03/11/2017
DOES MONEY MAKE YOU RICH?
The answer is No. Money alone does not make you rich. We all know people who go to work every day, working for money, making more money, but fail to become richer. Ironically, many only grow deeper in debt with each dollar they earn. We have all heard stories of lottery winners, instant millionaires, who are instantly poor again. We have also heard stories of real estate going into foreclosure. Instead of making homeowners richer, more financially secure, real estate drives homeowners out of their homes and into poor house. Many of us know of individuals who have lost money investing in the stock market. Maybe you are one of those individuals. Even investing in gold the world's only real money can cost the investor money. One man began investing in gold before he began investing in real estate. In 1973, he began buying gold coins when gold was approximately $70 an ounce. By 1980, gold was approaching $800 an ounce. The frenzy was on. Greed over took caution. Rumours were that gold was going to hit $2500 an ounce. Greedy investors began piling on, buying gold, even though they never done so before. But instead of selling some of his gold coins and making a small profit, he huge on, also hoping that gold would go higher. About a year later, as gold dropped below $500 an ounce, he finally sold his last coin. From 1980, he watched as gold drifted lower and lower til it finally bottomed out at $250 in 1999.
Although he did not make much money, gold taught him many priceless lessons about money. Once he realised that he could lose money investing in real money, gold, he realised that it was not gold, the asset, that was valuable. It was the information relative to the asset that ultimately made a person rich or poor. In other words, it is not real estate, stocks, mutual funds, businesses, or money that makes a person rich. It is information, knowledge, wisdom and know-bow a.k.a financial intelligence, that makes one wealthy