One of the keys to Creating Wealth That Lasts is to develop a long term perspective and to not get caught up with what the Jones’s are doing. Do you really need all the new gadgets that are coming out?
What about designer clothes? You should buy good quality, as this will last much longer. But how much are you willing to pay for a NAME on a piece of clothing? It will be out of style in no time anyways.
Here is some information I found on Mike Tyson. Please do not think that I am providing this information to disparage Mike but to provide an example.
During a 20 year career he earned in excess of $400 million. Before his 39th birthday he was $39 million in debt. Minus $39 million after earning $400 million!
He employed, at one time, more than 200 people including bodyguards, chauffeurs, etc.
Let’s look at his spending:
1. $4.5 million on cars and motorcycles.
2. $3.4 million on clothes and jewelry.
3. $7.8 million on personal expenses.
4. $140,000 on 2 white Bengal tigers and $125,000/yr for their trainer.
5. $2 million on a bathtub for his first wife.
6. $410,000 on a birthday party.
7. $230,000 on cell phones and pagers during a 3 year period.
If you feel that being wealthy is about big cars, mansions, jets, expensive jewely, etc., you will have a hard to develop good savings habits and you might find yourself having made good incomes throughout the years but not have much to show for it.
Take a long term view.
Jacques
CreatingWealthThatLasts
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