Wealthology by Akinaw Bulcha

Author:Akinaw Bulcha [Bulcha, Akinaw]
Language: eng
Format: epub
Publisher: Akinaw Bulcha
Published: 2011-02-16T05:00:00+00:00

Part III

The Secrets of Capital Management

Riches to Rags

Dear Kidus, Wealthy people are not just born, they‘re made. Even if some of them inherit their wealth, preserving it takes some skill. To get the most from the following letters, you must realize that 90% of capital management is the preservation of capital; the other 10% is growing it.

The rich create their riches through wealth consciousness—by learning the art of building and preserving wealth. Building wealth is an art that must be learned through experience and education. It rarely, if ever, just comes naturally. One of the most fascinating things about self-made wealthy people is how important a role an entrepreneurial parent played in their success.

If you were to pick up a copy of Forbes magazine‘s richest people list, you‘ll notice 9 out of 10 had entrepreneurial parents. This shows that wealthy people pass on more than just money—they pass on the knowledge of how to make it and keep it.

Of course, every other social class passes intellectual capital from one generation to another. The talk around the dinner table of a welfare family is how to get more welfare checks. Middle class families tend to talk about getting jobs or job security. The wealthy, on the other hand, talk about business, investing or politics.

Just like animals, human parents teach their kids how to hunt different types of prey. Whether a child learns how to apply for welfare or how to start a profitable business, they‘re getting an education—they‘re receiving capital. They earn an amount of interest that corresponds to the skill or know-how they‟ve learned from their parents or their environment.

Wealthy people, for example, don‘t outsource investing knowledge to so called ‗experts‘. Instead, they learn what to do with their money as they grow up. Kids of poor parents, on the other hand, don‘t learn how to handle money or understand how to value assets.

If you were to give a million dollars to someone who‘s never had money training, you can be sure it‘ll be blown away in a heartbeat. Lottery winners, for example, usually find themselves back where they were within a few years. Or better yet, think about former boxing champ and exmultimillionaire Leon Spinks.

Below is a Boston Globe story about him titled, ―Riches to Rags.‖ As you read this short story, see if you can recognize a trend: ―The years have been tough. Spinks got divorced and lived briefly in an East St. Louis shelter. He was a greeter at Mike Ditka‘s restaurant in Chicago. He says he helped start a gym in Detroit and did odd jobs in California. Now he cleans the local YMCA for $5.15 an hour on weekends, sometimes unloads trucks at McDonald‘s, and volunteers to help the homeless. The Champ also likes his second job at the local McDonald‘s. ―I get 50 percent off on Big Macs and everything,‖ he said. Spinks also goes to several autograph shows each year. Three of Spinks‘ sons followed in their father‘s footsteps and became professional fighters. Leon, the eldest, was murdered in St.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.