- March 29, 2013
- Posted by: admin
- Category: blog, Career Coaching, daily lfe, Job Seeking Tips, Technology, Uncategorized
Are you prepared for your New Years Resolution coming true for 2013!
Most business minded americans made a business/financial New Years Resolution a few months ago when the world celebrated 2013. It probably went like this, “I want to make millions this year”. That is a great goal and for someone and this goal can come true. Honestly, it WILL come true for someone this year. The questions then becomes, what happens when it does? I read a very interesting article about wealth and windfalls. All I could think about was my children and the legacy left behind, not money or material things. Interestingly enough, the statistics took me by surprise and I began to evaluate the lessons I have learned about success over the years.
The article I read was a study done on individuals who come in to wealth or receive financial windfalls in a short amount of time. It was segmented in to two groups. The first group was Lottery Winners. 70% of all lottery winners blow their winnings within a few years. On top of loosing their sure fire retirement, personal relationships will also be ruined along the way. The problem is understanding how money works and being prepared for the sudden increase of wealth can be overwhelming. For the novice, it can be down right painful if it isn’t handled correctly. Just the other day, the news reported a lottery winner who turned up dead shortly after his winnings. The sudden death has recently been ruled as a murder.
Wow — talk about scary. That is why I would much rather fly under the radar of any short windfall notice. In other words, you would never see me on TV with a big check unless I am on the 18th greens of Quail Hollow after winning the Wells Fargo Championship.
The second group is New Generational Wealth. The article mentioned that 90% of new wealth created within a family will be all gone by the third (3rd) generation. Now think about that. Even if you find success in your current endeavor, three generations removed will probably never benefit from it. That is why professional athletes are so misunderstood. They are worshiped for their physical abilities and amount of millions they make throughout their career. The truth is, over half of them are broke within five years of retirement. Keep in mind, most professional athletes don’t have careers over 5 years (pending the sport).
Oh no — say it isn’t so? Well it is so. Three generations is not a long time from now. Your great grandchildren are in trouble if the statistics are true. (And they are).
One of my mentors has generated wealth over decades of hard work. His net worth is well in hundred million dollar range by now. I learned a great deal from him about wealth. The biggest thing was how he, and many like him, train their children to be great stuarts of the financial blessings they will inherit. After spending years with him and watching his children grow, you can tell that the millions will be passed along to their children’s grandchildren with great care. This was one of the best lessons I could have ever learned especially in a society where Pastors drive Bentley’s, Ferraris are the new BMW, Net jets is the new First Class, women spend thousands on shoes (they only wear once) and men will spend $500.00 for the latest sporting gear for their son to wear on his little league baseball team. How, smart is that if your not abundantly wealthy? However, its not about what you spend your money on, but how smart you are with your money when you spend it. Meaning, there are only a few who are truly lucky enough to spend excessively without worry. The rest of us have to manage how we spend to some degree to ensure the future for our children. So, if we get outrageous with spending windfalls that we do receive, our children’s grandchildren will never see the fruits of our success.
For those lucky ones who will find their dreams and goals coming true in 2013, ask yourself right now if you are prepared? Don’t outsource your obligation to some accountant or advisor to tell you how to manage your money. Prepare now for the good fortune. Study, research and visualize how you plan to manage and then teach your children how to manage the wealth for generations to come. You don’t have to be a multi-millionaire to build a secure future for your children to inherit.
A good friend who recently retired from the NFL told me that people will manage their money the same no matter how much the amount is. What he was saying is, how you spend $100.00 today is the same as you handle $100 million tomorrow. If you are smart with $100 you gain, you will be even smarter with millions. He was right on with his philosophy. He was very smart with his money and shared stories of fellow players who spent millions on depreciated items like cars, boats and planes. That is how many of them become statistics.
Don’t be a statistic this year. Enjoy your blessings, but teach your children how to “keep the fortune”. Their children’s generational wealth depends on it.