According to our recent survey, just over 77 % of America’s Middle Class Millionaires, those with a net worth between $1 million and $10 million that they have earned, rather than inherited, say that a recession is imminent. Further, an overwhelming number of them, 93%, do not believe the government will offer relief or a significant bail out plan.
Between February 11 and 16, Russ Prince and I conducted a new study about how Middle-Class Millionaires feel about the current economic climate. We surveyed a random sample of 206 household decision-makers with a net worth between $1 million and $10 million, all self-made. We learned that that, in the face of expected economic adversity, Middle-Class Millionaires are increasing their reliance on the very behaviors that differentiate them from the middle-class (based on past survey responses). Seventy-nine percent told us they will leverage their personal and professional networks more than ever in order to persevere in the face of economic adversity. Further, seventy six percent told us they will be even more aggressive in their financial dealings (76%), negotiating harder than ever with vendors, customers, employees and business partners. Together these characteristics, along with working harder than their middle class counterparts, make up the core of what we call Millionaire Intelligence, as described in our book, The Middle-Class Millionaire (www.middle-class-millionaire.com).
Interestingly, Middle Class Millionaires don’t intend to work more hours in this economic downturn because they are already “maxed out.” According to earlier studies, conducted in 2006, the Middle-Class Millionaire works 70 hours per week, compared to 41 hours by the rest of the middle-class. Instead, Middle-Class Millionaires plan to make their work time more effective by increasing their use of external resources, such as executive coaches. 57% of those surveyed said they would increase the amount of time they spent with a coach to maximize their effectiveness at work. Of the 55% percent who currently don’t use a coach, 68% intend to hire one in order to work through tough times that are likely ahead.
We are at a moment in time when we should turn to this group of successful individuals for advice. We should be asking how they would respond in a recession because they have been successful in overcoming difficulty to create their own wealth.
Questions for you:
Does this climate of economic uncertainty feel like a chance to grow your practice through acquisition? Are you considering any acquisitions? Are you the target of acquisitions?
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Good site I “Stumbledupon” it today and gave it a stumble for you.. looking forward to seeing what else you have..later
Well, here we are 1 1/2 year after this article was posted.
The Goverment did supply enough money into the economy by giving loans and keeping banks afloat. The stock market has recovered what it lost from the same time last year.
Now, the next article should be “What now in 2010″.