What if I told you that having a high IQ does not guarantee a high bank balance?
Sounds shocking, right? Yet, data from multiple global studies reveal something most people don’t want to believe — intelligence and income do not always walk hand in hand.
Meet Sam and Lucy – high school classmates with very different financial fates. Sam never topped the class (average SATs, no advanced degrees) but disciplined himself to save, invest and build businesses. Lucy was a straight-A student with sky-high IQ scores, yet she still lives paycheck-to-paycheck. Which story is more common? It turns out IQ and wealth are not as tightly linked as you might think.
A 45-year longitudinal study from the National Bureau of Economic Research found only a modest correlation (0.23) between IQ and lifetime earnings. That means you could be brilliant… and still broke. Meanwhile, someone with average intelligence could quietly be building a fortune.
So, what’s really going on?
If smart people are not always rich — and rich people aren’t always geniuses — what actually drives wealth?
That’s where the real story begins — in the hidden psychology of rich people.
Because while IQ measures logic and reasoning, wealth responds to behavior — patience, risk-taking, adaptability, and emotional control. And when you understand this delicate dance between IQ and Wealth, you begin to see why the world’s most successful individuals often operate on a mindset far beyond what an IQ test can measure.
Let’s decode the truth — backed by science, sharpened by psychology, and made actionable for your next financial breakthrough.
IQ vs Income: What’s the Correlation?
First, let’s tackle the income angle. Several studies show that people with higher IQs tend to earn more, but the effect is modest. For example, a large U.S. study found an IQ-income correlation around 0.46 (meaning IQ explains about 21% of income differences). In practical terms, researchers found each additional IQ point adds roughly $234–$616 to annual income. So yes, high-IQ individuals often land higher-paying jobs.
Key takeaway: Don’t panic if you have average IQ – you can still earn huge in business or a great salary by leveraging your skills, experience, and work ethic. IQ is only one of many factors in pay (education, industry, persistence all count).
• How closely does salary track IQ? Pretty well up to a point. Studies (including a 59,000-person Swedish study) show that at normal wage levels, smarter people usually earn more. A clever person on an entry-level job often out-earns a lower-IQ peer in the same role. But after a certain threshold (about €60,000/year in that study), the link plateaus. In fact, beyond that level the highest earners were not smarter – sometimes even slightly less so. In short, once you hit comfortable salary ranges, factors like networking and opportunity overshadow raw IQ.
• Average IQ of salaried people: There’s no global stat tracking “the average IQ of salaried workers” specifically (it would vary hugely by country and profession). But remember the general population average IQ is 100, so many salary-earners cluster around that. The point is, income differences exist across IQ levels, but having a higher-than-average IQ only increases typical annual earnings by a few thousand dollars. You can still thrive on a normal IQ if you play your cards right.
IQ and Wealth: The Surprising Truth
Here’s the bombshell: intelligence plays almost no role in accumulating wealth. Wealth (assets, investments, savings) is not the same as income (paychecks). Numerous studies show that smart people are just as likely to be broke as rich, once factors like inheritance and spending are considered. As psychologist Jeremy Dean summarized, “Being smart has almost no relationship to wealth… People with high IQs are no more wealthy than those who are considerably less smart”.
Economist Jay Zagorsky (of Ohio State University) led a 40-year study of 7,400 Americans and found zero correlation between IQ and Wealth (net worth). To quote Zagorsky: “Your IQ has really no relationship to your wealth”. In practice, that means there are plenty of millionaires who weren’t “Genius IQ,” and brainiacs who never save a dime. Inherited wealth is a big factor too – you could be “average IQ” and set if you get a large family inheritance.
• Does intelligence correlate with wealth? Not significantly. One blogput it bluntly: “IQ and income is somewhat correlated… but the relationship between IQ and wealth is all over the map.” Income can be earned by merit, but wealth is often inherited or luck-based. If you inherited a fortune, your IQ had little to do with it. If you didn’t, you have to build wealth from scratch regardless of smarts.
• “Are wealthy people more intelligent?” In everyday life, you might meet rich people from all IQ levels. Some of the wealthiest entrepreneurs (like Bill Gates or Elon Musk) are undeniably brilliant, but others on rich lists are actually only average or above-average. For instance, Bill Cosby – who once made Forbes’ 400 – admitted to low SAT scores (implying IQ in the 90s). Meanwhile Gates’ reported SAT score suggested an IQ around 170. Bottom line: some billionaires are geniuses, some are not. Not all billionaires have high IQ, and many smart people (like academics or engineers) never become millionaires.
