Things to avoid when you earn a lot or become rich

[STT]

Nothing worse then someone who suddenly becomes rich and has no real experience in how to stay rich for the entirety of their life.   Then you have peaked and are only in decline from that moment of acquiring the wealth.    The best choice with wealth is security, its the one point I'm returned to continually that is entirely relevant to economics as I believe it drives the whole of capitalism in a big money sense at least.

The security of money is paramount or you really aren't rich at all, if you cannot sleep safe and secure knowing you can eat next week next month and be safe then you arent rich at all you merely have cash today.  Hence its all about security of your long term wealth that matters;  a vital lesson to learn.

[X-ray]

Nothing worse then someone who suddenly becomes rich and has no real experience in how to stay rich for the entirety of their life.   Then you have peaked and are only in decline from that moment of acquiring the wealth.    The best choice with wealth is security, its the one point I'm returned to continually that is entirely relevant to economics as I believe it drives the whole of capitalism in a big money sense at least.

The security of money is paramount or you really aren't rich at all, if you cannot sleep safe and secure knowing you can eat next week next month and be safe then you arent rich at all you merely have cash today.  Hence its all about security of your long term wealth that matters;  a vital lesson to learn.

honestly if someone is so financially illiterate they are just few steps away from meeting some fund management if they are rich enough and then their wealth already guaranteed being managed by professionals and are.
but in some cases I agree with you though some people are just so financially illiterate they just never think about keeping their money from declining by overspend and what they think is just sports car, buying luxurious things and all, i personally even if i suddenly become rich but don't have any means of income that could at least guarantee my wealth safety i'd be anxious and will strive to make some come of income to compensate such as passive income by investing the money only then I can rest assured that the wealth gonna lasts for long and make sure the money gonna be working for me.

i've seen plenty of former celebrities and so on where they accumulate wealth so much the first time they get famous only to later on struggle financially, there are many cases of that and its not only limited to celebrities as a profession, any profession that doesn't guarantee income until the old age or at least until the age of retirement is always subject of financial struggle when they gets old since there's no means for them to earn and becoming self sufficient.

the fact that we need to reinvest thing to survive is essential for the low income people, for the rich with many wealth, its important to invest in order to keep wealth from declining, investing is always a necessity.

[Mrbluntzy]

Everything you said is correct but you didn't discuss about investing wisely. Investment is very important in the life of any individual that has started working to earn money. There's a saying "nothing last forever" If someone is earning money from a job and they believe they can work on that job for their entire life, they can get disappointed when table turn against them but if they invest while working they can enjoy the investment when they are no longer strong to work  hard. I just want to specifically say that investment is very good. While earning, don't fail to invest.

[AnonBitCoiner]

That only proves that rich people even become more thrifty in order to save more than to spend more. For me, that is a great mindset if you want to stay rich. And by staying rich it’s not necessarily that you need to make all out investments, sometimes even by saving a little out from your expenses will help you to remain rich by not spending a lot on your purchases, but by saving big when you spend big.

Rich people have enough money so they don't focus on saving but they prefer investment as it can give them more money besides their income. I think if those individuals who don't have enough money work hard by spending less and saving more then they can also change their financial system with the help of their planning.

Nothing is hard if a person works for it therefore saving should be assumed as a compulsory strategy of life. The condition of nobody can change in a day so work for it and follow your planning until you become satisfied with your financial condition that becomes favorable due to your efforts.

[C10H15N]

Your labor is a finite resource.  There are only so many hours in a day and so many days in a lifetime.  Your ability to exchange your labor for money is not scalable or infinite.

Your money, when invested, can work 24/7/365 making you even more money and it is infinitely scalable.

Most of us who started with nothing have no choice but to work for our initial money to invest (capitol).  The late Charlie Munger summed it up best:

"The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do – if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit." - Charlie Munger

https://jayvas.com/charlie-munger-is-right-haul-ass-for-your-first-100k/

Once you are no longer living paycheck to paycheck, the game changes dramatically and the way you view money changes forever. 

[Iranus]

Furthermore, if we really want to help the poor by giving advice, we should share what we have experienced. Not the experiences we copy online and share with everyone saying they are our experiences. Like OP's advice, I don't see anything unique or feel like it's his experience and I guess we can easily find that advice online.

