Being wealthy means having few wants and options on your terms when it comes to money.
To be wealthy means to have few wants, not many possessions that one day will end up owning you via maintenance.
To be wealthy means to understand that money is a tool, not an endgame.
Unfortunately, some people only learn the value of money after losing it all. How many times have we read about celebrities who lost every penny they earned? People like Nic Cage, Curt Schilling, and Kim Basinger have lost fortunes.
Maybe reading about such misfortune makes working people feel better about living working-class lives.
The typical American barely makes $48,700 a year. That is about a $930 weekly salary.
Working-class life is hard, but have you ever considered how difficult it is to be rich?
You can never know who to trust. People will always try to scam you. Rich people are lawsuit magnets.
And many financially illiterate millionaires lose every cent they make within a few years.
Let’s imagine that you are worth $2.6 million. The average American believes you need that much to be considered rich.
Here are four reasons why being a millionaire is a constant headache.
Trust Becomes a Precious Commodity
You truly know who your friends are when you have no money.
When you are a millionaire, you will never know who you can completely trust. Every relative and friend you have, no matter how close or distant, will hound you for money.
Complete strangers may beg you for money.
And you may have to pay professional consultants to vet every potential business partner you meet to mitigate scamming potential.
Trust could become more valuable than your money – unless you lose it all.
Losing It All
Many millionaires fall into a sudden fortune. Or they are so financially illiterate that they cannot maintain their fortunes long-term.
For example, the average lottery winner loses every dollar they win after three to five years.
Millionaires who start businesses go bankrupt because they don’t know what they are doing. And many millionaires go bankrupt indulging friends and relatives with gifts.
The only harder thing than getting rich is staying rich.
Instant Lawsuit Magnet
Get a good law firm on retainer if you ever become a millionaire.
Unless motivated by malice or stubbornness, working-class people are more likely to dismiss launching lawsuits since lawyers and the litigation process are so costly.
But rich people are more likely to be sued in a legal dispute when the other side realizes they are dealing with a rich person.
Insurance Journal published a study in 2012 that suggests that 40% of rich people think they were more likely to be sued in a tough economy.
And 80% said that just being rich made them constant targets of frivolous lawsuits.
The average rich person pays 15.8% in taxes.
But taxes for the rich can be as high as 37% if you don’t have a good accountant or tax attorney.
Make a Realistic Plan to Get Rich
Get out of debt. Save money. Live well below your means. Start a business based on local business markets that utilizes your skills or a good business strategy. Make smart investments and democratize your finances with apps like Robinhood.
If you are financially literate and responsible, getting rich won’t be the problem.
Staying rich after becoming a millionaire is the real struggle.
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