“ In the world of AI, I try to write myself “
Hear me out, before you judge me. For a long time I thought that if somebody is born in a rich family, he has nothing to worry about. After all he/she doesn’t have to work hard to get rich.
But What exactly is being Rich?
Is it to Earn heavy money? But how much is heavy money. 1 lakh, 1 million, 100 million. The definition is different person to person.
The truth is, Wealthy/Riches equation has two parts. Most of us focuses on the 1st part only. And thus we end up broke again and again.
It’s a combination of these two
Getting Rich
Staying Rich
Nothing else .
Most of us are aware of the first part. Get rich or Get rich quickly. But it's the second piece of the puzzle which makes all the sense. Or rather the reality.
Let me tell you a tale, you may or may or may not have heard. It goes like this,
Every Third/Fourth generation goes through a cycle like this
One poor generation works hard to meet the means & start something big-> The second generation becomes wealthy -> The third generation tries to continue success but starts falling -> The fourth generation goes back to being poor.
Round and round we go back in circles.
The reason is because the third generation & fourth lacks the second skill. They see money coming in and thus they become quite lavish in their lifestyle. So much so that they don’t realize that they are heading towards an iceberg. (Titanic Reference)
So now the question is how to avoid that.
If optimism is considered the root to get Rich,
Then pessimism is the root to being staying wealthy
There is no rocket science that staying wealthy requires a bit of paranoia. That something may go wrong eventually and thus we should be really prepared for it.
And the best way to implement this is via safety checks. Some of those can be
Making an emergency fund account. (6 months or more equivalent )
Depositing a 10% or 20% in a separate account every time you receive a pay check
Investing in portfolios that do not let you take out money before 5 years
Going for some sort of insurance policies
Sky is the limit
Be frugal about your purchases
So to recap, if you want to be wealthy, focus on staying wealthy as well. Not just getting wealthy