Why things like poor millionaires exist
If you had $1 million in the bank, would you feel wealth? How about if you had $2 million? What about $5 million?
If you’re not a millionaire, more than likely you said, “YES!”-probably at the $1 million mark, and most definitely at the $5 million mark. Most everyone thinks that having enough money will make them rich and solve their financial problems. But what those who are really rich know is that money doesn’t make you rich at all.
Revisiting our $1 million to $5 million question, consider this finding from a survey by UBS: Only 28% of those worth $1 million to $5 million considered themselves as wealthy.
How could this be?
“Half of those worth $1 million to $5 million believed that one bad break, such as a market crash or a job loss, would have a major impact on their lifestyle.”
In other words, these millionaires have a lot of money but not a lot of financial intelligence. How do I know? Because a financially intelligent person isn’t ruined by a job loss or market problems. The rich do not worry about these things nearly as much as the poor do. Why? Because the rich know how to prepare for them.
The survey by UBS brings to light a reality of many millionaires. They are not really financially free. Rather they are high-paid employees that have a large amount of liabilities, bad debt, and bad spending habits. Some even live paycheck to paycheck.
This confirms a simple truth: no amount of money can change bad financial habits. In fact, it often magnifies them. The rise and fall of lottery winners and pro athletes are good examples of this.
This week, in the US, we celebrate Thanksgiving. Many families and friends will come together to feast and to enjoy one another’s company. Many of these folks will then leave to stand in line hoping to get deal on this or that knickknack-a new flat screen TV, a video game consul, toys, and more. Some of them will spend the next day running around like crazy people on the hunt for deals.
In 2015 consumers spent $67,560,000,000 in store and another $2,932,000,000 online on Black Friday deals-an average of $403.35 per person. This year, even more shoppers are expected and even more money will be spent.
This will be just the beginning of a glut of holiday spending. With the average shopper going into debt by $986 on average. Couple that with the fact that the average household has a total personal debt of more than $90,000, and you can start to see that the average person has a real problem when it comes to money.
The fundamental difference between the truly rich and wealth, and the poor-even those with millions of dollars-is that the rich invest in cash-flowing assets that cover their liabilities, and the poor rely on a paycheck, spending it all often before they even have it in hand. These “poor” millionaires just happen to spend a lot more each month than the average person.
SO MUCH OF SUCCESSFUL ENTREPRENEURSHIP is learning to lead yourself. It requires some luck, but more than anything it means always pressing forward and a good dose of creativity especially when things don’t look good.
It’s not surprising then that Anthony Scaramucci’s book, Hopping Over The Rabbit Hole: How Entrepreneurs Turn Failure Into Success is not just an important read for would-be entrepreneurs but anyone who looking move through life in a forward direction.
Scaramucci is the founder of SkyBridge Capital, a global investment firm with around $12 billion in assets. The firm also produces the annual SkyBridge Alternatives (“SALT”) Conference, a premier global investment and thought leadership forum. But his road to success has not been without a number of failures and near-misses. And he shares many of them to our benefit. He points out that SkyBridge’s success was ultimately defined by “our ability to learn from mistakes and turn failures into success.”
He writes: “I’m a firm believer in the idea that you’re either moving forward or backward. You’re either growing in confidence or swelling with hubris. The moment you become complacent is the moment you lose your edge. There is always somebody working harder than you, and there are always copycats ready to take the model you’ve built and make it better.”
So “we need to put our egos on the floor, get outside of our comfort zones, and push ourselves, while maintaining some level of gracious audacity.”
Life and business bring with it regrets. But we can learn from them or let them hold us back. The danger is to look for to blame and not taking responsibility for your outcomes.
By Daniel Goleman
A primary task of leadership is to direct attention.To do so, leaders must learn to focus their own attention. When we speak about being focused, we commonly mean thinking about one thing while filtering out distractions. But a wealth of recent research in neuroscience shows that we focus in many ways, for different purposes, drawing on different neural pathways—some of which work in concert, while others tend to stand in opposition.
Grouping these modes of attention into three broad buckets—focusing on yourself, focusing on others, and focusing on the wider world—sheds new light on the practice of many essential leadership skills. Focusing inward and focusing constructively on others helps leaders cultivate the primary elements of emotional intelligence. A fuller understanding of how they focus on the wider world can improve their ability to devise strategy, innovate, and manage organizations.
Every leader needs to cultivate this triad of awareness, in abundance and in the proper balance, because a failure to focus inward leaves you rudderless, a failure to focus on others renders you clueless, and a failure to focus outward may leave you blindsided.
Focusing on Yourself
Emotional intelligence begins with self-awareness—getting in touch with your inner voice. Leaders who heed their inner voices can draw on more resources to make better decisions and connect with their authentic selves. But what does that entail? A look at how people focus inward can make this abstract concept more concrete.
What if you could measure yourself in the areas that matter most? What if you could get an overall score for your life, gain a newfound sense of control, and create the life you want?
My new and improved LifeScore™ Assessment will show you how.
I designed this tool with one goal in mind: to help you identify a baseline of health in all the major domains of your life. That way you can improve any area that’s lagging and experience a richer, more rewarding life—no matter what’s going on in the world around you.
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