Being wealthy is not the same as being rich. If we were to take a room full of random people, and give each a million dollars, that does not make them wealthy. Within six months, many will have lost the money. Within two years, most will have lost most of the money – and only a few would have ended up with more.
Why is it that so many people who inherit a fortune or win the lottery end up losing all that money and end up back or even further back than where they started?
Why is it that so many of us continue to work so hard, earn so much and still have so little to show for it? There is a peculiar paradox that many of us come across as we make more money. This paradox ensures that being ‘rich’ without having built wealth remains a terribly temporary condition. We call this the wealth paradox:
The Wealth Paradox:
“The more money you have, the more opportunities you have… to lose it.”
Losing money is not a problem when you don’t have any to lose, but as we find ourselves with excess cash (or debt), many new opportunities open up – and we spend it or invest it in areas where we have little experience and little idea of the pitfalls ahead. Our confidence exceeds our competence, and the money disappears.
So why are we so busy trying to make money when, after we finally get it, we’re likely to lose it anyway? Even more frustrating, why is it that for people who we would consider wealthy, no matter how much their money or business gets taken away from them, it comes right back again?
The Wealth Paradox separates the temporary nature of money with the permanent nature of wealth. Whatever money you have, it will eventually fall – or rise – back to your level of wealth. This leads us to the definition of Wealth used in Wealth Dynamics. It is not about making money, but about creating wealth. Having a clear definition of wealth is not just useful but necessary if that is our focus. As a result of the Wealth Paradox, we cannot simply equate wealth to money. So if wealth is not how much money you have, what is it?
Definition of Wealth:
“Wealth is not how much money you have. Wealth is what you’re left with when you lose all your money.”
Growing wealth enables you to continuously attract money and opportunities in the same way that growing a garden enables you to continuously attract the birds and butterflies.
Wealth Dynamics is a comprehensive and innovative personal wealth creation tool that:
- assists people in their private lives as well as business owners understand their approach to wealth
- identifies individual beliefs in wealth and success
- describes a pathway for growth in business and with financial goals
- allows individuals to move towards the person they would choose to be and live life at the level they believe reflects their desired outcomes