Learn from the master: A Getty guide on staying rich
Jean Paul Getty once said getting rich is easy, any fool can get rich.
Staying rich, that’s the trick. The world has changed since Getty made his fortune but staying rich is still difficult. Indeed, there are various ways that you can lose a fortune that you have accumulated. Let’s look at some of the dangers and make sure that your finances are secure.
Keeping your money secure
Going back to Getty, the man who was once the richest person alive used a number of different tactics to keep his finances secure. For instance, he set up a charity so that he wouldn’t have to pay tax. He also used to buy precious, valuable items such as paintings and artifacts.
Again, this was actually a smart business position. If you save your money and hold onto it without investing when the economy takes a dive you will lose it all. That’s exactly what happened to savers during the 2008 Wall Street crash.
Pensions disappeared overnight, and people were forced to return to work after long retirements. This is why you need to invest your money in safe prospects. You could follow in Getty’s footsteps and buy art. Or, you could invest in property. Alternately, you can buy up the only true currency – gold.
Prepare for disaster
You do need to make sure that you are preparing for the worst-case scenario. One of the reasons why Getty didn’t spend his money was because he was preparing for a day when oil was no longer valuable. As it turned out, the oil tycoon had no need to worry.
That day wouldn’t arrive until long after his lifetime. Still, caution never hurt and for business owners or private individuals, there’s only one way to protect yourself from financial disaster. You need to make sure that you have the right insurance coverage. Insurance can be tricky particularly if you want to make sure you are completely covered.
Finally, Getty certainly had a reputation for being frugal with his money. The media often portrayed this as money saving that reached the point of insanity.
However, it goes back to Getty’s obsession with staying rich, and in many ways, it makes a lot of sense.
While it might seem silly to install a phone box in your home for guests to make calls, by doing this, he was saving money.
The man was able to avoid pointless spends. This is a lesson for business owners, and private individuals should learn. For instance, financial experts tend to agree you shouldn’t ever buy brand new vehicles. The depreciation makes the investment a complete loser regardless of how much you use your car.
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