Who doesn’t make a habit out of hating rich people? It’s hard to make a living in a world with runaway inflation and where the cost of living is always increasing. So, it’s easy to be resentful of the wealthy.
But most Americans still want to be rich.
Over six out of every ten Americans want to become billionaires one day – even though many resent the rich for being rich, evading taxes, and living the good life.
Becoming rich can take you years or decades to achieve – it depends on your ambition, your plans, realistically executing those plans, and changing how you view money.
You have to view money as a tool that allows you to have options in life. Money is not an end within itself. Have you ever been unemployed and homeless? I have. When you are poor you have ZERO options in life. When you view money as a tool, and not as a way to impress people, you have options in life.
Eradicate your debt. Save as much money as you can with every paycheck. Spend a lot less than you earn. Develop realistic financial goals that you can adjust as your income dictates. Get side jobs or side hustles. Invest. Explore business opportunities. Keep the money in the family and treat money as a tool, not as a goal within itself.
I want to be rich. I’m sure you want to be rich. But being rich is not all it is cracked up to be. It’s why there is a saying that no one wants to hear the rich complain. Even though we can’t relate to them, the rich are human beings too – and they have just as many problems if not more than the average person.
So, I hope you achieve financial security one day. But be careful what you wish for – here are four ways that being rich can be overrated.
No Time For Fun (24/7 Time Sacrifices)
It is not a shock to say that people, especially children born into poverty in disadvantaged urban centers are prone to anxiety, depression, and lured into criminal activity. The children of extremely rich people have the same problem. In fact, the children of rich parents or more likely than their poor or working-class counterparts to have anxiety problems, depression, or engage in crime.
The coddled children of the rich did not earn their money – at some point partying gets boring. They have no purpose in life and never have to work for money, so they get lost in drugs, drinking, or criminal behavior.
In 2013, a rich kid named Ethan Couch killed 4 people while driving drunk. His lawyer said the drug-addicted and alcoholic drunk suffered from “affluenza” – Couch was a coddled rich kid who was sheltered from the world due to affluence and could not appreciate the gravity of his actions. Miraculously, Couch was released on all charges after a trial.
Not soon after, Couch was arrested for taking drugs on probation.
I’m not saying that all rich kids act like this. What I am saying is that being rich means sacrificing a lot of personal time – sometimes even for family.
Unless you buy a winning lottery ticket, no one gets rich by accident. You might have to spend years or decades working 60 to 70+ hours a week to achieve your goal. The average millionaire is 55 years old. Young millionaires are the exception to the rule, not the norm.
Even when you become rich, the work does not stop. It might get harder. Becoming rich is not a destination, it’s a journey. The rules of business change every day and you must be attuned to the financial market.
I’m not saying you can’t make time for family or fun, but most of your time will be dedicated to making money. Millionaires and billionaires work all the time to make and protect their money. You will have to balance your personal and professional life accordingly.
You May Be Considered Cheap
Did you know that some rich people never carry cash? They are magnets for thieves or mugging after all. So, they may carry credit cards and a few bucks – they don’t have problems paying their credit balances.
Additionally, rich people who like staying rich don’t try to keep up with the Joneses to impress other people. Bill Gates looks like he gets his rumpled clothing from thrift stores. Warren Buffet drives a simple car and still lives in a simple house he bought as a young man.
Smart rich people always keep to a budget – they don’t buy gold chains or Lamborghinis to impress others. The dentists, laundromat, and restaurant owners in your local neighborhood may be low-level millionaires and you wouldn’t know it.
Smart rich people don’t flaunt their wealth – if you didn’t know what Bill Gates looked like and saw him, you would never guess he was rich. You would never believe he was rich. And for that reason, they are sometimes considered cheap and miserly.
You Can’t Trust Anyone
Bill Clinton once said that when he became president and globally famous, he stopped making new friends.
Why would he say something like that? If you can suppress your political feelings about him, you may see that he was right.
Over 70% of lottery winners, who are usually poor or working-class people who became millionaires overnight, lose all of their money within 3 or 5 years.
When you become rich, people you sat next to in fourth grade and casually talked to at lunch for a semester and never talked to again could contact you and ask for money. Estranged and close relatives and complete strangers will beg you for money.
Aspiring businesspeople will beg you for money.
Rich people are considered snobby and aloof, but no one considers that they are constantly hounded by friends, relatives, and strangers for money.
Would you want to live like that?
Rich People are Lawsuit Magnets
Earlier this year, a man sued actress Gwyneth Paltrow after the two collided in a skiing accident. The man lost the lawsuit and was ordered to pay Paltrow $1, an amount the actress paid for. But the man will end up paying 7-figures for legal damages and repaying lawyers.
Imagine you are in a fender bender. No one is hurt. You exchange insurance information and that is it. But now imagine this scenario with you and someone you know to be a millionaire or billionaire. Would you really let insurance handle it and drive away? Or would you consult a lawyer?
The 1% are lawsuit magnets. This does not mean that they should never be sued, it just means that a rich person is more opportunistically sued because of their wealth than an average poor or working-class person.
Could you live life like that, knowing that every person you get into an argument with or have a minor or severe accident with is more likely than not to sue you?
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.