Who want’s to be a Millionaire? Most people probably. But is being a Millionaire a bank balance or a state of mind? Recent studies into the wealth of Lottery winners shows that after an average of 5 years most are back to being broke or worse. Could this be due to a lack of mental preparation for sudden riches? It could well be.
What differentiates the Lottery winner from the Entrepreneur who is a millionaire? The answer is the ‘millionaire mindset’. The mental toughness that comes with years of trying to succeed in business seems to be an insulator from the various forces which act upon the millionaire like:
• Family and friends that keep asking for money
• Con artists that would extort money
• Tax bills
It would seem that lottery winners and unseasoned recipients of cash windfalls don’t have the life experience to deal with having large sums of money and are more likely to lose it due to inexperience and a lack of financial education. So what are constituent parts of the millionaire mind?
It appears that, the seasoned millionaires determination to get rich is the same thing that makes them want to stay rich. They know that as they become rich they are more likely to be approached by those after one thing and so take steps to hedge their wealth. Satta Some see this as being a Scrooge like attention to protection, but it seems that the ‘Pratchets’ of this world, as nice as they are, aren’t the ones who stay rich.
Could it be that millionaire entrepreneurs tend to understand money and also tax? Millionaires tend to have an understanding of cash flow, Income statements and balance sheets. The unseasoned rich don’t and so are more likely to buy liabilities rather than assets and get hit with unforeseen tax bills and runaway expenses.
It comes as no surprise that the seasoned millionaire spends a lot of time investigating other business ventures that can generate income to the cash-flow, and assets to the balance sheet. But the lottery winner is less likely and less equipped to assess ventures that could multiply their wealth.
And so to summarize. Anecdotal evidence suggests that money is a magnifier. It magnifies who you are. So if a person has certain traits and habits which kept them poor before they won the lottery, those traits will be accelerated after they have won the lottery. But on the other hand, the seasoned rich – through trial error, fortune and calamity, have developed the millionaire mindset.
As Online Marketers seeking success in the internet, gaining the millionaire mindset should be one of our top most goals. A good book to read to help with this is the book by T.Harv Ecker called The Millionaire Mind and published by Piatkus.