Most rich people who give advice about how to become successful haven't actually experienced what they say. They want to get public attention by making themselves appear as if they are hard workers who have achieved success. I see a lot of young rich people who provide motivation in the seminars they hold. They say that they can be successful because they work hard and don't give up. The funny thing is that they don't mention the privileges they get. They have connections with banks so they can ask for bank loans to open a business. If they fail, they can still pay it off and start a new business.

It cannot be denied that there are many young people who can succeed early and become rich but that does not mean they can give advice to others to get rich because as I also said. Each person has a different life situation, different life challenges and more importantly, our starting line is different. Therefore, truly experienced and mature people will not arbitrarily give advice to anyone, or try to brag about their success.

For me, giving financial and investment advice to others is a huge risk, let alone getting rich or teaching someone how to spend money. If someone can get rich with their own hands, with their own efforts, then they are not stupid enough to not know how to manage their finances and need someone else to teach them.

[Yatsan]

I remember an ideology which says that if you move to level three (pertaining to net worth) don't be in a rush to upgrade your lifestyle as well on the same level. For me it simply means to create a margin with how much you have and how much you would spend because if it would be equal, then nothing will change. Personally, whenever I am planning to buy new things like a new phone, I do check if I could buy it 10x first before actually making a purchase, which works for me and allows me to not be on a financial burden for the next days or months. Becoming rich indeed is a wonderful thing to happen in everyone's life and for sure it would be tempting to buy anything you would want to however if things won't be consistent you have to consider managing your cashflow still.

[Gaza13]

Don't brag or tell everyone about it, not all of them would be glad about your success some might be envious of it.
Avoid showing too much or spending too much when you are in gathering or meeting up with your friends or family.

Yes, it would be good if we had sufficient income in this case, it would be better if we didn't look too flashy when we socialize in society and look as simple as possible. Use your finances as wisely as possible, what you have obtained so far has been full of struggle for a long time. Take advantage of what you have achieved so far and continue to get other sources of income.

[bitgolden]

From what I understand by looking at all the rich people, the thing that most rich people avoid (and the most common one) is taxes. I do understand that rich people do not want to pay taxes because the amount they are paying is huge compared to anyone else, but without that money going to government, a nation can't be sustained, so nations do end up charging even higher taxes to middle income or basically any salary worker.

All in all, I believe that tax is something everyone should pay, even if you have to pay billions because you are rich, you should. Avoiding silly investments just because you want to, is the number one thing that they should avoid, we have seen how it works so far and I think it will not be all that simple for wealthy to stop being silly with their money.

[C10H15N]

From what I understand by looking at all the rich people, the thing that most rich people avoid (and the most common one) is taxes. I do understand that rich people do not want to pay taxes because the amount they are paying is huge compared to anyone else, but without that money going to government, a nation can't be sustained, so nations do end up charging even higher taxes to middle income or basically any salary worker.

All in all, I believe that tax is something everyone should pay, even if you have to pay billions because you are rich, you should. Avoiding silly investments just because you want to, is the number one thing that they should avoid, we have seen how it works so far and I think it will not be all that simple for wealthy to stop being silly with their money.

It doesn't (and can't) work that way.  Investors create the jobs for workers to have.  Workers pay the vast majority of taxes. If you remove the incentive to invest in jobs, the wealth will simply move to another, more profitable, investment.  The wealthy (investment class) have options that simply are not available to the poor (working class).  Any government attempting to screw the rich will find itself broke, out of power, and dealing with a failed economy.   

[|MINER|]

Most people become ostentatious after becoming rich.  It means they want to show everyone that they have a lot. And this is a disaster for them. Because they get so caught up in the show-off game that they buy things beyond their means. This puts them in debt. More debt is the cause of their emotional pain.  Turns out. Everyone should plan to live a normal life. Live within their means. And pay off debt and live a healthy life.  If we notice, we will see that many rich people own a lot of debt. And everyone should have a plan to use it properly after earning a lot of money and arrange how to get profit from that money. Otherwise, they will sit and eat.  Money will run out one day.

[SmartCharpa]

2.Pay your Debt

Having debt or bad debt is why most of us continue to suffer because it's like a weed that, if you don't cut the root, will grow again. And the debt, when you don't pay it, has interest compounding. So your number one expense is to pay off the debt when it earns a lot of money. Be responsible not to ignore the people we owe money to, talk to them, say thank you, and pay all the debt.

We should also know that our reputation also depends on it, and when we know how to pay, many people will trust you. And when you know how to pay off debt, you also show that we are not only thinking about ourselves.

