I Grew Up Rich: 6 Money Lessons I Learned After I Lost It All
I Grew Up Rich: 6 Money Lessons I Learned After I Lost It All
G. Brian Davis Sat, June 29, 2024
An oft-cited statistic states that 70% of wealthy families lose their riches by the second generation, and 90% lose them by the third.
Why? Because the first generation earns it, the second generation spends it and the third finds itself back at square one.
It turns out that earning money and shepherding money long term require two different skill sets. All too often, no one in any of those three generations learns how to protect and grow wealth long term.
“I grew up in a wealthy family where my grandfather was the chairman of the largest textile processing mill in our city,” explained Muhammad Ali, sales director at George Digital. “Our business, established in the 1950s, was a significant player in the industry from 1970 to 2001 … However, our fortunes drastically changed, and by 2012, my father’s income dwindled to just $300 a month.
“In 2013, amidst our financial crisis, I developed an interest in programming. Unfortunately, we couldn’t afford a laptop, and we had to live with my grandparents, along with my father’s brothers and their families. This challenging period taught me several invaluable lessons about money and resilience.
“Eventually, I was the first person among my grandfather’s children and grandchildren to get a chance to study in the U.S.
“Here are some key money lessons I learned after losing it all.”
Diversify Your Income Streams
“Our family focused solely on the textile business, and when it failed, we had no backup.
“In 2015, I came across Russell Brunson’s book ‘DotCom Secrets,’ which sparked my interest in an online business. By September 2016, Adam C. Miller introduced me to the world of digital marketing. Despite the lack of resources and guidance, I persevered, slowly learning about digital PR … I also delved into local SEO (search engine optimization) and e-commerce business models.
“After our family’s textile business shut down, there was no one to restart the hosiery textile business. However, years later, I decided to reignite this passion to continue my family legacy and started Molani Enterprises, a textile sourcing and trading company. Alongside my ventures in PR and e-commerce, reviving the textile business was a way to honor my family’s history and rebuild our presence in the industry.”
Maintain a Financial Cushion
Everyone needs an emergency fund. Whether you keep two months’ or two years’ worth of living expenses in it depends on how stable your income and expenses are, but you need that cash cushion to carry you through the inevitable nasty surprises that life throws at you.
“Always keep cash savings to cover basic living expenses and emergencies. This reserve should not be touched for business investments. This lesson was crucial for me, as I witnessed bad financial decisions during our business downfall, where more money was sunk into a failing enterprise.”
Seize Opportunities
They say that when an opportunity knocks at your door, it does so dressed up like work.
To Read More:
https://www.yahoo.com/finance/news/grew-rich-6-money-lessons-210008891.html