🌼The Harsh Truth About Big Money the Rich Don’t Tell You
## Big wealth doesn’t equal carefree life.
Money can make your life pure hell.
We’re used to thinking that money is a ticket to a free life. Sort of. As long as it’s not too much to raise a couple of significant issues.
“Too much” doesn’t need to be much at all. You may be OK paying 33% of your salary in taxes on the median annual income of [42,200 EUR](https://allaboutberlin.com/tools/tax-calculator)($46,800) in Germany. But you need a tax advisor if you make more than 150,000 EUR to legally keep as much as possible.
Learn MoreRead also: 7 tiny habits to eliminate procastination
This is only the beginning. The larger your net worth, the harder it’ll get.
## **1. Constant Worry**
The rich appear relaxed when we see them. But in reality, they constantly worry about their money. No, they didn’t tell me personally but you get the picture when you keep an eye on them long enough.
They are good at building systems to keep their wealth under control. Take Warren Buffett.
When you hold [$25,6 billion](https://stockcircle.com/portfolio/warren-buffett/ko/transactions) worth of Coca-Cola shares, the company becomes a family business for you. Warren’s son, Howard Graham Buffett, [served](https://en.wikipedia.org/wiki/Howard_Graham_Buffett#Business) as the Director of Coca-Cola Enterprises (Coca-Cola bottler) between 1993 and 2004.
I’d certainly want to keep things at Coca-Cola under control if I had $25,6 billion invested in it.
And everyone wants part of your wealth and can accuse you of just about anything. This happened to Gwyneth Paltrow who supposedly [crashed](https://www.foxnews.com/entertainment/plaintiff-gwyneth-paltrow-ski-crash-trial-regrets-lawsuit-im-gonna-be-internet-forever) into an old man while skiing and “left him with permanent traumatic brain injury, four broken ribs, pain, suffering, loss of enjoyment of life”. The man [wanted](https://www.buzzfeednews.com/article/anthonyrobledo/terry-sanderson-gwyneth-paltrow-lawsuit-regret) $3 million but lost the trial. Such stories are common.
I wonder if Gwyneth has $3 million lying around? “Cash is trash”, [said](https://svencarlin.com/cash-is-trash/) Ray Dalio.
It’s OK to have $1,000 within your reach. But what if you have, say a billion dollars? A 4–5% inflation (normal for a growing economy) will eat away at your wealth at the rate of two Tesla cars a day. You _must _invest your money.
This is where it requires a strong mindset. The price of your assets invariably fluctuates. It’s common to [hear](https://www.ndtv.com/business/jeff-bezos-loses-10-billion-overnight-8-billion-hit-for-elon-musk-3342902) of the rich who “lost $10 billion” overnight.
They didn’t lose anything, naturally. Those are paper losses. The rich are not prone to panic selling and have their own opinion about the economy and stock market.
_Keeping your wealth is your first priority._
## **2. Privacy and Security Concerns**
Your private life is no longer private if you have $1 billion.
The rich often attract attention and make headlines because… well, it’s cool if you are rich and did something remarkable like [launching a Starship](https://www.reuters.com/business/aerospace-defense/elon-musks-spacex-launches-debut-flight-starship-rocket-system-2023-04-20/). It’s even cooler if you screw up and face a lawsuit. People love sensationalism and malicious joy.
You are the center of attention everywhere. Paparazzi note who you speak to. Did you touch your interlocutor? Nice. Which body parts?
Remember these photos of Keanu Reeves? My hero.
Facing criticism is part of your life.
> “Why do you donate so little?”
> “Why do you need so much money?”
> “The purchase of that yacht is outrageous!
Whether it’s your wealth or lifestyle, you’re doing it wrong. The little guy knows better.
There’re individuals wishing you harm. Physical harm. You don’t want to get your teeth and nose [broken](https://www.reuters.com/article/us-italy-berlusconi-idUSTRE5BC1DA20091213) by a plaster statuette like the Italian Prime Minister in 2009.
Look at Musk and Buffett when they are in public. Bodyguards always accompany them.
Investing heavily in security measures is a must when you are so _dangerously _rich.
I don’t know how the rich manage this kind of pressure. They probably have a team of experts that “trains” them for public life. This must be cheaper than getting hurt or having to settle a lawsuit.
You’re a public figure if you’re mega-rich. Such is the price to pay for your wealth in a democracy promoting free speech.
_Your physical and mental well-being is in danger._
## **3. Political Issues**
Image by [PiggyBank](https://unsplash.com/@piggybank) on [unsplash](https://unsplash.com/)
Big money means your wealth is hidden in assets you cannot sell without causing a strong public response.
People will follow suit as they’ll assume you know something they don’t. Millions of individuals rushing to sell will strongly reduce your net worth.
So the rich tend to keep a large part of their assets and hold little to no cash. Purchasing very expensive stuff is impossible without taking a huge loan. Even Elon whose net worth is over [$150 billion](https://www.bloomberg.com/billionaires/profiles/elon-r-musk/#xj4y7vzkg) borrowed money for the [$44 billion](https://www.npr.org/2022/11/30/1139964806/how-elon-bought-twitter-with-other-peoples-money)Twitter deal.
There’re scenarios conducive to borrowing so much. Had Elon used his assets and sold all his Tesla stock, its price would’ve tanked big time along with his net worth.
This doesn’t mean, however, that he had no other option. Running a business using other people’s money is a smart strategy. It’ll be easy to pay off the debt in a few years as the value of the dollar constantly depreciates.
Elon’s [13,4%](https://www.investors.com/etfs-and-funds/etfs/sp500-heres-who-owns-tesla-now-that-elon-musk-is-selling-out/) ownership of Tesla is his but… not entirely so.
This is a constraint that comes with big money. How you manage it has a lot to do with politics. Your wants and needs come in second.
_You have to be extra careful when spending your money._
Read also: 10 lessons I wish I’d Learned before 10+ years of entrepreneurship
## **Takeaway**
Don’t go for big money. If $1 million doesn’t make you happy, neither will $1 billion. On the contrary, you’ll wish you never had that much.
It’s great to save and invest for your financial freedom. Make your investment journey enjoyable. Watch your wealth grow slowly and enjoy your life along the way.
No big money will save you from constant worry, keep your privacy, and leave politics out of your life.
Contributed by Denis Gorbunov
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