There is plenty of motivation and advice for people who want to get rich. It is mostly about working hard, investing well, and trying not to buy expensive cars or renting high-end apartments.
It’s also true that most people want to get rich—those who say they don’t probably are lying. For the great majority of people, there is no such thing as too much money. Even if you’re already rich, you want to get richer.
What people tend to neglect is how to stay rich. Of course, this only works if your field is something boring, like venture capitalism or real estate. If your ticket to riches is a one-time thing like lottery then you’ve naturally got to hold on to that money. You might never see so much again.
That’s not the only mistake that the new rich make, here are other mistakes:
1. Not Protecting the Money
Before you move to a better neighbourhood, ask yourself: How safe is your newfound fortune?
Where do you keep it? If you keep it a bank, the interest barely keeps ahead of inflation?
If this is the only big money you’re ever going to make, you’ll want to keep it safe. That means not putting it all in one place where it could be lost or seized. At the same time, you’ll also want to make your money work for you.
That means investing it in ways that give you as much profit as possible, while still keeping the risk down to a comfortable level.
Even if you get your money from a high-paying job, that’s no reason to be complacent. No career lasts forever.
2. Living Large
Brand-new millionaires are known to soon becoming as broke as ever, possibly even deeply in debt. It’s like they say: A fool and his money throw an awesome party.
Lottery winners are notorious for this. Not only do they fail to lock in the money supply, but they also spend far more than they can actually afford.
The problem is that people didn’t really evolve to deal with large numbers, or money. And faced with more money than they’ve ever seen, the average person loses all sense of proportion.
3. Living Loud
Just because it’s more money than you’ve ever seen in your life, that doesn’t mean it will never get finished. That one windfall may have made you rich, but money is like any material good: it requires protection and upkeep.
If a car requires a garage and regular tune-ups, then a fortune requires investing and managing. That’s why the newly-rich need certain people in their lives—financial advisers, accountants, and lawyers. What they don’t need are people to help spend their money.
4. Social Climbing
There’s a certain breed of newly rich people who practice conspicuous consumption not for fun, but for status.
Such people spend much of their time throwing parties, going to parties, and associating with as many important people as possible. Social climbers will name-drop, buy the latest stuff, and promote themselves at every opportunity. And, like in the old joke, they’ll even sabotage other social climbers. Whatever it takes to be famous.
The irony is that the truly wealthy don’t care much for status. The only ones who do are those who feel that they lack it—other social climbers. In their minds they’re still stuck in the trailer park, and by God they’re going to claw their way out of it.
5. Spending Wrong
Old money (people who’ve always been rich) look down on new money (newly rich people), and not just because new money is reckless, it’s also because new money often does nothing positive with its newfound wealth.
We’re not saying you should devote yourself to feeding the hungry, although that would be awesome. Nobody’s asking you to solve all the world’s problems, either. That’s not your job, and in any case it’s too big for one person.
Maybe you don’t believe in charity. That’s cool. It’s your money, and presumably you earned it. Maybe nobody ever gave you a break, so you feel nobody’s entitled to one, least of all from you. Plenty of self-made men have that philosophy, and discussing that philosophy would take another article.
At the very least, you could improve yourself. Go back to school. Hire a personal trainer. Travel, and not just for the exotic women.
You’re rich. You can do so many things.
Source: Unclewades.com
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