• Average IQ of self-made millionaires and billionaires: Some analyses (based on surveys and SAT data) estimate that self-made millionaires average IQ ~118, and billionaires ~130. This is higher than the population norm, but not shockingly so. Many millionaires are solid A/B students, not all are Mensa. And the wealthy who inherited their fortunes often bring the average down. In short, the average IQ of billionaires (~130) is only slightly above genius level – and remember, that includes some who got wealthy by luck or inheritance.
In one famous study, even the very smartest Americans didn’t dominate the rich class. Two-thirds of U.S. billionaires weren’t scholars – it was a mix of students, entrepreneurs, entertainers, and sometimes “lucky guessers.” As Zagorsky noted, there are just as many below-average-IQ people who end up wealthy as vice versa.
“You don’t have to be smart to be rich,” Zigzag the economist once quipped. “There is no relationship between IQ scores and net wealth.”
The takeaway: IQ and Wealth – don’t bet on it. You can outsmart the myth by focusing on what does matter: work ethic, strategy and smart money habits.
Psychology of the Rich: Wealthy vs Poor Mindsets
So if not IQ, then what mindset explains getting rich? A lot of it comes down to how you view money. Rich people tend to have growth-oriented, long-term financial attitudes, whereas poor or cash-strapped folks often have scarcity mindsets. Here are some key differences:
• Money works for them: The wealthy often say “money makes money”. In practice, rich individuals usually invest a portion of their income (stocks, businesses, real estate), letting compound interest do the heavy lifting. Poorer people often see money just as something to spend or just get by on – not as a tool to grow more. As one personal finance blogger put it, “Rich people see money as an opportunity; poor people see it as something to be earned.”
• Long-term goals: Rich-minded people plan far ahead. They set goals (retirement fund, passive income streams) and stick to a budget that builds wealth. In contrast, those with less money often live paycheck-to-paycheck, focusing on immediate needs or short-term pleasures. Again quoting a finance guru: “Rich people think long-term… Poor people live in instant gratification.” This means a wealthy mindset resists impulse buying and prioritizes saving/investing for future payoff.
• Risk tolerance: Wealthy folks are usually more comfortable with calculated risks. They might invest in a startup or the stock market, believing in potential gains because they have some financial cushion. People with fewer resources often avoid risk (since a loss could be disastrous). Being “risk-averse” can keep money safe short-term but may limit growth long-term.
• Learning focus: The rich typically value education and self-improvement. Most millionaires read business books, follow markets, or have mentors. They believe their knowledge – even gained on the job – can improve earnings. In contrast, if someone thinks “I know enough,” they may miss opportunities for growth. (Remember, even a street-smart person with no degree can learn investing basics and build wealth over time.)
Of course, these are general trends – not moral judgments. Not every “poor person mindset” individual is lazy or foolish; often circumstances (like debt or low income) force a short-term focus. Likewise, not every wealthy person is an Olympian planner – sometimes they just stumbled into luck or inheritance.
Are Billionaires Smart or Lucky?
It’s worth zooming in on the ultra-rich. “Are billionaires smart?” Funnily enough, you won’t find a 100% IQ-on-billionaires scale either. Some titans like Bill Gates, Elon Musk and Warren Buffett have sky-high IQ-related scores and legendary smarts. (Bill Gates reportedly scored 1590/1600 on the SAT – roughly equivalent to an IQ ~170. Musk and Bezos also had near-perfect test scores.) But a counterexample: comedian-turned-billionaire Bill Cosby once admitted his SAT total was 500 – implying an IQ under 100. He still managed massive wealth in entertainment.
In short, some billionaires are intellectual heavyweights, and some are not. The average IQ of billionaires is often cited around 130, but that figure is mostly from high achievers who made it in knowledge industries. Plenty of billionaires come from fields where academic smarts matter less (inheritances, natural resources, entertainment). The bottom line: do all billionaires have high IQ? Nope. There are geniuses and there are lucky public figures on that list.
