Rich Friends Poor Friends

Does hanging around with rich friends beget a larger bank account? Would hanging around with less-fortunate friends mean your chances at building significant wealth are lower?

Surrounding yourself with rich friends is a well-known strategy for making more money.

Rich Friends Poor Friends

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According to Hugh Lauder of the University of Bath, Chetty’s research is a call to ensure schools are well-mixed in terms of socioeconomic background.

A Rich Vein of Study

There’s just one snag with the strategy of having richer friends, especially in childhood. I’ll illustrate it via a slightly stylized story about an ex-girlfriend.

Big Fish, Small Pond

My ex – let’s call her Catherine – is a talented violin player. Catherine enjoyed being the lead violinist in her school orchestra. But she knew she could push her talent further than her school could take her. 

Catherine’s teacher agreed she was being held back. He arranged for her to go to weekend classes in London at a fairly prestigious music school.

To cut a long story short, they were indeed better than her – and she didn’t like it one bit. No longer was Catherine the biggest fish in a small pond.

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