“If you don’t find a way to make money while you sleep, you will work until you die.”
— Warren Buffett
The saddest thing to see is people who “are rich” spending way more than they earn and end up losing all their money. They spend their riches on material things, such as cars, homes and watches, that allow them to let everyone around them know how successful they are. There are multiple studies that show that people who happen upon a large sum of money very quickly are likely to lose it all. There are probably thousands of lucky crypto investors too who mooned and lost it all.
Contrast that with people who concentrate on accumulating wealth. These people are focused not on how others view them, but on what their money can provide them via peace of mind and security. Their goal is to save, invest and accumulate wealth not to impress anyone, but to achieve financial independence so they can enjoy the benefits of accumulating wealth, which can include a stress-free retirement, the ability to be philanthropic, the ability to take care of family or the ability to travel and create experiences. They understand that material things are fleeting and that their “stuff” has no lasting value.
Wealthy people amass assets and making their money for them. Buying a Lambo if your crypto moons is a terrible financial decision. You’d want to secure yourself with a financial safety net first and then figure out how to make passive income. Only once I’m making so much money through passive income that I don’t know what to do with it anymore, I might spoilt myself a bit 😉