If they give you $1 million the first thing that will come to your mind is you will be financially free and you don’t have to work for the rest of your life. You think all you have to do now is to keep spending money and this is the same thing that most lottery winners thought. There is always a belief in your mind when you receive a huge amount of money that you are free and also comes to your mind that you are rich.
When we look at $1 million on paper, it is a lot of money and there was a time where having $1 million in your account set you free for the rest of your life but things have changed. $1 million doesn’t make you a rich man it just takes you from a lower class to a high middle class. You are not rich, You are not also poor. What $1 million can do for you 50 to 60 years ago is different from what you can do for you now. When you are classifying people who have $1 million they are in a middle class and need to spend that money wisely or you are going to go broke in no time.
psychology plays an important role in money management
Immediately, you have the belief that you are very rich There is always constant pressure to buy expensive things because we are all humans. We all love to show the world that we are comfortable and we are rich. Not only that, we want to also feel important, we want people to treat us with respect. When you have to believe that you are rich, you are most likely to spend a lot of money on expensive things just to feel important and if care is not taken in this process in a year or two $1 million will disappear.
When you build your money brick by brick you will understand that it is hard to build and it is easy to lose it all because while you are building, you must have made some mistakes, and experience would’ve told you that in this era it is easy for you to blow hundred million dollars talkless of $1 million. Winning a lottery will not give you such experience, so you won’t be mentally ready and also mentally fit to handle such money. You are mentally going to be on the buy side. You always want to buy without thinking about how to multiply the money.
Is not enough
I know some people who will tell you that they will cut all their expenses and will use that $1 million to fund their lifestyle and this will enable the money to feed them for the rest of their lives but what they don't factor in is inflation and how your basic needs get expensive every year and how your $1 million today with not be worth $1 million in 10 years. How you might not even be spending a lot of money and your money will go down quickly because you’re basic needs getting more expensive.
Thanks for your time.
