is all in the form of cash in a vault somewhere. They seem to think that if someone's net worth is 60,000,000 bucks he has that much money in available cash somewhere. They don't realize that maybe the guy may not have $10 in his pocket and he can't buy lunch today. His money is in assets. In order for him to round up any serious amount of cash he has to sell something.
When the liberals (who don't understand anything economics or finances) start talking bout taxing the rich they don't know what they are talking about. They seem to think that they can just hand J. Poopley Potts a tax bill and he'll reach into a safe somewhere and pull out a gigantic wad of cash and hand it over to the tax collector. The smarter ones think he'll just write a check.
They don't seem to understand that, for example a middle class guy's net worth includes the house he paid off over 30 years and that he's still working away at the salt mines making a basic paycheck.
In fact one of the primary ways a working still can accumulate wealth is through his house and even that's somewhat of a crap shoot. Over time homes can lose value. They're subject to the market just like everything else.
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Then you have cash mentality which sometimes I call pimp mentality. The believe that their net worth is what they have in their pocket. I also call it poor people mentality because they they will be poor their entire life.
These are the people that will win, say a million bucks in the lottery and be broke a year or so later with a pile of broken down year old cars and other stupid stuff to show for it.
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What's interesting is how many people that actually are well -to-do
run around in basic simple automobiles and walk out to them wearing Walmart sneakers.
As near as I can tell, the reason that lottery winners end up broke, is that financially smart people do not 'play' the lottery. If, in your poverty, you thought that buying a $5-10 ticket with essentially zero chance of a return on investment was a good idea, then your mindset is not going to magically improve with 6-8 extra zeros in your bank account.
ReplyDeletePerhaps this is also why second generation wealthy people are rarely successful. You really need to learn how to be poor, before you can know how to properly be wealthy.
ReplyDeleteEither that or raised to be able to handle money. There is a fine art to living on short money and staying afloat. Some people can do it and live well and get educated. I think it's a cultural thing to ssome extent, actually
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