After you're a millionaire, will you go broke?

**FDJustin** · Sep 9th, 2010, 12:16 PM

If I go broke after I get rich, it'll most likely be from starting new projects that just suck my resources to nothing.

I do understand for my toys, I'll either need to get them with the money I'm (reasonably) guarunteed to get, or when I have enough over their cost that it's not a bad choice. For example, the jetpack I want is 100,000. If I had 1 million, I'd think long and hard on it. It's 10% of what I have. Once I had closer to 2, I wouldn't think much of it. 5% is something I should reasonably be able to spend if I'm not doing it constantly.

I haven't made a real plan before, and I currently don't have one. So let's go with a "There's a good chance that yes, I will go broke."

**Rickson9** · Sep 9th, 2010, 01:44 PM

I'm not doing anything different now than when I had no money.

For better or worse, investing hasn't been difficult for me. If I went broke, I would know how to make it all back.

I recognized that I was a bad entrepreneur when I was young so I stayed away from that. It was a lot of work. Instead, I was better at identifying good businesses so I just focused on that - and road the coattails of others. I didn't make as much money as the entrepreneur, but the benefit was that I didn't have to work hard.

I don't have any emotion tied to money. Money just "is". If I do certain things, money comes in. If I do other things, money goes out.

Speaking for myself, deals don't "get bigger" just because I want them to. Deals get bigger because I just have more money coming in. When I started in the mid 90s $1000 was a big deal for me.

I "made it" in my early 30s (I'm still in my 30s), but I don't work hard at all. Most of the work is done by the assets I own. I do relatively little.

I had more "toys" when I was younger, but I don't have many now because I don't find them as fulfilling as I used to I suppose...

**Russ H** · Nov 29th, 2010, 02:30 PM

Imagine if you had $10 MILLION, tax free.

(or, in the case of the story below, you got $14M, and paid your taxes, and had $10M left).

If you put it into 30 T-Bills back then, you would have had an income of about $500,000 PER YEAR (more than $40,000 per month).

And after 30 years, you could get your $10,000,000 back.

Read what happened to these folks, instead:

familys-fall-from-affluence-is-swift-and-hard: Personal Finance News from Yahoo! Finance

-Russ H.

**Rickson9** · Nov 29th, 2010, 03:24 PM

Originally Posted by Russ H

Imagine if you had $10 MILLION, tax free.

(or, in the case of the story below, you got $14M, and paid your taxes, and had $10M left).

If you put it into 30 T-Bills back then, you would have had an income of about $500,000 PER YEAR (more than $40,000 per month).

And after 30 years, you could get your $10,000,000 back.

Read what happened to these folks, instead:

familys-fall-from-affluence-is-swift-and-hard: Personal Finance News from Yahoo! Finance

-Russ H.

This was also discussed in the following thread:
A family's fall from affluence.

Best regards.

**MJDeMarco** · Nov 29th, 2010, 04:25 PM

Originally Posted by Russ H

Imagine if you had $10 MILLION, tax free.

(or, in the case of the story below, you got $14M, and paid your taxes, and had $10M left).

If you put it into 30 T-Bills back then, you would have had an income of about $500,000 PER YEAR (more than $40,000 per month).

And after 30 years, you could get your $10,000,000 back.

Read what happened to these folks, instead:

familys-fall-from-affluence-is-swift-and-hard: Personal Finance News from Yahoo! Finance

-Russ H.

Tales from the Sidewalk...

**Kdthelegend** · Jun 5th, 2011, 09:23 AM

My plan is to keep building multiple streams of income. I will take money from my primary source of income. Invest it in franchises, apartment buildings, basically any type of business that can generate money without me having to put alot of time into it. I will buy investments that create streams of income for the rest of my life. As long as I always know that I have cash flow coming in I am good.

My two primary businesses My Ebook Site and My Entertainment Company will give me the money I need to create these other streams of income. I will just keep building up my wealth I will mostly put my money into franchises and banking. I would like to eventually create my own bank. So I can have direct control of money.

As long as I keep on adding on income sources to my empire I should be good. I know how much money that I would need in order for me to buy certain things. Like in order for me to buy a million dollar house cash I would have 10 million in the bank.

**00N8** · Jun 5th, 2011, 01:05 PM

Originally Posted by Kdthelegend

I would like to eventually create my own bank. So I can have direct control of money.

Once you form a bank charter you must comply with various regulators like the OCC, OTS, US Treasury etc.

You may be surprised at how much control those regulators have on banks.

**AKN** · Jun 5th, 2011, 03:01 PM

For the envious...

15 Music stars that went bankrupt
15 Athletes that went bankrupt

My favourite tale of financial illiteracy/stupidity as seen on how the lottery changed(ended) my life:
- Man wins lottery, lends millions to 'friends'
- Buys large mansion
- Woman takes note of money mismanagement, offers to provide financial assistance
- Transfers title to herself
- Man goes missing, later to be found buried after being shot
- Police easily track the woman because of title transfer and throw her in dyke prison for life

I take pride in building a strong foundation and educating myself in all financial disciplines. Tough times don't last, and anybody who has been in the trenches and endured financial struggle, and are still breathing should consider themselves lucky as they are able to learn from mistakes and not make them twice. Achieving and keeping wealth through hard work and sacrifice is a very humbling experience.

**Andreas** · Jan 15th, 2012, 02:53 PM

Being satisfied with material possessions is hard. People must appropriate more what they have in order to not be hungry forever. This is a technique that Stoics (philosophers) have invented which helps people renew their passion for what they already have.

