Are You Crypto Rich? Learn These Skills Before You Lose It All!
![CRYPTORICH.jpg](https://steemitimages.com/DQmauqE7NWm7m6v7A79SnDUggngAzURqxj8GcD1YaabiaQE/CRYPTORICH.jpg)
SUDDEN WEALTH
There is one common theme among people who receive large sums of money in a short amount of time. They most often lose all of it almost as fast as they got it.
Think of people who win the lottery. History shows us that many of them declare bankruptcy within 5 years.
Why is it that someone can be given more money than they would have earned in their lifetime but then lose it all?
It's because they are still the same people they were the day before all those riches fell into their lap. They have the same flaws, the same strengths, and the same habits. Just because they now have money does not mean that their character has improved. Character is not magically improved by money, it is simply more easily seen because money magnifies a persons character.
If they didn’t have a healthy knowledge of how to properly handle money before they became rich, they will only have their poor money relationship enlarged. The consequences of which can lead to the destruction of everything around them.
Dave Edwards — a former drug addict and felon — won a $27 million jackpot in 2001 while unemployed in South Florida.He quickly blew through the money by purchasing a $1.6 million house in Palm Beach Gardens, three racehorses, a fiber optics company, a Lear Jet, a limo business, a $200,000 Lamborghini Diablo and a multitude of other luxuries.Edwards and his wife returned to drug use and had numerous run-ins with police for possession of crack cocaine, pills, and heroin.
He lost all of his money in just a few years and ended up living in a storage unit surrounded by human feces.
This story is just one of thousands. Why do people go broke when they get so much?
![Lambo meme.jpg](https://steemitimages.com/640x0/https://steemitimages.com/DQmaFxRa3HAErioKuhmpJca75ouUg6pwga11YYgGAV4aPn9/Lambo%20meme.jpg)
Far too many people only think of the actual money, but there is a much greater thing to acquire – the money mindset.
One of the important rules of wealth known to those who have the correct money mindset is that they know riches do not equal wealth. They do not go out and buy a new Lambo because they have the money for it, but because they have their wealth earning them riches. If their wealth earns enough to buy a Lambo, and that is what they want, it is perfectly fine for them to go out and buy it.
The key difference is that a rich person is one who just has money and a wealthy person is one who has money producing assets.
The rich person with the Lambo just became instantly poorer with no way to regain that money, while the wealthy person with the new Lambo will see their riches increase again in time.
CRYPTO RICH
The new “crypto-rich” have only seen rapidly increasing gains for the past year. When an asset class continues to hit new high after new high, with only short pullbacks, the investor can think that everything they touch turns to gold.
It is riches without work. Money without meaning.
Gandhi said there were seven deadly sins, and that is one of them. Becoming rich without adding value to society goes against the natural law of things. Becoming rich without the hard work and failure that is often in the way of obtaining money. People suddenly granted riches often have a dysfunctional relationship with money.
They have:
- Inability to delay gratification
- Inability to tolerate frustration
- Low self-esteem
- Lack of identity
- Social and emotional isolation
- Unrealistic expectations
- False sense of entitlement
- Depression
Like Dave, the lottery winner, they overspend with no concern about the future. They use the money as power to control others. If they bought everything they saw on a TV shopping network before they became rich, they will continue to do so – magnified 1000X.
LEARN THE SKILLS
We all are a product of a lifetime of experiences that no amount of money can buy. Those that truly deserve to be wealthy have survived and prospered not because the money came easy, but because it came hard. They experienced many failures and rose up to the challenge to become successful.
Those granted wealth, those that never had a challenge or a setback, never learned the skills and abilities that allow them to remain wealthy. This is why money hardly ever lasts to the third generation.
The Grandfather made it. The son spends it. Nothing makes it to the grandkids.
The son received the money without the character traits necessary to keep it.
Fortunately, the traits can be learned. If you have become rich off of crypto (or just won the lottery), you need to make learning the proper money mindset of the wealthy a priority.
The first book you should read is “Your Money or Your Life” by Vicki Robin and Joe Dominguez as the ideas presented lay a healthy foundation towards money.
