Article: a million dollars doesn't make you a millionaire

We've all heard the stories or even known someone who has won the lottery. He or she has pulled the right numbers, and from one day to the next, they are a million dollars richer. A year later, or even the same year, magically, that same million dollars vanished. 

Everything is spent, and these people often end up even poorer than before. How could this happen? Many people say, "That wouldn't happen to me; I would spend it more wisely." According to Jim Rohn, he's not so sure about that. 

Winning the big lottery ticket often ends up being a poisoned gift, 95% of people just can't manage it.

Buying a big house or a fancy sports car without taking into account the extra cost that comes with their new lifestyle. Because of that miscalculation, their expenses far exceed their income, and as stated before, they end up broke or even worse than before. 

A wealthy person stays wealthy because of the skills he has acquired throughout the process of earning his wealth. One of the most important transitions they make is changing the habit of spending to investing. Let your money work for you by buying assets instead of liabilities. 

'If all the money in the world were distributed equally among everyone, it will soon end up in the same pockets'

People have often imagined what the world would look like if money could be 'fairly' distributed. To understand that this won't work, one must look at the core of the situation. At the basis of money distribution lies the habit of spending. 

Companies earn money because of the ways people spend their money, hence, the poor get poorer and the rich get richer. People just love to blame others without first looking at themselves. 

In the economy, we get paid for the value we provide to others. Thus, a company that provides goods or services has a greater economic output than someone who works a nine-to-five job for a company.  If you aren't able to make that million dollars, you've just won, create more output... Guess what? It will diminish. 

To tackle this problem, one should become what is called financial literate. Study economics, money flows, company statements, business law, etc. First, try to earn small amounts, reinvest, and put that hard-earned money to work for you before spending (large) parts. Over time, as your skills grow, the value you add to the marketplace will grow, as will your income.

The key here is to primarily work on yourself. 

'To develop an above-average income, you have to become an above-average person.' - Jim Rohn

Most wealthy people had to learn this the hard way. Before acquiring their generational wealth, they often lost everything, sometimes even more than once. But because they earn it through their skills, they over time learn to manage their money in better ways. This results in exponential growth, both in value and economic output.

Learn from the greats in financial history as they have written down their own mistakes, lessons and practices that helped them attain their levels of greatness.

Financial success is a slow process, and one shouldn't focus solely on making money grow but rather on growing yourself. Learn to plan long-term, and when starting a venture, see what you can become in the (not so) distant future. Making a quick buck, just like winning the lottery, has proven to be unsustainable over time. 

Improve your value and invest wisely to make sure that you are one of the few who can keep their million(s) over time!