A Mindset vs Genetic Intelligence
So if IQ is not the secret sauce, what does differ between a person in poverty and a person with wealth? It often boils down to mindset and habits. A famous question goes: “What mindset would you say differentiates the wealthy from the poor?” Think about it: wealthy people generally believe “I create my opportunities”, whereas someone struggling might think “The world owes me” or “I’m just unlucky.” Rich folks plan for problems, poor folks might see problems as insurmountable. Rich people learn from mistakes, others see mistakes as proof of failure.
Of course, this is not absolute; many rich folks start poor and vice versa. But countless money-success stories feature a turning-point mindset: embracing long-term goals, educating themselves about money, and being proactive. For example, investing even a small percentage regularly (thanks to compounding) versus spending every last penny today.
Actionable Steps: Grow Wealth No Matter Your IQ
Here’s the good news: You do not need genius-level IQ to get rich. You need smart habits. Every section above boils down to practical advice. Now let’s translate that into steps you can take today to improve your financial future.
• Set clear goals and budgets. Decide exactly what wealth means to you (e.g., “I want $1M by age 50” or “Debt-free home”). Break it into milestones. Then create a budget: track income and expenses each month. Even an average-IQ person can do this with apps or simple spreadsheets. The clarity forces you to save and prevents frivolous spending.
• Automate savings and investments. If you struggle with discipline, make it automatic. Have a portion of your salary go straight into savings or retirement accounts each pay period. You won’t “miss” what you never see. Over time, this builds your nest egg regardless of your IQ. As one expert sums: “Compounded interest works for the rich and against the poor.” By automating, you harness compound growth on each tiny deposit.
• Learn continually. Wealthy individuals often read books, follow markets or talk to financial advisors. You can do the same: read personal finance blogs (like this one!), take free online courses, or watch informative videos. The more you learn about investing, taxes, and money management, the better decisions you’ll make. Remember: even “book smarts” can be developed.
• Diversify income streams. Do not rely on a single paycheck. Consider a side gig, freelancing, or investing in index funds. Multiple streams give you a cushion and extra funds to invest. This habit often trumps IQ: a business-minded friend with modest grades may out-earn a genius who never works beyond their 9–5.
• Avoid bad debt; use good debt wisely. High-interest debt (credit cards, payday loans) is a wealth killer. Pay those off first. A high IQ won’t help you make money on debt if you’re paying 20% interest on it. Conversely, using debt for things like real estate investment (which can appreciate) can be powerful. Just be sure the debt decision is informed, not emotional.
• Network and seek mentors. Building wealth often involves connections. Talk to people who are where you want to be. Ask questions. Let’s say you’re an average-IQ engineer curious about investing; join a local investment club or seek a financial planner. Your IQ can be average, but connecting with a smart, experienced person can multiply your knowledge overnight.
• Adopt a long-term mindset. Resist “get-rich-quick” schemes. Real wealth typically grows slowly and steadily. So, when others are splurging, stick to your plan. Over decades, compound returns and patience beat short-term thinking. “Rich people think long-term,” as one financial coach says.
• Manage risk through planning. High IQ investors often do well, but even they get wiped out by big mistakes. Protect yourself: keep an emergency fund, insure wisely, diversify your portfolio. Being cautious doesn’t show weakness – it safeguards the wealth you do build.
Every step above is actionable. For instance, tonight you can download a budgeting app or understand budgeting for action plan or set up an automatic transfer to savings. Next week, read one finance article. In one year, see how those small actions have grown.
Must Read: The Psychology of Rich People: Beyond IQ and Inherited Wealth (with 4 Pillars)
FAQs (Frequently Asked Questions)
Q1 — Do you think there is a correlation between IQ and wealth?
Short answer: Yes, but weak and partial.
IQ and income are correlated to a degree — higher IQ often helps people get better-paying jobs — but IQ is only one ingredient. The relationship between IQ and wealth weakens when you move from income to actual net worth because saving, investing, risk-taking, inheritance, and behavior matter far more for accumulated wealth. In plain terms: IQ may help you earn; habits and opportunities help you keep and multiply what you earn.
Q2 — Does intelligence correlate with wealth or income?
It correlates modestly with income, but not strongly with long-term wealth. Studies show a measurable link between cognitive ability and salary progression, meaning How closely does salary track IQ? — fairly well at lower-to-middle income ranges. However, when you examine net worth (the real definition of wealth), does intelligence correlate with wealth? — the effect largely disappears because saving rate, investment choices, entrepreneurship, and inherited wealth play larger roles.
