We all heard about average people who win millions in the Lottery ending up poorer within three years of their wins than they were was before winning the lottery. Why is that? What is the solution?
We read in Fortune Magazine, “Indeed, the Certified Financial Planner Board of Standards says nearly a third of lottery winners declare bankruptcy—meaning they were worse off than before they became rich. Other studies show that lottery winners frequently become estranged from family and friends, and incur a greater incidence of depression, drug and alcohol abuse, divorce, and suicide than the average American.”
These are people who never learnt to manage money before their windfall, and, never having had to deal with such a large amount before, they didn’t know how to handle it. Also, they didn’t understand what all self-made wealthy people know: that we have to make our money work for us.
George Clason published a series of pamphlets in 1926, written in parables set in the ancient city of Babylon. The book, The Richest Man in Babylon, is a classic in financial literature.
I love this lesson: Make thy gold multiply. (Make your money work for you and grow). He writes, ” …put each coin to work so that it may reproduce its kind even as the flocks of the field and help bring to you more income, a stream of wealth that will flow constantly into your purse. Do not eat the children of thy savings; send them out to work for thee.”
Having experienced this, I know that, with the correct systems, you can make your money work for you, instead of running out of money over time. This is especially true for elderly people. The Chinese proverb, “Dig the well before you thirst,” tells us all we need to know about the importance of building a Money Machine. I’m not talking about stocks and bonds or mutual funds here, but about business.
This book contains timeless lessons that many of our grandparents learnt from and became wealthy as a result, and in my opinion, this lesson is the most important one. Listen to the audio version of the book here. I can show you how to do this.