About 9 years back I had met a really really successful entrepreneur. He was over the top when it came to spending money. I asked how are you going to sustain this type of spending, you will be broke in a decade. He had made so much money that he told me it doesnt matter what my kids and I spend it will never run out, its going to last for a very long time. I personally have seen many entrepreneurs make millions mis manage it and end up becoming broke so I cautioned him to curb the spending invest the money live within the means of what the investments produced. Eventually he can spend as much as he wants because it will compound and build up to provide more liquidity. He laughed at my advice. His kids were the type that used to take a helicopter go shopping to go to the washroom, to see friends, and go partying. His daughter would buy entire departments of clothing and rarely wear the merchandise. His son would buy a dozen cars and crash half of them. His wife would buy jewelry by the million and gift it to people. All the while he kept working and working to support their lavish lifestyles. I ran into this guy a few weeks back. I hadnt seen him in 9 years. I was shocked to find that he went from being a hundred millionaire to being a simple millionaire. And in debt to banks many more millions. His businesses were declining and he sold them at a loss. He plundered squandered and spent hundreds of millions on liabilities. He told me Com you were just a kid back then so I didnt heed your advice but gosh if I had listened to you then I wouldnt be in this mess today! Ive since accomplished what he did financially and he went to where I once was financially. Talk about trading places! I cannot stress this enough, its not the money you make that gives freedom, its the money you invest! A very small percentage of people manage the worlds wealth. And a very large percentage of people waste the worlds wealth. If you ever want money to be a really good slave you need to learn how to invest it properly. Otherwise money will always be your master and you will be the slave! So remember to start investing your money, dont buy cars and gadgets and widgets buy real estate, make angel investments, create partnerships, and only when all those seeds you planted begin to bear fruit in abundance should you indulge in luxuries. Unless and until your investments grow and produce real returns consistently you should never try to live a luxury lifestyle. It wont last nearly as long as you think it will. Im driven to invest my money instead of spending 100k a year at the clubs and bars. Thats just stupidity. Be smart you only get one or two shots at this money game before you lose opportunities to people who manage things better than you. #theartofdreamchasing #thefailureshow #moneymanagement #billionairediaries #invest #grow #compound #liquidity #dreamchasingfamily #thinkbeforeyouspend #investedmoneyisfreedom
Posted on: Tue, 01 Apr 2014 10:33:41 +0000
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