To get truly rich, is to have wealth that lasts forever. This might be a blatant statement, but suddenly coming across a large amount of money does not necessarily mean you have become a rich person.
To be rich is a perspective. A person with a rich mindset, would possibly not necessarily be financially rich. On the other hand, a wealthy person without a rich mindset will squander money very quickly.
This could not be more true than those who win the lottery. After just a few of years, these lottery winners no longer have the millions. An amount of money that should have lasted for at least a generation has been wasted.
Case in point, British lottery winner Michael Carroll, won £10 million in 2002 at age 19. It is reported that he had lost all his winnings less than 2 years later, on things as holiday homes, luxury cars, drugs, parties, jewellery and famously, a rural mansion used the one and only time as a bumper car racetrack intended 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 start. Some have even declared bankruptcy for being back where they had started out – with nothing.
It is fair to say that being “rich” won’t necessarily make you prosperous. A truly rich person would still possess most of the millions of dollars (if not more).
It could be said, that a rich person has a good relationship with money. Money sticks with them, rather than fleeing. It is through this knowledge of how to manage money that dictates how long you will remain rich, or how soon you may become poor.
A wealthy person knows to save their money. With the money that’s saved, they firstly spend on things that earn them an income; for instance, quality businesses, real estate, along with shares of stock. In other words, the money a wealthy person retains, can be used to further create more wealth. The money they earn from other investments is then used to advance a rich lifestyle.
On the contrary, for a (temporarily) rich person that doesn’t have a wealthy mindset, they might have chosen to firstly invest in material things, and eventually, haven’t any money left.
However, nobody is born with a wealthy mindset, and it certainly cannot be won. Essentially, a wealthy mindset is discovered. If Michael Carroll had some sort of wealthy mindset when he earned the lottery, he would likely nevertheless be living very nicely with nearly all of his winnings intact.
If a wealthy individual were to lose all their money today, it is likely that within a few years, they would be back to a relatively comfortable financial position. For instance, Donald Trump, Martha Stewart and Sir Rich Branson have faced financial difficulties in their lives but made it possible to rebuild their financial positions, because each carries a wealthy mindset. These individuals firstly focused on redeveloping their businesses as opposed to wasting their remaining fortunes on frivolous items and lifestyle choices. Today, they enjoy life’s luxuries because of the wealthy mindset.