Being Rich Does Not
Always Mean You Are Wealthy
To be truly wealthy is to have money that lasts
forever. This may be a blunt statement, but suddenly
coming across a large sum of money does not
necessarily mean you have become a wealthy person.
To be wealthy is a state of mind. A person with a
wealthy mindset may not necessarily be financially
rich just yet but will be soon enough. On the other
hand, a rich person without a wealthy mindset will
squander the money very quickly.
This could not be more true than those who win the
lottery. After a few years, these lottery winners no
longer possess the millions they came across so
suddenly. An amount of money that should have lasted
for at least a generation has been fleeted away.
Case in point is UK lottery winner Michael Carroll
who won £10 million in 2002 at the age of 19. It is
reported that he had lost all his winnings 18 months
later on things such as holiday homes, luxury cars,
drugs, parties, jewelry and famously, a rural
mansion used none other than as a dodgem car
racetrack for his new friends.
What is even sadder are cases of other lottery
winners that end up with greater financial debt
after their windfalls dry up than they had to begin.
Some have even declared bankruptcy to be back where
they had started - with nothing.
From this, it is fair to say that being rich does
not necessarily mean you are wealthy. A truly
wealthy person would still possess the majority of
the millions of dollars (if not more) because a
wealthy person understands the fundamentals of how
to manage their money.
It can even be said that a wealthy person has a good
relationship with money. Money sticks with them
rather than repel away from them. It is through this
understanding of how to manage money that dictates
how long you will remain rich, or how soon you will
become rich.
A wealthy person knows to save their money. With the
money that is saved, they firstly spend on things
that earn them an income such as quality businesses,
real estate and shares. In other words, the money a
wealthy person retains is used to further create
more money. The money they earn from their
investments is then used to fund a rich lifestyle.
On the contrary, for a (temporarily) rich person
that does not have a wealthy mindset, they would
have chosen to firstly spend on material things and
eventually have no money left.
However, nobody is born with a wealthy mindset and
it certainly cannot be won. Importantly, a wealthy
mindset is learnt. If Michael Carroll had a wealthy
mindset when he won the lottery, he would likely
still be living very nicely with most of his
winnings intact.
If a wealthy individual were to lose all their money
today, it is likely that within a number of years,
they would be back to a relatively comfortable
financial position. Individuals such as Donald
Trump, Martha Stewart and Sir Richard Branson have
faced financial setbacks in their lives but were
able to rebuild their financial positions because
each has a wealthy mindset. These individuals
firstly focused on redeveloping their businesses
rather than wasting their remaining fortunes on
frivolous items and lifestyle decisions. Today, they
enjoy life's luxuries because of their wealthy
mindset.
Michael Carroll clearly demonstrates that being rich
does not always mean you are wealthy. On the other
hand, having a wealthy mindset certainly gives you a
greater chance at being rich because you understand
how to manage and appreciate money. Each of us can
learn to be wealthy. By developing this wealthy
mindset, you will ultimately attract more money to
you than repel it. Only then can you be rich and
truly wealthy.
Author Bio
Eugene Chan is the founder of
http://save-money-make-money.blogspot.com which
provides practical ideas to
save money everyday.
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