Article: a million dollars doesn't make you a millionaire

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We've all heard the stories of someone who has won the lottery.

He or she has pulled the right numbers, and from one day to the next, they are a million dollars richer.

A year later, or even the same year, magically, that same million dollars are vanished. 

Everything is spent, and these people often end up even more poor than they were before.

How could this happen? Many people say, "That wouldn't happen to me; I would spend it more wisely." According to Jim Rohn, he's not so sure about that. 

Winning the big lottery ticket often ends up being a poisonous gift, 95% of people just can't manage it.

Buying a big house or a fancy sports car without taking into account the extra cost that comes with the lifestyle is a recipe for disaster. 

 One of the most important transitions someone can make with their wealth is changing the habit of spending to investing.

Let your money work for you by buying assets instead of liabilities. 

Assets are investments that (can) provide wealth over time, like buying precious metals and real estate.

Liabilities are objects that only cost (more) money over time, like buying a car or the cost of your daily expenses. 

Simply said, assets are what you own, liabilities what you owe.

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'If all the money in the world were distributed equally among everyone, it will soon end up in the same pockets' - Jim Rohn

People have often imagined what the world would look like if money could be 'fairly' distributed.

To understand that this won't work, one must look at the core of the situation.

At the basis of money distribution is the habit of spending. 

Companies earn money because of the ways people spend their money, hence, the poor get poorer and the rich get richer.

People just love to blame others without first looking at themselves. 

In the economy, we get paid for the value we provide to others.

Thus, a company that provides goods or services has a greater economic output than someone who works a nine-to-five job for a company. 

If you aren't able to make that million dollars you've just won, create more output... guess what? It will diminish over time. 

To tackle this problem, one should become what is called financial literate.

Study economics, money flows, company statements, business law, etc.

First, try to earn small amounts, reinvest, and put that hard-earned money to work for you before spending (large) parts of it. 

Over time, as your skills grow, the value you add to the marketplace will grow.

The key here is to primarily work on yourself. 

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'To develop an above-average income, you have to become an above-average person.' - Jim Rohn

Most wealthy people had to learn this the hard way.

Before acquiring their generational wealth, they often lost everything, sometimes even more than once.

Educate yourself

Learn from the greats in financial history!

Financial success is a slow process, and one shouldn't focus solely on making money grow but rather on growing yourself.

Learn to plan long-term, and when starting a venture, see what you can become in the (not so) distant future.

Making a quick buck, just like winning the lottery, has proven to be unsustainable over time. 

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