One of the most “impactful” and rewarding feelings I get is having conversations with people close to me who are listening to my podcasts. I never start a business hoping for people close to me to get on board early because that is limiting, but when they do come around organically that is a good feeling because they aren’t SUPPORTING me but they actually VALUE the content.
These people are those who may have thought there was no hope for them. They might have gone to jail early on in life and are now effectively kept on the outskirts of the job market. They may not have finished high school and have limited job prospects. These people are finding hope in the stories of the people on my show.
Given all this, I was taken back when someone today mentioned that their goal was to win the lottery so they could obtain wealth. I immediately had the hand over face meme. Like have you heard ANY podcast guest mention the lottery? This blog will discuss why playing the lottery will keep you poor, why it kept your mama poor and why if you aren’t careful that lottery thinking and habits you pass down will make your kids poor.
You don’t learn how to create wealth, preserve it or pass it down
So you got five million dollars but what did you learn? Did you learn how to delay gratification? Did you learn how to save and invest? Did you learn how to acquire? What did you learn?
The problem with those who win big sums of money is they skipped a lot of steps and landed on a bunch of money. Money that will soon be gone; hopefully they wont go bankrupt in the process with debt follows them after the money is gone.
A lot of people think money is the solution but money that falls on hands of the foolish is money soon gone. This is obvious when you see folks get huge tax refunds and subsequently go broke. Or athletes who get big checks and do the same (buy three rolls royces). There is a process of learning that has to take place if you are not only going to get wealthy but stay wealthy. Lottery winners always end up being lottery losers because of that gap.
Since you didn’t learn how to create it you have no knowledge to pass down
A lot of people put a lot of stake into the fact that Donald’s dad gave him $1 million to start his own business but what they don’t see is that the knowledge, exposure and equity in the last name (this is a bar in itself) were worth more than that $1 million. Donald Trump would have gotten the money with or without the loan from his father.
The true value was what he was taught by his dad. The true value was the example set by his dad.
On the flip side, if your kids see you sitting in the house, passing over opportunities, hoping on the big check to fall from heaven what do you think they are going to do? They are going to grow up and do the same thing. We don’t become what are parents say we become who they are. I can’t explain why that is but it is what it is.
You owe it to your kids to build wealth not sit around hoping some one dollar ticket is going to do the heavy lifting for you. WHY? This line of thinking isn’t just applied to the lotto, it starts being how they view the world. They start looking for a something for nothing in their marital relationships, on the job, at the restaurant, at the financial aid office. I know a lot of people who something for nothing everything. I hate those people. LOL.
That’s assuming you actually win
Most people play the lotto their entire life and never win a dime. They buy ticket after ticket and maybe they win a few hundred here or there but they never win big. Same is true for people who go to casinos. They don’t build those huge buildings off hotel revenue, it comes from all the losers who though they would get something for nothing.
Same is true with the lotto. Where do you think they get the money to pay out those big jackpots? From all the losers.
The problem is you can’t get that time or money back. That money could have been put into a property or some stock. If you put all the money you put in the lotto into your brokerage you would still have it and it would have flipped several times.
I am binary. I am not a “why can’t we do both” type person. We are either building wealth or buying lottery tickets. You need all the focus you can get on your asset column and all your time and money focused on that asset column, period! No wavering, no grey not “boff”.
I am always leery of free stuff and something for nothing.
Free stuff and something for nothing always comes with a catch. In the lotto that catch is the fact that the odds are better that you will get struck by lightning than win the billion dollar jackpot. There is a better use of your time and money.
The lure of free lets the lotto take your money and give it to the winner and net the money over and above. Its an amazing business strategy if you think about it. They just pass your money on over to the loser. All they have to do is market and make that easy money look appealing.
If you are able to get something for nothing or use something for free that means YOU are the product. Facebook sells your data, google sells your attention, the lotto sells YOUR money.
You don’t have to get rich
Most people are aiming for wealth, and financial freedom when reality all they need is financial progress and a good nest egg to retire on. Many are swinging for the fences when really they need to focus on a few good base hits. Base hits that if they focus on are a sure bet as opposed to the long shots.
Example, yeah 5000 units is great, but if you had 10 solid units you could quit your day job and focus on other things. What happens is people dream of their 5000 which requires huge action that is likely above their pay grade (in their current state of no units) and they end up with no units. The key is that action creates opportunity. If you get those few units you can then get to 5000 units. Our few deals in the Midwest give us the ability to enter the room and discuss Cali flips in the IE which will lead to the big money of Newport Beach flips. *birdman hand rub*
Another example is the person thinks they need to buy a luxury town-car with all the bells and whistles to start their car service when in reality all they need is to drive their own car for uber and reinvest the gains. One gets you started, the other gives you an excuse for inaction. I can go on and on with the excuses and good reasons I hear but nobody got time to dwell.
We put rich people on a pedestal but forget that pedestal. Rich isn’t the goal, freedom is the goal. Freedom is easier to attain and a much more realistic goal than “rich”. One property is better than no property, progress is better than perfect inaction. Stop buying Gucci and trying to look like the rich! (that last sentence didn’t really flow but it had to be said).
Most people don’t focus on wealth, the focus on that easy money and they spend their whole life Passing Over Opportunities Repeatedly (POOR). Opportunities come dressed in overalls and look like work so I get it. Work will set you free though. If you can just switch your mindset toward the work and away from the easy and the play play you WILL change your family tree no ifs and’s or butts about it. A lot of people say that I was privileged, they don’t say that my mom worked a full time job and became a CPA at night, they don’t say that my dad worked a full time job and a part time job until he didn’t have to work the full time job….. that is privilege America, the privilege to WORK your face off and get what you want.
In other countries no matter how hard you work if you weren’t born into the right social class you are stuck. That is privilege. Immigrants get this and immigrants (especially African immigrants) win. We think that privilege in America is the something for nothing and for their heirs maybe that is true but if you look down that line there was someone who put in the WORK to get that something for nothing for their heirs. If you are in a situation where nobody put in that work for you guess who gets to work for the privilege for their heirs? YOU.
That said, if you want to take action and become rich, not sit around hoping you get your numbers called, come to Todd Capital! We would love to have you. Email email@example.com to join our club today. Also, ask us about our tax preparation specials. We have hugely qualified partners and staff who want to help you!
Be great, invest well,