More Money To Spend - Isn't That What We All Want?

First of all though, we need to understand the principles of money and what is required in order to have more money to spend. There is Wealth Protection, Wealth Accumulation and Wealth Preservation.

Let's look at ...

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Wealth Protection

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... What does that mean? It means the protection of your current and future wealth value. Every rich person that knows what he is doing has built himself on a fortress of plans that protect not only his current value but also his future value. Imagine a person who has saved up a $1,000,000 in his whole 50 years of life through hard work, scrimping and saving, investments, etc but he does not believe in medical insurance because he thinks he can pay for his own medical bills.

One day, he finds out that he has a medical condition and he needs to get treated. The total cost amounted to $200,000. Now, that did not wipe out his savings. However, what he has lost is not just $200,000 for treatment, he has already lost precious time because he is no longer the young man that he was! How much time does he have to re-accumulate that $200,000? Had he purchased a medical insurance plan, the bulk of that $200,000 would have been shouldered by the insurance plan and he would still have the bulk of his million dollar savings and he would have had more money to spend. This example is a positive example because he recovered. What if he had been involved in a certain accident that resulted in him being partially disabled for the rest of his life? Thus, a good plan in place and in force would still provide him with income and give him the freedom to carry on pursuing his dream in spite of his disabilities!

Then we look at ...

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Wealth Accumulation

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... This is what EVERYBODY likes. Every. One. Everybody likes to see their bank account grow, everybody likes to see their business expanding, everybody likes to accumulate wealth in whatever form - it's our nature. We seek to accumulate our wealth through many methods such as savings, online business, investments, traditional business, working, gambling, cheating, etc etc. Most of us do it through legitimate means but I'm absolutely sure you've heard of stories where people try to accumulate their wealth through not-so-legitimate means. The main thing about Wealth Accumulation that identifies us is how badly and how fast we want to accumulate wealth. Some people may want to be a millionaire by age 30, some just want to be a millionaire some day. Some lucky people may have been born with rich, wealthy parents and all they had to do was inherit it - but are these "lucky" people really lucky? They may have received the end results of what everyone is trying to achieve but they have not received the necessary skills to maintain or re-acquire it if it was lost due to unwise decisions.

This is why people like Donald Trump can bounce back from owing millions of dollars in debt when the market turned on him and instead of giving up, he came back and made even more money - in a shorter period of time! He learned the necessary skills to maintain and acquire his wealth and thus, he had financial freedom and more money to spend. People like Mike Tyson did not make his money through wise investments and he didn't acquire the financial know-how for wealth accumulation - so he spent it living lavishly on girls, drugs, parties, etc. Where is he now, after all that fun? I don't think he has more money to spend.

Lastly, we look at...

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Wealth Preservation

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... This is the final stage of the wealth process. You now have several million dollars in your account(s). You are officially in the million (billion?) dollar status. You own your dream car, your dream home, your dream boat, your dream island, your dream job, your dream business, your dream (fill in the blank). So now, you want to preserve it so that if anything happens to you - your loved ones or your wishes will live and carry on. Very often, people who made it rich didn't do it for themselves but rather, for someone else.

You now have more money to spend, too much money in fact! You already have everything you want. So it's time to make plans for your wishes to be executed exactly as you wish - this is where you can make your wishes a reality. There are many ways for wealth preservation but again, going back to the basics, many people come full circle back to insurance plans because of the immense power of pooling and spreading risk. So after they have got their plans in place, they are free to spend whatever is left after setting aside the monies for the plan! They now definitely, beyond a shadow of doubt, have more money to spend.