Iowa a magical state which goes by many names. “The Big Apple,” “Tinsel Town,” “Capital Of The World.” A place where millions flock each year, hoping to make it big and live the high-life.

Sarcasm aside, Iowa is one of those states most people don’t think about.

Which is why I want to write about it in today’s article. Specifically, how most Iowans become millionaires.

This might sound a little weird, but Iowa actually ranks 21st in states for household earnings. Higher than Florida or Texas. Additionally, the state has a lower poverty rate than New York or California.

So what makes people successful in this landlocked agrarian state?

Let’s take a look.

1. Being Practical

This is a pretty boring but incredibly consistent way to grow your money.

A lot of Iowans end up millionaires off basic financial common sense. Honestly, it’s rare to meet someone over 40 who isn’t worth at least $1 million from following this route.

Since the state really doesn’t have a high-end scene, saving money is easy.

Likewise, there isn’t much of a status culture either. So you’ll encounter lots of “Millionaire Next Door” types. These are people with a traditionally high-profile job (lawyer, private accountant, etc) who wear regular clothing brands or drive a Toyota. Otherwise they own a successful business, but aren’t flashy about it.

Or, they have a job most people never think about (like welder: average pay of $25/hour) and just spend responsibly.

As a teenager, it never occurred to me that many of the adults in our town were rich.

They wore regular clothes from Sears or a Timex watch, and it really never crossed my mind that they had money.

Being financially responsible isn’t super exciting, but it’s a fairly low-stress and conventional path to wealth.

2. Investing

Most Iowans (that I know) really don’t invest in stocks. Instead, they buy land. Usually fields, which they then rent out to farmers.

This is slightly cheaper than traditional real estate, but the returns are almost as good.

On average, one acre of farm land costs about $7,000. That same acre (on average) rents for about $250. So a $700,000 investment yields $25,000 per year.

In terms of quantity, you’re getting a lot of ground for your money.

I remember when my parents first moved to the state in 2008. My Dad sold our home in Illinois right before the market crash, and the money from that bought a house plus ~100 acres of farmland.

A single house (in a market which is still depressed) costs as much as vast swaths of land one state over.

If you’re buying property like this to hold forever, you’re getting a steady passive income for life. Farmers grew corn in Iowa in 1918 and they continue growing it to this day.

3. Owing A “High ROI” Service Business

Years ago I met two brothers who started a sheep shearing business while in high school.

They’d go to farms, charge some nominal fee (like $2.50 per sheep), and then keep all the wool. Why? Because wool is worth about $2 – $4 per pound, and the average sheep carries 20 – 40 pounds of wool.

So you’re gaining $40 – $160 in goods for 10 minutes worth of work.

Both those guys became multi-millionaires before age 40.

A lot of other people have similar high ROI service businesses. These are things where you’re technically trading time for money, but you’re charging a premium rate.

Lawn service is another Iowa classic. People will do cut the grass for businesses, or maintain the local cemetery. Stuff like that.

I remember being 16 and getting my first windfall payday ($212 for a long day’s work) from helping a guy who did “controlled burns.”

He’d start manageable fires on people’s property to burn out any underbrush.

Not the most prestigious job (it’s hot, uncomfortable, and you have to wear a mask), but Google tells me you earn an average of $78.13 per acre burned. So burning 30 acres a day nets $2,343.90.

These aren’t passive income businesses, which everyone likes to your online, but the payouts really negate this.

Closing Thoughts

The Internet often treats success as a series as absolute memes and clichés which must be followed. Things like flipping houses, day trading BitCoin, running an ambiguous Internet business (bonus for comparing your scrappy operation to Amazon or Facebook).

But there are also a ton of boring and overlooked pathways to success.

Mowing lawns is recurring business (grass does grow back).

Buying utilitarian land is a pretty safe bet when it comes to investing.

And, if you have a simple business with a high profit margin, who cares if it’s passive?