How To Stay Rich!
How To Stay Rich!

If you want to stay rich, you need to do things differently. Wow! “are you saying that I have to do things one way to get rich and then do different things to stay rich?” you may ask. The answer is Yes, to get rich you basically must focus. But to stay rich, you have to diversify. It’s well-known fact that the strategies that brought you the initial wealth will not keep you there.
To illustrate this point, let’s track the normal steps of an average millionaire. He started a business, failed miserably, and then, later on, decided to try again. He failed yet again. Three years later, he made another attempt. This time, he was a lot wiser after the two failed attempts. And to all you know, the money started to roll in. He hit the big time and is now a bona fide, true blue, real-deal millionaire. In fact, he’s so big that he even made the cover of a business magazine. A whiz kid in business - the headline screams. All that initial failures made the success all the sweeter. He’s enjoying life and all the C’s that money can buy — cigars, condominiums. clubhouse and C class Mercedes.
But our friend soon gets sloppy. He thinks that the good times will roll forever. But in the background, his competitors are sharpening their knives. And more importantly, advancement in technology will soon revolutionize his industry. But our friend is oblivious to all that. His head is in the clouds and now believes that he has discovered the secret to eternal wealth, not realizing that all he found was how to make money from that one business. Not unlike many self-made men, he’s too much in love with the creator. And then one day, the world around him change. His competitors are running circles around him while the latest gadgets have rendered his product obsolete. Sales plunge to near zero. the good times, for all sense and purpose, have come and gone. Our friend is back from where he started. Back to ground zero, or even worse off. No money, no business, and no friends. And in the far distance, the radio is playing, “Love doesn’t live here anymore.”

Unfortunately, this is not an uncommon story. Far too many people have gone through this exact experience. Too many that even changing the names will not protect the identity of any of the players here. Actually, it would be so funny if real lives were not at stake. But when you see real-life people losing the shirts on their backs, families broken up, and friendships shattered into thousand pieces, it becomes all too real.
The sad thing is that it does not have to be that way. It does not have to end tragically. Our hero can ride into the sunset and this tale can still have a storybook ending. But for it to have a happy ending, it is obvious that the plot of the above story has to be changed. Firstly and most important of all, we must remember to keep an even head. After making the big money, we must realize that we do not know it all. All we discovered was just one way of making money, and nothing more. For starters, it does not mean that we will be able to hang on to the money. In other words, we have not obtained the A.P. (Approved Permit) to stay rich forever yet.
Of course, this is easier said than done. When money is coming from left, right and center, it can be difficult trying to keep your sanity. It is too easy to lose perspective when everyone is bending over backward to hand you money. But if you want to remain wealthy, you have to keep track of reality. You have to remember that nothing last forever. Especially in business. Products come and go, fashion and taste change and technology has always rocked the world. Just like, the vinyl record, replaced by CD, and the typewriter, replaced by the computer. So even if you are rolling in the dough like nobody’s business today, it is certain that it will not remain that way for long. And in today’s world, “for long” is way too short for comfort.
Now that we know this, we will see why it is critical for us to see things differently if we all want to remain wealthy.
The second thing that we should do is to spread that money into different investments that will ensure that we will remain rich no matter what happens. We need to spread the money around so that we will remain wealthy no matter which way the ball bounces. This may mean diversifying into different product lines or even businesses. However, many will be uncomfortable doing so because it is against conventional wisdom. We are doing new things, treading into new and untried territory and perhaps even opposite to what we’ve been doing all this time. But this is what you have to do to ensure that good times keep on rolling.
The third and very critical step is to store some of the money in the safest, most boring, and most conservative investment you can find — the fixed deposit account or even government securities. The rationale for doing this is simple — to ensure that we remain wealthy. Because these investments are rock solid, they will be around no matter what happens in the outside world. Recession, depression, stock market crash, property crash, change of government — the money will still be there.

If you have $5 million, how can you go wrong by placing some of that money, say, $1.5 million in the normal fixed deposit account. While you may not make fantastic returns by doing so, consider this for a moment: if you plow all $5 million back into your business, you may, of course, reap significant gains. Plenty. But what happens if your business collapse? Remember that nothing last forever. Now, you have nothing left. The business has gone, $5 million gone.
But if you have placed $1.5 million in the fixed deposit, you would still remain a millionaire. And just as important, your lifestyle would still be very much the same. Same big house, same big car.
We all have to do this if we want to become rich and stay rich. After all, everyone wants to be a millionaire forever.
That’s all for now, my friends. See you all in my next article.
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