validated personality tests of more than 20,000 sampled individuals in the SOEP, an ongoing household-based study of thousands of people in Germany that began in 1984. Of the personality tests researchers studied, more than 1,000 were from millionaires.
The tests measured what the study's authors referred to as the "Big Five" personality traits: neuroticism, extraversion, openness to experience, agreeableness and conscientiousness. Researchers say traits like risk tolerance, emotional stability and extraversion were especially evident among self-made millionaires, and "less pronounced" in people who inherited their fortunes.
The higher the wealth, the more pronounced those personality traits were, the study said. Even among non-millionaires, people who saw themselves as self-made — or, in other words, having made their money on their own, without significant help from others — shared many of the same personality traits.
"Taken together, the results suggest that personality is a relevant factor inwealth accumulation," Johannes König, a research associate at SOEP and another study co-author, said in the same university statement.
The study was published last week in the journal Humanities and Social Sciences Communications. Researchers defined "millionaire" as someone with an individual net worth of at least 1 million euros, which equates to $1,092,450, as of Thursday morning.
Nearly 22 million people in the U.S. fit that description, according to a 2021 study by Credit Suisse — although the study's authors warned that German millionaires may differ in personality from millionaires in other "high-wealth countries," including the United States.
The U.S. has "more unequal" wealth distribution than Germany and "is generally considered to be more individualistic than other countries," the study noted.
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As an expert with a comprehensive understanding of personality traits and their impact on success, I'd like to delve into the intriguing findings of the study conducted by the Socio-Economic Panel (SOEP) at the German Institute for Economic Research and the University of Munster. My expertise in psychology and socio-economic factors allows me to provide valuable insights into the relationship between personality traits and millionaire status.
The study, authored by Mitja Back, a psychology professor at the University of Munster, and Johannes König, a research associate at SOEP, is groundbreaking in its exploration of the personality characteristics associated with millionaires, particularly those who are self-made. The research involved analyzing data from validated personality tests administered to over 20,000 individuals, with a significant focus on the "Big Five" personality traits: neuroticism, extraversion, openness to experience, agreeableness, and conscientiousness.
The key findings of the study reveal that self-made millionaires exhibit higher levels of risk tolerance, emotional stability, openness, extraversion, and conscientiousness compared to the general population. These traits were especially pronounced in individuals who accumulated wealth through their own efforts, as opposed to those who inherited their fortunes. The researchers emphasize that as wealth increases, so does the prominence of these personality traits.
One crucial aspect highlighted by the study is the societal relevance of understanding the personality traits of millionaires. The rich, being influential in societal decision-making processes, can shape the direction of economies and communities. Personality, as demonstrated by this research, plays a determining role in how individuals think and behave, making the investigation of millionaires' personality traits socially significant.
The study, published in the journal Humanities and Social Sciences Communications, defines a "millionaire" as someone with an individual net worth of at least 1 million euros. It's important to note that the study acknowledges potential differences in the personality traits of German millionaires compared to those in other high-wealth countries, such as the United States, due to variations in wealth distribution and cultural factors.
In conclusion, the evidence presented in this study suggests a strong connection between certain personality traits and wealth accumulation, especially among self-made millionaires. Understanding these traits can provide valuable insights for individuals aspiring to financial success and contribute to the broader discourse on the intersection of personality and socio-economic factors.
FAQs
Overall, they tended to be more risk-tolerant, open, extraverted and conscientious than the rest of the group. The study also found that these individuals tended to be less neurotic than others.
What are the 5 main personality traits? ›
Many contemporary personality psychologists believe that there are five basic dimensions of personality, often referred to as the "Big 5" personality traits. The Big 5 personality traits are extraversion (also often spelled extroversion), agreeableness, openness, conscientiousness, and neuroticism.
What are the Big Five personality traits that have been found to relate to effective leaders? ›
Evidence of this theory has grown over the years with the principle theory emerging in 1949. The five broad personality traits described by the theory are extraversion (also often spelled extroversion), agreeableness, openness, conscientiousness, and neuroticism.
What personality type are most millionaires? ›
The two studies consistently found that rich people are more conscientious, open to experience, and extraverted than the average population. They are also less agreeable (that is, less likely to shy away from conflict) and less neurotic (as in, more psychologically stable).
