The Wealth Pyramid That Will Shift Your Money Mindset
Rich people spend — Wealthy people build the pyramid
In 1999, Mark Cuban sold his company Broadcast.com to Yahoo for $5.7 billion in stock. Most people would be on top of the world after such a move, but something was bothering Mark. He could sense that the Internet bubble was about to burst, and he was contractually obliged to hold on to his shares for 6 months. After a long and painful wait, he sold every single one of his shares and netted $2.5 billion in cash. Over the next 18 months, the stock lost 95% of its value, and had Mark not sold, he would have been left with “only” $125 million.
Rich people make and spend money, wealthy people save and invest it. In other words, rich people are rich now but could easily go broke if the wind changes direction, while wealthy people have multiple streams of passive income to ensure a solid financial foundation no matter the weather. They most likely will never have to worry about money again.
Whether you’re looking at your next-door millionaire with 5 income streams or a billionaire like Mark Cuban, true wealth is almost always based upon the same 4 core principles, followed in a specific order, and creating a positive financial synergy when they all come together at the top. I like to think of this equation as a 4-level…
