No, making more money is not enough to get rich. why is that. | Author: Razvan Tomegea | The Capital | June 2021


“I can’t afford a hyena.”

photographer Sharon McCutchen on No splash

Originally posted on Lifemaniacs.com

DDid you know that in the long run, those who have suffered a serious accident that affect their health throughout their lives are happier than lottery winners? [1]? Not to mention the suicide rate.

Also, did you know? Lottery winners finally went bankrupt? This is the root cause of their pain.

The point of this article is to allow you to change your view of wealth. Believing that making more money will make you richer is counterintuitive to some extent.

In S01:E14 of “Two and a half men”, Charlie went bankrupt. His accountant was trying to explain to him how this happened because Charlie was shocked. He gave a very intuitive explanation.

He compared cash flow to water poured in a plastic cup with a hole at the bottom.

When water enters the cup faster than it flows out, the cup will remain full for a period of time even if the water stops flowing. Of course, this can happen if the hole is only one and not too large.

In Charlie’s case, there are ten holes in the bottom of his cup. Once the water stops flowing in, there is no more water in the cup.

The analogy is simple: If you spend more than you earn, you will always be poor.

If the balance in your wallet or bank account is zero or negative at the end of each month, then you are spending too much. You will not even realize this, but you will think that your income is not enough.

Suppose you did find a solution to make more money, and you succeeded. Do you think it will solve the root cause of your case? In most cases, it will not, because your mentality is the same.

The real problem is that you have a consumer mindset. When you have more, you think you can afford more. As a result, you spend more.

If you change your mindset from a consumer to an investor, you will realize that you are spending too much on debt rather than on assets.

In addition, you will see that more money is equivalent to saving more money for possible investments, rather than spending more on things you don’t need.

I get it. You are already cutting expenses at least because you are not so lucky. In your case, the solution is simply to increase your income.

However, there is a problem with this exception. If you want to make more money, you may have the urge to make up for the lack of wealth these years.

The above example is what happened to me. I make more money than I need, but I still borrow money from others from time to time. Fortunately, I realized my problems and resolved them in due course.

If you are struggling for money, check your expenses first before trying to earn more.

  • Check your bill: Are you wasting electricity, water, gas, etc.?
  • Check your means of transportation: can you walk or take a bus instead of a car?
  • Check your subscription: Do you need Netflix, Spotify, YouTube Premium, Amazon Prime, etc.?
  • Check your shopping: Do you need new clothes, new accessories, new equipment, etc.?

The list continues, but all in all, adopt a simple lifestyle. Think twice before clicking the buy button.

pointnewzz

Leave a Reply

Your email address will not be published. Required fields are marked *