It is not how much money you make that really matters.Â I’ve know many people that make millions and a vast majority of them are broke.
How can that be?Â Easy.Â Spending more than you make.Â I saw an entire group of financial advisors living very well and then after one particular investment went under they all were instantly broke.Â They took out enough to pay for their lifestyle but when the investment tanked they instantly couldn’t pay for their mortgage, car payments and lifestyle.Â They were homeless in a month.
So the only thing that matters is your net profit.Â Nothing but net.Â Only thing that counts.
I think people that make less money but actually invest (diversified) and save money and look at their net profit are much more business savvy than people that make tons but spend it all.
That is why the people that blog about their toys and such really don’t thrill me at all.Â I’ve seen so many people that do that and found out later that they were spending everything and a lot of the time on credit to look good for marketing purposes but are broke and up to their eyeballs in debt.
I know quite a few stories but can’t recount them here because they are people I know very very well and I don’t want to embarrass them.Â You would be surprised even shocked and their business would tank.
Bottom line, don’t look up to people and expect them to be perfect.Â Look at your bottom line.Â Look at your net profit.Â What is working for you?Â Don’t over spend but also don’t be cheap.Â Money attracts money.Â Spending money attracts people spending money.Â But going broke attracts somethings you don’t want.