He built his shop over a 10-year stretch. Someone is going to judge him for spending US$180k on a “depreciating asset” and he is going to laugh.
I flew to visit for the weekend and discuss business. He picked me up at the airport in a Kia Soul and drove me to his house.
No Range Rovers, etc.
I was shown my room and the next day we sat on the verandah to chat about life and money. This is when I got the real knowledge...
The patriarch said that he enjoyed fancy things every now and then but happiness didn’t come from things.
He was showing up at the office with a car fancier than the boss and the son of the boss. The billionaire family. 🧐
The wife of the worker eventually lost her job and they couldn’t maintain the lifestyle.
However, it is only HALF of the equation.
You are also supposed to INCREASE your means.
Education is not only formal and the informal education is probably more valuable if you ask any successful entrepreneur or business owner.
They teach their kids to think bigger, persevere, treat people with respect, don’t judge.
I respect their work ethic and don’t suppose to tell them how to spend their money.
He approached a successful single digit millionaire for an investment into his fund - US$250k to manage for him...
It was a basic watch and a Japanese car. He said that he was just starting out the firm but had done well at a small scale with money from his professors.
This is a true story.
That’s life. You have nothing to prove to them. Just do you.
He showed up in a Maserati Quattroporte and was wearing a fancy watch. The guy invested more than the US$300k.
Image matters too much to some people but it’s life.
Hollywood has us believing they all wear fancy watches, drive a ton of fancy cars, have huge houses and dress fancy.
We also believe they invest differently
His wife lived in a mansion in California, Berkshire had a private jet for Buffett to use and so forth.
Bill Gates is his great friend and you can Google his house
We were told to play.
I kept betting whatever I won so when I won the first $100, I left it there and bet $200. My colleagues would take their chips off the table and only bet the $100.
I tried to explain that you didn’t have it before and you were quite fine and they should take a little risk, especially since it wasn’t even real money!
A colleague was showing off to people how well I did and he asked me how I did it - “I kept betting what I won, when I won”
The wealthiest people I meet have an Abundance Mindset - they want to sow more seeds.
If you save everything from Crop 1 and never re-invest then you only reap once.
You have to invest in the next crop and it can be bigger if you reinvest more
Either way it’s their money to spend as they like. I never assume that they are being less than smart with their money.
It was my dream car then and I got to experience it. My life insurance policy was always going to take care of fam
Buy memories that YOU will enjoy. That could mean a bunch of cars, houses, donating to charity, paying for school exams for a bunch of kids, whatever makes YOU happy
They are not talking about other people.
Then figure out which how much you need to invest to have your passive income pay for it. Then figure out how to EARN that money.
- private jets
- fancy suits
- expensive handbags
They also spend a ton of money on luxury travel.
Not everything pays a financial dividend. A happiness dividend is just as good.
Tell them to think bigger and and aim higher.
“all farmers get 40 growing seasons in their lifetime, giving them just 40 chances to improve”
How many growing seasons have you wasted and not thought about it that way?
How much does it cost you to work? -