The second book is “The Millionaire Next Door" by Thomas Stanley and William Danko. It will teach you why you need to create a wealth stream and only use that money to buy things. Never spend the principal.
The third book is “Rich Dad, Poor Dad” by Robert Kiyosaki. This book, though light on details, will show you why it is important to build up a passive income empire while getting you excited about the possibilities.
So much truth in this. Ive heard about this happening but it's amazing that you put it into words and gave some substance to it!! Hope that people who do end up in this position listen to the advice. This is quality post....keep up the great work.
It is important as the crypto rich have been given a wonderful opportunity to change their future forever if they can hold on to it all.
Incredibly insightful. It would be interesting to hear WHY people are investing (or gambling for those risking it all). Money should serve a purpose, which means knowing how you plan to use it. For most, I would expect it to be to improve the inprove the quality of life for themselves and their family. For others, they have materials wants. For all, the HOW of using their newly found crypto wealth is yet to be seen and requires a plan of action (and discipline).
The Millionaire Next Door is one of the first books my father had me read on personal finance. The concept of Financial Defense vs Offense still resonates with me today. Great shout out!
Your father is a smart man! Thanks for the excellent comment.
This article has made my day. Resteemed already. But sharing it outside on many other platforms just because it has such an amazing message. Simply fantastic.
Appreciated, thank you :D
oops, how can I forget to follow you. Done !!
I know a family who won the lotary and invited in a gas station business, something they have never worked with, few years later they had so much debt that they were almost as poor as they were before. Investing money in things y have no clue how it works might be really dangerous.
Thanks for the the tips and I'm really curious about the books, gonna check them out. Cheers!
Ouch! It happens all the time all over the world. Thanks for sharing such a relevant story 😀
This our biggest problem in Africa. I did my high school in DRCongo and the funny thing is that rural people who used to go and look for gold were just rich for a while. They could get their golds, cross to Uganda and sell them to Chinese and Indians, enjoy life and then go back to look for more golds. When political instability happened all these people had nothing in their banks accounts. I mean even the least ones could keep their money in their houses.
I do imagine if these people could find these money hardly, they would look a way of protecting their wealth.
Thanks again
This happens to anyone that comes into money without having developed the wealthy mindset. Thanks for sharing your story, Jona! 😀
You're Welcome @getonthetrain
Amazing post, really, it's a shame people blow all their money when they get rich, if my crypto investments ever amount to anything there are 3 things that i would do with my money:
3.Buy more cryptos that have good companies backing them up
Passive income is probably the best thing a person can have is in life, the dream is to have at least 2k of passive income every month(ofc 10k per month would be even better xD)
😀 We think alike, my friend. You might want to check out @scaredycatguide as he sometimes talks about real estate investing.
Great article... I shall share this one on crypto Facebook group!
Thank you so much 😊
great post @getonthetrain
Someone else mentioned counseling for lottery winners in other countries. I often think something like that should be instituted for young sports stars, paid for by the league, to make sure they are taking care of their future needs instead of blowing it all today.
Yes, this happens to a lot of sports stars as well. I think the tales of all the broke players of the past has finally hit home. I think that financial preservation is being taught, or at least talked about, in the locker room.
There are a few advertising contracts that have future lump sum deposits built in. Say 20 years from now the player gets a few million dollars for doing the ad today. Security to know that they will have something if they mess up before then.
The first thing that came to my mind while reading this was the principles in Robert Kiyosaki's book. That book has totally changed my mindset on spending money. Now I see everything as an investment and what returns it can give me. Thank you so much for sharing the other two books. Getting them asap. :)
The other two are must reads for developing your wealth mindset. Thanks for confirming the benefits of Kiyosakis book!
I recommend those same books!
As Robert Kiyosaki says, He wanted to buy a new Porsche, and he had $50,000. Instead of buying the porche, he found and bought a cashflow producing asset. And that cashflow allowed him to buy the Porsche. Now, he continues to have the cashflow AND the Porche.
Great example of the wealthy mindset in practice. 😉