Visualize that you will lose it all. See that Ferrari burning down or crushing off a cliff, Imagine an earthquake smashing the house down. Try it and you will see that it has a therapeutic effect. I don't have a ferrari or expensive house but over the days i learned to just stay with the material possessions that i already have which still serve me well. I'm very young and i'm surprised to still see my parents wanting to buy new bigger TV every2-5 years. Or when they plead me to tell them what new mobile phone i want for Christmas. It seems strange to not want new 'things'

**Rickson9** · Jan 15th, 2012, 05:43 PM

Slowlane marketers are smarter than we give them credit for.

"Our enormously productive economy demands that we make consumption our way of life, that we convert the buying and use of goods into rituals, that we seek our spiritual satisfactions, our ego satisfactions, in consumption. The measure of social status, of social acceptance, of prestige, is now to be found in our consumptive patterns. The very meaning and significance of our lives today expressed in consumptive terms. The greater the pressures upon the individual to conform to safe and accepted social standards, the more does he tend to express his aspirations and his individuality in terms of what he wears, drives, eats- his home, his car, his pattern of food serving, his hobbies."

"These commodities and services must be offered to the consumer with a special urgency. We require not only 'forced draft' consumption, but 'expensive' consumption as well. We need things consumed, burned up, worn out, replaced, and discarded at an ever increasing pace. We need to have people eat, drink, dress, ride, live, with ever more complicated and, therefore, constantly more expensive consumption. The home power tools and the whole 'do-it-yourself' movement are excellent examples of 'expensive' consumption." - Victor LeBow, 20th Century U.S. Economist

**Pete799p** · Jan 16th, 2012, 09:02 PM

I personally love that there are so many slowlaners out there if there wasn't who would we sell our stuff to. When I see people who I know have no money go out and buy "stuff" because it seemed like a good idea at the time I see nothing but $$ signs.

Originally Posted by Kdthelegend

I would like to eventually create my own bank. So I can have direct control of money.

I am not putting down your dream but I wouldn't want to touch a bank with a 10 foot pole right now. The government has gone regulation crazy to the point where you have no idea whats going on now and even less about what they are going to do in the future. Too much red tape and better connected, deeper pocket players for me. I would be more of a private equity, hedge fund, VC guy until they over regulate them which they are trying to do as we speak. Plus these alternative funds allow more flexibility with your money allowing you to invest in almost anything you like.

On a side note I am looking to accomplish the same as you. I get bored easily and have always envisioned myself a serial entrep type.

**GlobalWealth** · Jan 17th, 2012, 07:08 AM

Originally Posted by Rickson9

I had more "toys" when I was younger, but I don't have many now because I don't find them as fulfilling as I used to I suppose...

I find this also to be true. At one point I owned 27 motorcycles at once. Yikes.

I also had a nice motorhome and a few cars.

Then I was asset rich and cash poor. I think it was a way to show people how successful I was.

Now I have eliminated all of the toys and focus on 'experiences'. I have a couple of businesses and and much more cash rich, but from outward appearances seem poor.

Its a bit ironic actually, but I think it is common that when you are cash poor you want to flaunt success but when you have 'made it' as rickson9 stated, the flash looses a bit of its appeal. At least for me anyway.

**GlobalWealth** · Jan 17th, 2012, 07:10 AM

Originally Posted by 00N8

Once you form a bank charter you must comply with various regulators like the OCC, OTS, US Treasury etc.

You may be surprised at how much control those regulators have on banks.

That depends on where you open the bank. In the US, yes you are correct.

But there are much better options for those interested in opening a bank.

**mmtprofile** · Jan 18th, 2012, 12:22 PM

I agree that you need a plan to spend the money but not to get worked up in that plan.

Many times people "lose" their money for psychological reasons like "I'm not good enough" or something like that.
I'm going to say this because it applies. If you keep a money management system 10-10-10-70 for instance and never break it, you will never go broke. The only time I lose money is when I break my rules.

Thanks for the post.

**The-J** · Jan 18th, 2012, 02:38 PM

To be honest, I don't care about material things. I mean, I do love exotic cars, but I'm not so passionate about owning one.

I don't think I would go broke by buying things for people or buying things for myself.

What I want to have (for myself)

1) A computer with Internet access (plus a 3 TB HDD)
2) A comfortable couch for me and guests to sit and lounge on
3) A kitchen with an oven, a stove, a fridge, a microwave, a dishwasher and a garbage disposal
4) Running electricity, water, heat and AC
5) A guest bathroom
6) A queen sized bed
7) My own bathroom with a shower
8) A bus pass, a bicycle and a small car like a Toyota that I use only sometimes
9) A girlfriend (got it as of today's posting)
10) A TV to hook up to my computer or to play video games on
11) A gym membership or a place for me to practice martial arts
12) A cell phone (doesn't have to be a smart; if I run into dire straits with money I'm gonna cancel my data plan and get a flip phone that only has texting and calling)
13) The clothes that I already wear in a closet or drawers
14) enough bookshelves to house all my books

To be perfectly honest, that's all I really want for myself. I don't like big houses. I like to travel, but not that often. I like to go out for dinner, but only sometimes. I don't need material things. I don't like getting gifts for Christmas because then I have no idea where to put stuff; I'd rather get, like, money, or go to a party instead. I don't drink expensive alcohol, I don't eat expensive food, I'm not impressed by the expensive things money can buy. When I get my exotic (if I even decide to get one) I'll have it for, like, a year and then auction it off.

Money changes people, but all I want is the freedom of choice, not the things, the babes, or the lavish parties. My dream house would look like my parent's house, to be honest.

**Motivated** · Jan 31st, 2012, 02:58 AM

[QUOTE=GlobalWealth;193139]

Originally Posted by GlobalWealth

Its a bit ironic actually, but I think it is common that when you are cash poor you want to flaunt success but when you have 'made it' as rickson9 stated, the flash looses a bit of its appeal. At least for me anyway.

So damn true