While becoming a millionaire is normally seen as the hardest step into becoming financially free, keeping your money and avoiding going back to zero is normally the hardest.
We have heard hundreds of stories of how people made millions, even billions but slipped back to poverty in just months or a few years.
Therefore, learning how to make millions is one thing, but mastering the art of keeping that fortune intact is a different task.
So it doesn’t happen by chance that the rich stay rich while others are getting rich and then tumbling back poverty even after making lump-sum amounts.
Below are some of the reasons why those who understand money never lose it.
1. Multiple streams of income
Show me a millionaire who has only one source of income.
Millionaires having multiple streams of revenue is no accident. They know the right strategy. Having only one source of income is like sleeping with a snake. You have to be awake all the time, and worried.
Once you make your money, use it to your advantage by reinvesting it to generate even more income.
2. Monitor Spending
Just because you made a lot of money doesn’t mean you can spend it any how. Rich people understand wants, needs, and luxury. They budget just as much as everyone else when it comes to controlling their lifestyle.
3. Leverage Debt to Their Advantage
The wealthy understand the difference between the kind of debt that weighs you down and the type that builds a fortune.
For example, the rich focus on using leverage by getting things such as mortgages, Torres said. A mortgage allows you to own a property that you hope will grow in value.
4. Live below your means
Living below your means keeps you from falling into the trap of lifestyle creep. No matter what good fortune visits you in life, do not change your standard of living.
Don’t supersize your life by buying things you only want in the moment and you’ll find you’ll be able to afford everything you need.