I think this is very interesting. I meet a lot people in this business who can’t wait to spend their bonus every month. Some can’t even live without spending it. Some plan ahead before their bonus comes how they are going to spend it. Well always remember what Robert T. Kiyosaki said: With every dollar you earn you can decide to be poor, middle class or rich. Here is another thing i got from Adam Khoo’s book.
Many people have the wrong idea about what being a millionaire is all about. Many also equate instant gratification with happiness. They believe that millionaires live lavish lifestyles and all that self-indulgence brings lasting happiness. Well, from my research and my own observations of the the many self-made, sustainable millionaires DO NOT live this way. What does sustainable mean? It means a person whose millions of dollars will last a lifetime and not just a couple of years.
So, if self-made sustainable millionaires do not live this way then who are the people who do? Those who tend to live lavish lifestyle tend to fall into the following categories….
1. The False Rich
These are usually made up of professionals and corporate executives who earns a high income, but who spend just as much. They are the ones who drive the latest luxury cars, fly first class and dine at the finest restaurants. They appear rich and successful. However, the sad truth is that they are poor accumulators of wealth who have few positive cash flow assets. They roll their credit cards and have huge credit lines. Their bankers love them. As a result, they are usually just one to two paychecks away from being broke.
2. Those Who Inherited their Millions
Those are a bunch of lucky bums who did not have to break into sweat to earn their money. Such instant millionaires usually do not understand the value of money, as they never had to slog for their millions. And, as a result, they spend like there is no tomorrow. This is why it has been proven time and again that inherited wealth never last past the third generation.
Those who strike lottery also fall into this category. Because it was pure luck and not financial intelligence that thrust wealth on them, most of them tend to lost it all within a few years, and end up deeper in debt than ever before.
3. Highly Talented Celebrities
These are the ones who earned their millions not because of their financial intelligence but because they were blessed with a spectacular talent in singing, acting or sports.
Some sad examples are Mike Tyson, MC Hammer and Michael Jackson. Mike Tyson earned over $500 Million over a few short years as the undisputed heavyweight champion. Because of his lavish lifestyle of luxury cars, huge mansions, and Bengal Tigers, he ended up filing for bankruptcy. POP star MC Hammer who sang the hit single “You can’t touch this (maybe he meant his money)” made over $33 Million in his career, but he too filed for bankruptcy.
King of Pop Michael Jackson earned over $700 Million in his illustrious career. How ever during his molestation trial, his accountant testified that he spent $20-$30 million more than he earns every year, took loans of more than $425 million and is facing a severe crunch, causing him to default on his loan payment.
Now it’s unlikely that anyone reading this is in the celebrity or inherited wealth category but if you just happen to be, then know that like all self made sustainable millionaires, if you want your wealth to last a lifetime, then you must master the way to make your millions.
