Do you feel there is any difference between these 2 sets of people. The old rich are those who have majorly acquired their fortune from their ancestors. They were born with it and they have seen it all. As it is said being for some of them that they are born with a golden spoon and when there is something that is always been in your life then there is no fascination about it. Whereas the new rich, they are not born with fortunes and wealth, they have acquired it with hard work and years of struggle, and for them it is a new feeling, a new status in the society.
With the new rich there can always be a problem of not staying grounded if the wealth has come in easily. They can become frivolous in their spendings. Just imagine if you have invested only 10K $ in crypto and you hit a jackpot coin which gives you 50x or 100x and you earn over a million dollars. How would that person handle this fortune and success.
I have been reading about some of the lottery winners. They were poor, with their sheer luck they earned a big fortune in a lottery and a lot of money came in suddenly in to their lives. They probably were not ready for it, and did not even have the knowledge of how to handle that fortune. Most of them start spending money on things that they were deprived of and they were fascinated about, like and expensive car, watch, splurging on exotic vacations and eventually just in a couple of years they are again from where they originally came from. This is for fact and just not a story. You can read about some of these lottery winners' eventual faith. They were the new rich and they did not know how to handle that status.
Whereas if you give this amount of additional fortune to a person who is already born with it, they will think of investing that money in their business and further growing it. For them they have seen it all, so it's not something new for them. I am not saying all New rich land in to same position. There are more success stories then failures. The point is that if you are on the road to becoming rich, do some groundwork of how you are going to manage those finances, what is the plan ahead. How will that money multiply and not diminish.
My father told me once, that if you want to raise your family status, one generation has to sacrifice. He told me he could not do it very well, but probably I could, and yes to an extent I did. But what if after all those efforts I am not able to handle it well, then probably I am going to leave nothing for my generations down the line. I watched this reel of one billionaire from India now settled in Dubai, from a very humble background but now a billionaire, living a life that some of us can only dream of. He came up in life with his brains and hard work. The interviewer asked him, that he has such a lavish lifestyle, does that mean that he is spending all his money on showing off his extravagant lifestyle to people, just because he came from a very humble background. His response was, that I have raised myself very high, and what I spend on my luxury is just 4 to 5% of income. And he advised that to everyone, whatever your earning is spend only about 5 to 10% on your desires and reinvest the remaining 90% back in your business for it to grow further. And I am sure with this approach he is growing up more and more in life.
Money is fluid and it can easily slip off if not taken care off. While the old anchors their heritage it is the responsibility of the new ones to start building their heritage.
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