Q3 — How does IQ compare with emotional intelligence and mindset?
IQ is academic problem-solving. Emotional intelligence (EQ), delayed gratification, and the psychology of rich people — like persistence, planning, and risk management — are often more strongly linked to wealth accumulation. Put simply: a high IQ without financial discipline rarely builds wealth; decent IQ plus strong money habits often does.
Q4 — Are wealthy people more intelligent? Are billionaires smart?
General pattern: Wealthy groups can have higher average IQs than the general population, but this is not universal. So the question “Are wealthy people more intelligent?” is nuanced: many high earners and entrepreneurs are smart, but are billionaires smart? — many are, yet not all. Some billionaires have exceptional cognitive ability; others leverage networks, timing, or inheritance. Therefore, avoid the assumption that all billionaires have high IQ — it’s false.
Q5 — What is the average IQ of salaried workers, self-made millionaires, and billionaires?
• Average IQ of salaried: Most salaried workers fall around the population mean (around 100) with variation by profession.
• Average IQ of self-made millionaires: Self-made millionaires often test above average (estimates ~115–120), reflecting problem-solving and persistence.
• Average IQ of billionaires: Estimates vary; many lists suggest an average IQ of billionaires may cluster around 125–135, but that’s noisy and industry-dependent. The variation is large — some billionaires have average IQs but extraordinary execution.
(Use these numbers as directional context, not gospel — public datasets are imperfect.)
Q6 — Is there an IQ vs Inherited Wealth correlation with income?
Yes — inherited wealth can decouple income from IQ. If you inherit assets, your net worth may be high irrespective of your IQ. So the IQ vs Inherited Wealth Correlation with Income question shows that inheritance is a confounder: it raises wealth independent of intelligence.
Q7 — Does intelligence drive entrepreneurial success?
Intelligence helps in spotting opportunities and solving problems. But entrepreneurship depends more on perseverance, network, timing, and sales ability. Many successful founders have average IQs but excellent execution. So do all billionaires have high IQ? — no; many get wealthy through execution, timing, or market dominance.
Q8 — Would improving financial habits help someone with average IQ build wealth?
Absolutely. The single most consistent predictor of accumulating wealth is behavior: saving consistently, investing early, avoiding toxic debt, and learning about risk. That’s why What mindset would you say differentiates the wealthy from the poor? — the wealthy adopt long-term planning, habit-driven saving, and compounding-first thinking.
Q9 — How can readers use these insights immediately?
• Start with a budget and automate savings.
• Learn one investing concept per week.
• Build a 3–6 month emergency fund to take calculated risks.
• Diversify income streams (side hustle, investments).
These are practical steps that turn intelligence into measurable wealth.
Q10 — Should I worry if my IQ is average?
No. IQ and Wealth are not destiny. Average intelligence + consistent, well-informed action = outsized outcomes. Use your strengths (discipline, network, learning) to beat rigid IQ assumptions.
Takeaway: Your Wealth IQ is in Your Hands
In summary, IQ and Wealth are not locked in a one-way street. A mega-rich friend of mine once said: “My brain’s not a cash machine.” You won’t get deposits just for having a big brain. However, you can deposit effort and time into financial skills. Even if you never scored well on SATs, you can learn about money, make smart choices, and see your bank balance grow.
Don’t let average IQ of salaried workers hold you back. You have tools (like budgeting apps, low-cost index funds, and financial planners) that can compensate for any “lack of genius.” In fact, a determined person of normal smarts following these tips can outperform a genius who’s lazy with money.
Above all, remember: mindset matters as much as mind power. If you shift from thinking “I’m not smart enough” to “I’m smart enough to learn”, you have already passed a crucial milestone.
Every day is a chance to take immediate action: even depositing spare change into a savings app or reading a blog post (😉) is better than inaction. Your future rich self will thank you.
So, what will you do today to grow your wealth?
As we said in our last post about financial mindset, knowledge without action is just entertainment. Now that you’ve got the facts on IQ and wealth, do not just read – act. Your journey to prosperity starts with the next step.
👉 Loved this deep dive on IQ and Wealth? Then you will absolutely want to explore our previous post — Average IQ of Rich People: Wealth, Wisdom & Truth — where we uncover fascinating insights about how intelligence, mindset, and opportunity shape financial success.
