FBC – 234 – This is exactly why you WILL go broke…

This is exactly why you WILL go broke…

Today, I want to tell you about the reason why YOU will most certainly go broke…and it's probably not what you think. See when we look for the safest way to protect our assets and money, we always look at the problem from the wrong angle.

There is a threat that's far greater than all of them combined and for some reason, we completely ignore it.

Well, that stops today! All the answers are inside this episode

Today I wanted to talk to you about something I've been reflecting on because this is something I really don't understand or at least the idea.

So how do people go broke? You hear stories about these athletes making 30 million dollars a year. And three years after they retire, they go broke. We've all heard about stuff like that. And the first reaction is to say, dude, they're idiots. The dude's an idiot.

I will never do that kind of stuff, which, you know, to be honest, is my first reaction as well. When I see someone who blew that much cash and stuff, I'm like, dude, what were you thinking? I'd never do that. But here's the thing. You don't know if you’ve not been in that position.

So the usual suspect is the lack of financial education which plays a big part. If he had some financial education you know, how to protect your money and stuff like that. But that only protects you against, I would say, the minor threats.

But there is a major threat that this it's not going to protect you from. And this is actually the main problem. Obviously, you need financial education. But from where I'm standing now and after analysing the situation, I’ll tell you my opinion.

Even people with financial education can go broke because of this. I've been watching videos about hip hop artists and it's called the Rules of the Game or something where they were explaining how these people get into contracts and they end up selling pretty much all their music for their entire life to majors.

So there is some small print that you need to read, go see a lawyer and blah, blah, blah. So that was the topic of the documentary. But there was a sub topic or just something someone mentioned that got me thinking.

I remember when I first got access to a lot of money, which was for me, a lot of money at the time. It was like six thousand euros a month or something that I was making at work. That's a lot of money. Even today. So that was my salary, actually. And afterwards I got access to a lot more money.

When I started my company, I was making more of this money and I was traveling. I was doing my Round the World tour and I think these people were idiots and stuff, retrospectively, I looked at where I spent some of my money and it was just dumb. I went to like a bunch of, like, super fancy hotels.

I was in Fiji for a month. I was in the presidential suite or something for a month in Fiji. It was completely unnecessary. And I just wanted to have that suite or something, you know?

And it's something that happens when, you know, when you get access to a lot of money. I'll say quickly, I didn't get access to all this money overnight. OK. Which for me limited the damage. But a lot of people who get access to money just like overnight like this, they will end up spending it in the blink of an eye.

And you may be doubtful about these people. You give them a billion dollars and they’re going to spend it. Trust me. People are going to spend their money.

This is exactly why you WILL go broke…

So that will bring me to my actual point. So when I was doing that, there was something that was happening simultaneously. And when I look at both of them together and now I'm like, aha, OK. Something that was happening at the same time and it was social media.

So what do I mean by social media? It means that I was active on Facebook. I was posting pictures of my travels in these big hotels and all that stuff on Facebook saying, oh, look, I'm here and stuff, you know, and people were like, oh, you bastard. So the main reason why I was spending this money, it wasn't for me. It wasn't necessary for me.

And now that I'm thinking about it, I'm like, dude, it was stupid. I've always said you shouldn't care about other people and stuff. And thankfully, by nature, I'm low key. So I think I manage to mitigate the risks and not make it too bad. But that's the thing. For whatever reason, I was actually living to impress people.

And this is where my money was going. My money wasn't going out because of a problem of financial education. Because, you know, financially education or no financial education, you could very well keep your money in the bank.

The problem here was other people. And it was me worrying too much about wanting to, like, portray a life or show a side of my life to other people. I was somehow caring about what other people were saying, like admiring me or something and that was the biggest problem.

So today I'm making way more than I was making at the time. But I'm not spending as much on unnecessary stuff that I was before. And now today, I don't remember the last time I posted something about my travels on Facebook. I don’t feel that need to do it anymore. And it saved me a fortune!