How To Stay Rich? Not Everyone Can Do It.
Updated: May 4
Most people are either born rich or gain their wealth over time. The majority of them lose their wealth equally fast. Would you like to go from being a king to being a slave or build up from a slave to a king? If you chose the latter, here are a few tips on how to build your wealth and continue remaining wealthy.
While all our previous work was dedicated to wealth building and getting rich this one tells a different story. You took all the right steps, you finally achieved what you always wanted, or you are one of them who was born rich and inherited the wealth. Now what? how to stay rich and preserve all those riches.
You could be the most successful genius and earn loads of money but if you lose control of your emotions and forget how to manage money well during those times, you will lose all that you have made until that very moment. Whereas, ordinary folks with no financial skills could do a better job of saving money because of their money-related behavioural skills.
The Path To Riches
Firstly, always know your goalpost and keep yourself maintained at that level, don’t compare yourself to other people that are wealthier than you because someone will always be better. Learn to be satisfied and happy with comparing yourself to the past version of yourself. Do not become so greedy to earn money that you lose your sense of sanity. If you go past this particular point, an insatiable appetite for more, that will push you to the point of regret. People end up losing all that they have in the mindless need of achieving more. Some things matter more, that aren’t worth risking. What I mean to say by this is that if earning more money causes you to lose your family or friends who were there with you throughout your times of need is not worth it. Also freedom and independence are invaluable, so if earning more money means losing either of these, it’s not going to be worth it.
Compounding Power of Money
The most important part of earning money is to remember it is not a one-day lottery. It takes time to earn money, so believe in the power of compounding. Warren Buffet, whose net worth is 117 billion dollars currently, has earned most of his money after his mid-60s after qualifying for social security. 84.2 billion dollars was accumulated after his 50th birthday. He started investing at the age of 10. Imagine the power of compounding! Money isn’t about earning the highest returns, it’s about earning good returns for a long time. Another factor affecting wealth is luck. A person who invested just before great inflation of 1970s in the market has suffered with no fault in their investments. Whereas a person who invested in stable times will never know what is it like to invest in something whose prices fall soon after.
Most people handle their wealth based on how they grew up. People with a lot of money don’t mind taking risks to earn more, while the people who grew up poor, think of 10 million ways something could go wrong. More than your salary, house and materialistic things, control your daily activities. Having control over your time is more helpful. This will even help you have a more positive outlook on life, which in turn will motivate you to do better.
Invest in Assets
My next point is, to go after assets, not liabilities. Invest in things that will raise your net worth. Robert Kiyosaki speaks elaborately on assets and liabilities in his book Rich dad: poor dad a must-read for you Even though you like nice cars, drive what you find comfortable, not what fits your worth. As soon as you buy a car, its worth decreases by 10% and in the next five years or so, it decreases by 50% of the original value. Is this a smart investment? No, not really. It would be much smarter to buy a used car which hasn’t been driven much, for a lesser price. If you just want to show off your wealth with the use of your expensive car let me tell you something. When we see an expensive car drive by, do we see the car or do we praise the person sitting inside? We see the car, not the person! So if your aim was just to show off your wealth, don’t be mistaken. No one is seeing you inside your hard-earned nice expensive car. They are just imagining themselves looking cool driving the car that YOU worked so hard to afford.
Don’t Just Look Rich, BE Rich!
Earning money to show other people your wealth is the fastest approach to losing all your wealth as a society will never be satisfied. It is you who has to learn to distinguish between more and enough. Don’t let society fool you into thinking about what is wrong or right to look rich. Many people own huge houses or cars on credit, not debit. Therefore, achieving the goals set by you should be your highest priority and pride. Keep working to achieve your dreams!