The Secret To Managing, Growing, Preserving And Holding On To $1 Million Of Assets

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  • January 6, 2014

 

 

Did You Know That Less Than 1% Of The Planet Are Millionaires?

 

The Economist reports that there are two different “official” methods for determining who makes the cut

(1) Anyone whose net assets exceed $1 million.
In those terms, there are 24.2 million millionaires on the planet – about 0.3% of the world’s adult population,

(2) Anyone with investable assets of $1 million or more – meaning that they actually have over a million dollars NOT including the home in which they live.

By this measure there are about 10 million millionaires on the planet, 0.14%

Millionaire Or More Status

In 1920 – 1929 ………… 0.3 – 3.0% of the world population

In 1970 – 1979 ………… 0.3 – 3.0% of the world population

In 1990 – 1999 ………… 0.3 – 3.0% of the world population

In 2000 – Today ……… 0.3 – 3.0% of the world population

“WHY IS THIS?

To answer this question, consider the following…

Is Redistribution Of Wealth The Answer? How Long Can You Hold On To Your Money?

Many of you have heard me say this before, but it drives home many points.

In Tibet, it was once decided to gather all the wealth and redistribute it equally amongst everyone, so everyone had the same financial sum of money. Within a short amount of time, the poor went back to being poor, the middle class went back to being middle class and the rich went back to being rich. Three times they did this experiment, and each time the results were exactly the same.

Research shows that the majority of people that suddenly come into money, within a few years they will be right back where they started. The vast majority of people do not have the internal capacity to create and hold onto large amounts of money and the increased challenges that go with it.

A perfect example is lottery winners. Research has shown that most lottery winners eventually return to their original financial state, the amount they can comfortably handle.

According to a 2010 study by researchers at Vanderbilt University, the University of Kentucky and the University of Pittsburgh, the more money you win in the lottery, the more likely you are to end up bankrupt. The authors divided past lottery winners into two separate groups: Those who had won cash prizes between $50,000 and $150,000, and those who had won $10,000 or less. What they found is that those who had won the more sizable sums were more likely to have filed for bankruptcy five years later. Similar research from the National Endowment for Financial Education estimates that 70 percent of people who had unexpectedly come into large sums of money ended up broke within seven years.

Do you see a pattern?

97% of the world do not have the values, beliefs and mindset aligned to manage, grow, preserve and hold on to money or to become financially free.

To help you develop this mindset, start small. Small changes added make a massive difference. If you were driving a car north in the desert and you turned the steering wheel 5% to the right, after a while you would end up at a completely different direction.

So with the aforementioned in mind do the following.

To teach your brain how to manage, grow, preserve and hold on to $1million of assets, first prove to yourself that you can do it with $500,000….. before that, first prove to yourself that you can do it with $250,000 ….. before that, first prove to yourself that you can do it with $125,000 …… before that, first prove to yourself that you can do it with $60,000 ……. before that, first prove to yourself that you can do it with $30,000…….. before that, first prove to yourself that you can do it with $15,000…….. before that, first prove to yourself that you can do it with $7,500 …….. before that, first prove to yourself that you can do it with $3,000 ….first prove to yourself that you can do it with $1,500 …….. before that, first prove to yourself that you can do it with $750…….. before that, first prove to yourself that you can do it with $400 …….. before that, first prove to yourself that you can do it with $200….. and finally …….. before that, first prove to yourself that you can do it with $100

If you cannot manage, grow, preserve and hold on to $100 of assets do not expect to do it at a higher level

“When you are emotional, you make unwise decisions rapidly. The stock market is a financial redistribution system. It takes money away from those who have no patience and it gives it to those who have. If you can’t manage your mind & emotions, don’texpect to manage money. Once you have ordinary intelligence, what you need is a temperament to control the urges that get other people into trouble in investing.”   

Warren Buffett, 2nd Richest Man In The World

Please leave a comment and let us know what you think and how you will be applying the above lesson.

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