Do you think getting wealthy and staying wealthy are the same?
The answer is NO…Here is why
A Wealthy person is a person who possesses great material wealth, a person who is individual, mortal, etc., who focuses on long-term goals rather than making silly investments.
Okay, so, to differentiate, getting wealthy, and staying wealthy help you understand more clearly. Getting wealthy means having money that is more than enough for their expenses and bills for a lifetime, while Staying wealthy means having enough money that your next generation(s) can also take care of.
Everyone wants to be a millionaire. It is often to the point of obsession. The only mindset is to have more and more money and have a high status.
Getting money and keeping money are entirely unlike things and require a completely different mindset and approaches.
Most people think making money is more difficult compared to managing it. Studies have shown that an estimated 70 percent of people who receive a financial boon — a large amount of sudden money — won’t be left with any cash few years.
There are plentiful examples of many successful and rich people who become wealthy and lose it all in no time. These wealthy people make tons of money, earning is not an issue, but they also lose it in quick time, filing for multiple bankruptcies.
Why does it happen?
The main problem in some people’s path of getting rich is that they always spend more than they earn to get a high social status. They also make poor investments, spending on high ended cars, not creating a passive income, taking extreme leverage to make more significant investments, gambling, and taking unnecessary risks, or someone managing their money is spendthrift it or taking a more substantial share for himself over the top.
Whereas they can do the following things to stay wealthy: –
1. Cut your expenses. A simple living is more than enough.
2. Make investments wisely by investing in long-term funds.
3. Be an inventor and consider it as an opportunity to serve so that you have enough money that your next generation can depend on.
4. Stop spending on things that are not required. Like for example, UNBRANDED CLOTHES AND ITEMS. The only difference between unbranded tinned tomatoes and branded ones is the lack of salt and sugar, and you can add that yourself. Why pay loads extra for it?
Most fortune receivers end up buying liabilities dressed as assets; summer beach houses, High-end cars, and so on, which consumes expensive capital and has vast maintenance costs, and the “asset” depreciates over time. As they say, “wine is not an asset if you consume it as soon as you buy it.”
Wealthy people work hard to attain their goals by prohibiting most other activities. They avoid wasting time on worthless things like social media, and that’s because of their hope that time is money, and time wasted is money lost.
Instead of considering their annual incomes, the wealthy focus on how much they should be gain by service every hour – and how much money they would lose by captivating in tasks that don’t make money. This allows them to circumvent the time sinks that most non-wealthy people engage in regularly.
Everything in the economy is recurring. Nothing tremendous or awful is likely to stay that way for a long time because the same things that cause things to be great or terrible also plant the seeds to push them the other way.
For example, let’s take Rajat Gupta; in the greed of earning more money, he leaked the confidential information of Goldman Sachs and also of P&G (Procter and Gamble), where he revealed that Warren Buffet was going to invest $5B into Goldman Sachs, he passed on this information to his friend Raja Ratnam. He was jailed for two years in this case and also was on house arrest for six years. From this, we also get to know that anyone can become a billionaire. However, it may lead them to other dire circumstances if by way of illegal terms.
Bull markets make stocks expensive, expensive stocks leave little room for error, and little room for error increases the odds of bull markets ending — the same thing in the other direction. Downturns cause distrust. Distrust causes underproduction; underproduction leads to scarcity; scarcity leads to a new boom.
A paycheck is not the same thing as wealth. Those who earn a high income give themselves a better chance of becoming rich, but there is far more temptation to inject extreme lifestyle inflation into the mix when you reach a bigger salary. The difference between how much you are making and how much you are spending is often a competition between ego and humility.
Money doesn’t solve every problem, but it’s often an indication of zeal, capability, and drive in those who have obtained it. Try absorbing these approaches into your daily living and working routines and putting yourself in a position to increase your richness, both in money and life.
I would like to end up by saying,
“Wealthy people stay rich by living like they are broke and poor people stay poor by living like they are wealthy.”