Having a debt without paying it back is not a good behavior. Though I believe that many people are used to borrowing money, there's nothing they can do without borrowing money from others, and after getting the money they want, they become stronger than the owner. Someone who is in debt can never be satisfied with their life since any little amount of money they receive will be used to pay the person to who they owe it. Bad debt normally leads people to suffer, let's avoid debt with anyone, and if we do, borrow only what we can afford to repay because it will damage our image.

That's the sad truth about life, when they are in need and you were there, they're happy. But when the time of payment is being asked on them, they almost no care at all.

Anyway, it's not a loss for me and the lenders that have been so good to their friends and relatives when they're in need.

That's the loss of the borrower and they can never find us again with that in their condition.

That is natural in life, most of us have experienced it, some of our friends will take advantage of our good deeds to borrow money from us, but when the time comes to repay, they don't care. It's true, some of my friends borrowed money from me and refuse to repay me. So one day, I requested one of them to borrowed me some money, which was less than what he owed me. After receiving the money from him, I didn't care that he owed me money, I paid him back and he didn't think of paying me back again. They will never come to me for money again.

[electronicash]

2.Pay your Debt

Having debt or bad debt is why most of us continue to suffer because it's like a weed that, if you don't cut the root, will grow again. And the debt, when you don't pay it, has interest compounding. So your number one expense is to pay off the debt when it earns a lot of money. Be responsible not to ignore the people we owe money to, talk to them, say thank you, and pay all the debt.

We should also know that our reputation also depends on it, and when we know how to pay, many people will trust you. And when you know how to pay off debt, you also show that we are not only thinking about ourselves.

Having a debt without paying it back is not a good behavior. Though I believe that many people are used to borrowing money, there's nothing they can do without borrowing money from others, and after getting the money they want, they become stronger than the owner. Someone who is in debt can never be satisfied with their life since any little amount of money they receive will be used to pay the person to who they owe it. Bad debt normally leads people to suffer, let's avoid debt with anyone, and if we do, borrow only what we can afford to repay because it will damage our image.

That's the sad truth about life, when they are in need and you were there, they're happy. But when the time of payment is being asked on them, they almost no care at all.

Anyway, it's not a loss for me and the lenders that have been so good to their friends and relatives when they're in need.

That's the loss of the borrower and they can never find us again with that in their condition.

That is natural in life, most of us have experienced it, some of our friends will take advantage of our good deeds to borrow money from us, but when the time comes to repay, they don't care. It's true, some of my friends borrowed money from me and refuse to repay me. So one day, I requested one of them to borrowed me some money, which was less than what he owed me. After receiving the money from him, I didn't care that he owed me money, I paid him back and he didn't think of paying me back again. They will never come to me for money again.

that's becoming generous. to which if one hears the story another friend of you will come to ask. don't be afraid to show that you are not nice. if you can say no, say it.

for me, i'd rather avoid showing that i have money, this at least will make them attempt to ask. i make sure they know i have no money and just wear the simplest clothes or just buy a second-hand car to avoid the impression that i'm rich.

[Fortify]

Getting all the debts or as much as possible should be the first objective, because debts inject a sense of panic and restlessness in the borrower and this leads to diseases. Next should be savings to be able to plan for the future if possible in a bank and some for buying bitcoin at the lower prices.

Next should be daily necessities and leading a humble life because you dont want to show the world you are rich and gain attention, that leads to disastrous results but continue in your lifestyle and gradually upgrade it.

Savings are very important, most people forget this and they instead spend more than they can afford.

Warren Buffett gives very good advice on this front, although you can often sometimes find contradictions in what he says and it changes over time. Basically the only good debt is a mortgage and even that is only acceptable when offered at a decent rate. A house will likely appreciate in value but if you're borrowing to fund a new car, you are literally losing thousands as you roll it out of the dealer. If you love cars, it's your hobby and you do it with eyes wide open - there's nothing wrong with that. However you'll often find that, the younger generation in particular, are bombarded with advertising all the time and will often stretch their finances to the limits in order to buy stuff they don't really need and that is very wasteful.

[C10H15N]

Most people become ostentatious after becoming rich.  It means they want to show everyone that they have a lot...

No.  Most wealthy people do NOT show off.  Wanna bees who buy luxury items on credit to show off are the real market for such items.  Real wealth is usually vastly understated.

Fake it until you make it is a lie.  Faking it (debt) will stop you from making it.  New Cars are the biggest wealth killer in the world. 

