And by “too much”, I’m referring precisely to money. Too much money is just as bad as too little.
I hear you. I hear your loud voice shouting: “oh, dear God, just give me that too much money, and I’ll show you how well I can manage it”. I understand. Pretty much every person I know (me included) has this reaction. We tend to believe we can do well when we’ll have loads of money.
But, unless you have been born a millionaire, unless you grew up as a rich person, you won’t. I guarantee you.
The problem is not the absolute amount, in numbers. In, and by itself, that amount is meaningless.
The problem is the relative difference between what you have been used to manage, and what you will have to manage on this new “rich” level. The problem is to adjust, to adapt to that new level, and, the bigger the difference, the more difficult the adaptation process.
With too much money comes too much responsibility. And, if you’re not careful (which you won’t, because you didn’t learn how to pay attention), with too much money will also come too many expenses. This translates into an unbearable amount of stress, carefully concealed in an apparent comfort. Beyond this comfort, though, is the anxiety that you will lose everything. Which will happen, eventually, as every lottery winner will tell you.
So, instead of a serendipitous event which will make you suddenly rich, it would be better, if possible, to aim for some sort of a gradual process. To try and reach different plateaus and spend some time there until you feel comfortable.
If you have a hard time saving from month to month, try ending just one month with $100 plus. Stick to that amount no matter what. Spend at least 3-4 months without touching it. Then try and aim for $1000. Arguably, this will take you many months, probably a year.
But, by now, you have learned how it is to go from broke to $1000, and you did in a non-stressful, manageable, repeatable, predictable way.
And that’s all that counts, really. Because now it’s just a game of numbers. Multiply that by 5, for instance, and aim for $5000 at the end of the month. You know how to do it. And, once you’re comfortable with that plateau, try and diversify your portfolio: add some capital for investing aside. Start just as small, with $100, and aim not to lose it. Don’t aim to multiply it, just make sure you choose a safe investment, and let it there. Next month, add another $100.
This process, as tedious and as boring and as difficult as it is, is the only safe way up. It may not create, in and by itself, an immediate increase in your revenue, it will not make you instantly rich. But it will do something else, much better.
It will prepare you to manage correctly your wealth, once you get there.