Bobby is so right. In an exclusive video call for miners of TEXITcoin, he said that our biggest problem is that everyone is not quite prepared to become wealthy.
Most lottery winners are not better off after winning the lottery. It would be wise to study how and why they fail. Not only are they not better off, in most cases, their lives become worse. We have to plan ahead to avoid those common errors.
The top two things to do with money are!
- Do not talk about your wealth. If you violate this rule, it will come back to haunt you. You become a target of all sorts of money grubbers, from beggars to thieves, and they will disguise themselves as friends and helpers until they get what they want. Also, you may find yourself ensnared in many lawsuits as people will start suing you for money. It costs nothing to sue people. They can’t sue you, if they don’t know about your wealth. If you bragged about being wealthy, that was your first mistake.
- Don’t start living as if you are wealthy. You are not, and you won’t be. Most lottery winners greatly overestimate their wealth. A million dollars is just not that much money anymore. A hundred years ago, there was this thing called a “millionaire”. But the money has lost 99% of its value. You now need $100 million to be like a “millionaire”. One million is almost nothing. Have you seen the cost of housing? A lot of semi-nice homes go for $5 million. Mansions go for $30 million.
These two rules tie in to each other. Don’t buy a showy expensive watch or suit or car. All showy displays of wealth and excess spending violate both rules, as they tell other people you are wealthy.
Demonstrating to others that you are wealthy is stupid, and vanity and makes you a worse person, because it fuels your pride, one of the worst of all sins.
Wealth exists primarily for these things:
- Reinvesting the money into other investments to continually grow your money.
- Providing you time to continue your education, develop a skill, and/or improve your earnings potential. Anytime you are earning more, in general, you are helping humanity.
- Providing a comfortable retirement so you can live a few extra years at the end of your life. Even this is paradoxical. If you stop challenging your brain and body, and seek too much comfort it shortens your life. Use it, or lose it, is the principle. My dad retired early, and died early, and that is common.
- Leaving an inheritance for your children, and grandchildren.
Of these 4 things, the first is the hardest, and most important. Good investments are difficult to find. It takes time. To have that time, you need to avoid breaking rules number one and two. You cannot preserve and grow wealth if it is spent or stolen. Again, if it is spent or stolen, it’s gone forever. If you continue to maintain a frugal and simple lifestyle, and save your money, it buys you the necessary time to seek out and find and learn about other investment opportunities.
There are great books that can help.
- The Bible.
- Reminiscences of a Stock Operator
- The Millionaire Next Door
Finally, TEXITcoin itself is probably one of the best investment opportunities I have ever discovered in my lifetime. And I have found and invested in 7 stocks that went up by about ten times, say, from $1 to $10/share. I am 54. I once had money, and I lost it, in part, by violating rule number one. I won’t make the same mistake. People are brutal. And I have learned my lessons. I can only hope.