Things about being wealthy
I am often asked what is it to be wealthy that most people don’t know much about.
Well here are some facts that may surprise you and that you may or may not have imagined along with some tips as to how to best deal with it.
1. Being wealthy is an incredibly isolating experience. What I mean by that is you can’t really complain about your problems except within your small circle of rich friends. Otherwise, you will sound like an asshole. Even if you do, non-rich people can’t really empathize with you. There are a few other problems associated with being rich such as family/friends asking for money, unexpected jealous reaction from friends/family, pressure to deal with more complex tax, estate planning and investment planning, etc… The joy of “set for life” doesn’t seem to offset the anxiety from hoarding the huge sum of money. In addition, when you don’t work because you are rich but can’t hang out with your friends who have to work during the week, you feel like an outcast of society. Best way to deal with it? Stay focused, keep working at what you do best – Work is healthy – and enjoy what you have with people you carefully selected and feel comfortable with.
2. Always remember… Real “wealth” is getting into a situation where you have passive income every month, meaning you do nothing and get a check cut to you every month. The sooner you get there the better. It’s better to have the money than not, but like anything else that’s new, it can take some time to adapt and put it in the proper perspective. Like beauty, wealth is in the eye of the beholder. So start getting versed with the process of becoming wealthy as of today…. before getting there and losing your mind not knowing how to handle it and blowing it all.
3. If you sometimes feel like “risking it all” on a new venture with your own money, don’t. Be smart. Once you got the cash, if you want risky, go sailing/ocean racing, jump off a mountain top with two sticks attached to your feet, buy a glider, or buy a race car and go to the track… In short, do anything that takes care of the fix. Risk taking is an emotional condition. If you repress your emotions you pervert them. Find a “sane” outlet. Not good: gambling, fast women, fast cars on public roads; throwing alcohol into the mix makes for a great Molotov Cocktail. If you like open air fire making go camping in bear territory. Possibly in Alaska. Live life to the fullest but within your means…and when confronted with the choice of leaving your lifestyle for more time or maintaining your lifestyle with the current free time you have make sure you always choose the latter.
4. What you thought would make you rich ends up being merely affluent. To be ‘Rich’, estimate 3x-5x that. For really rich, 20-30x that. This is more prevailing than ever today … in an age of increased fraud, regulation and taxation.
5. You will shift from worrying about how you will ‘get’ the money you need to how you will ‘keep’ the money you need. You will also learn quickly that professional advice (legal, financial, tax) is very expensive, and not always worth what you pay for it. It just means more assets to worry about, but no substantive enlargement of joy of peace in your day-to-day life. The only plus is an increase in the ability to support organizations or people who are doing amazing humanitarian work for a living.
6. There is always someone richer than you. And compared to them, you’re still a pauper. Most of the wealthiest people know best and stay humble.
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