In the words of Dave Ramsey "Don't spend money you don't have to buy things you don't need to try and impress people you don't like".
 

[Promocodeudo]

If you’re lucky enough to become rich you should avoid excessive materialism, flaunting your wealth & surrounding yourself with money focused individuals. It's important to prioritise financial responsibility, seek genuine relationships & make informed investment decisions. You should avoid neglecting your personal well being & prioritise mental & physical health. By avoiding these pitfalls you can maintain a balanced & fulfilling life as a wealthy person.

I just believe that no matter how wealthy you are,  your utmost concern should be the sustenance of your wealth not showup or extravagant life style, some wealthy individuals are broke today despite how rich they were just because they failed to build a good channel for the continues existence of their wealth, as a wealthy person establishing more profitable firms or companies should always be your goal,  I somuch love it where you mentioned health, for me every healthy person is potentially wealthy, I said this because if you are not physically and mentally fit I don't think that you have any business with wealth even though you are wealthy and eventually you become sick, there is know guarantee that you will enjoy your wealth.

[Dr.Bitcoin_Strange]

People who became rich out from hardwork and sacrifices, they don’t actually stop there and just settle on their present wealth. Instead, they set and work for a new goal to achieve, not just to grow their funds, but to increase their source of income as well so that if ever one business ends up into failure, at least there are still some left that would be reliable to generate profits. That’s how open minded the rich people are, they don’t wait for opportunities to come knocking at their door, but they always look and grab every opportunity as much as possible.

Well, you are right. This time around opportunities don't even knock at the door of people again, people gat to stand on their feet and go look for the opportunity. Some of those rich people you are talking about who started from a hard way and finally made it to the top, they always seek to archive more goals and they also archive lot of diverse income streams and it also help them to retire on time and live longer because of how early they may retire to just keep on taking care of their self and eating from the fruit of their labor.

[bestcoins1]

Surrounding yourself with the wrong people: It is crucial to surround yourself with positive and supportive individuals who have your best interests at heart. Avoiding toxic relationships and influences can help you maintain a healthy perspective on your newfound wealth.

I remember when I made my first hundred thousand. honestly the first thing that came to mind was friends,and the next thing was to join them in spending carelessly

Everyone who wants to be successful in any field, including business and other economic fields, must be able to see a good and positive friendship environment so that the person can find ways to increase their income. Especially passive income because when there is a rich person in our own environment, of course we have to be able to approach him and learn from him because there are definitely things that we don't know, but he knows so he has become rich and successful through his knowledge.

[iv4n]

Most people become ostentatious after becoming rich.  It means they want to show everyone that they have a lot...

No.  Most wealthy people do NOT show off.  Wanna bees who buy luxury items on credit to show off are the real market for such items.  Real wealth is usually vastly understated.

Fake it until you make it is a lie.  Faking it (debt) will stop you from making it.  New Cars are the biggest wealth killer in the world.  

In the words of Dave Ramsey "Don't spend money you don't have to buy things you don't need to try and impress people you don't like".
  

Some people like to show off, and some people don't. Surely there are such people in all social classes, the common thing for such people is that they usually overspend on things they don't need... Ramsey said it nicely, people shouldn't do it, but many people will never stop with that, especially how modern society looks, it's all about prestige.

As always, people should be free to do what they want with their money. So it's OK if someone wants to show off and can afford it, but when it comes to all others "overspending" will get them nowhere (if they don't marry someone rich ). In the long run, this is something that can lead to serious debts, and where there are serious debts, there are also serious problems. Without going into details, a lot of things can go wrong.
The conclusion was that we should not spend too much, whatever social class we are in, it is wise to take care of finances and try not to overspend on things we don't really need.

[Casdinyard]

 ~snip~

Good list, but here's my two cents regarding this topic. The thing is there's nuances when it comes to buying expensive things. To me, buying expensive shit as a form of reward every now and again, is totally good and permissible, at the end of the day, you put in the effort and the hours that lead you up to that level of wealth, you can't just work and not live your life. Buy expensive shit as a form of reward, treat yourself and your day ones to new experiences, make the most out of the money you made. Money is made to be spent, not to be hoarded after all.

And of course, protect your money-making machine. You can't just quit it or leave it hanging out in the open as soon as it served its purpose and had made you wealthy already. Keep learning new things related to that craft, become more versed, protect your income and your income-maker, and you'll go far my friend!