Why is the Big 5 personality test important? ›
Helps understand individual differences: The Big Five model can help us understand the individual differences in personality that can influence how people perceive and react to the world around them. This can be useful for personal development, counseling, and management.
What are the Big Five personality traits ______________? ›
The Big Five personality traits are broad domains/dimensions of personality and include the following traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism (under the acronym, OCEAN).
What are the big 5 personality traits predict? ›
Types of Outcomes
Personal outcomes predicted by personality include subjective well-being (predicted by extraversion and neuroticism), spirituality (predicted by conscientiousness, openness, and agreeableness), and health (predicted by conscientiousness, neuroticism, and agreeableness).
What is the Big 5 personality of CEOS? ›
The Big Five personality traits are (1) Openness to experience, (2) Conscientiousness, (3) Extraversion, (4) Agreeableness, and (5) Neuroticism, in short, OCEAN. Costa Jr. and McCrae (1988) and Digman (1989) further showed that the Big Five personality traits are heritable and fairly stable over time.
What is the 5 major leadership trait? ›
He ultimately proposed a set of five major leadership traits that individuals should possess or seek to develop: intelligence, self-confidence, determination, integrity, and sociability.
What are the five 5 powerful leadership traits of a good leader? ›
5 Characteristics Every Good Leader Should Have
- Decisiveness. The ability to make decisions, particularly when under pressure, is an important skill to master. ...
- Trustworthiness. ...
- Empowerment of others. ...
- Clear communication. ...
- Resilience.
The average IQ of self-made deca-millionaires (over $10M net worth) is 118. The average IQ of self-made* billionaires is 133. The average IQ of self-made deca-billionaires (over $10B net worth) is 151. Of note, average incomes correlate well with IQ, however there is a much lower correlation between IQ and net wealth.
What is the number 1 rarest personality type? ›
INFJ. INFJ, also known as the advocate, counselor, or idealist, is the rarest type of personality in the general population. It represents about 1.5% of the general population in the United States.
How to spot a wealthy person? ›
- Minimalist Homes: Where Less Is More. ...
- Low Profile Luxury Cars: Driving Discretion. ...
- High-quality Wardrobes with Minimal Brand Identification: Style with Substance. ...
- Real Generational Wealth: Steadfast Stability. ...
- Subtle Signs of Real Estate Investment: Property Portfolio. ...
- Pearliness of Their Whites: A Smile of Affluence.
The Five Factor Model breaks personality down into five components: Agreeableness, Conscientiousness, Extraversion, Openness, and Stress Tolerance. These are broad dimensions of personality that exist across cultures and geographies, making them an ideal way to assess personality.
What are the 5 factors of personality? ›
Personality traits are understood as patterns of thought, feeling, and behaviour that are relatively enduring across an individual's life span. The traits that constitute the five-factor model are extraversion, neuroticism, openness to experience, agreeableness, and conscientiousness.
Can you change your Big 5 personality traits? ›
In particular, they talk about the "Big Five": openness, conscientiousness, extraversion, agreeableness and neuroticism. Evidence suggests that these traits aren't fixed at all, and some research shows you can intentionally change these personality traits.
What are the six big personality traits? ›
The six factors, or dimensions, include honesty-humility (H), emotionality (E), extraversion (X), agreeableness (A), conscientiousness (C), and openness to experience (O).
What are positive character traits? ›
Caring, including kindness, empathy, compassion, consideration, patience, generosity, charity, and interpersonal skills. Good citizenship, including patriotism, concern for the common good and the community, responsible decision-making skills, and respect for authority and the law.
What are the four types of personality traits? ›
Understanding the four different personality types. Marston's theory plots human behavior along just two dimensions: 'internal' and 'external', which interact to produce the four different behavioral types, or modes of expression: Dominance, Influence, Steadiness and Compliance.
What is the 5th personality? ›
Enneagram Type 5 in Brief
Fives are alert, insightful, and curious. They are able to concentrate and focus on developing complex ideas and skills. Independent, innovative, and inventive, they can also become preoccupied with their thoughts and imaginary constructs. They become detached, yet high-strung and intense.
