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This Is Why Some People Are Poor

Discussion in 'BlackHat Lounge' started by The Scarlet Pimp, May 5, 2009.

  1. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    This article focuses on why lotto winners often lose their money quickly. But it does a pretty good job of explaining why many people will always be poor.


    Why Winning The Lotto Is Bad For Your Finances...

    Many studies have been conducted following the journey of the winners of lottery stakes and the studies have found that in nearly all cases the winners ended up with less money or in a worse financial situation than they were prior to winning the lottery, in just a short period of time afterwards.

    That's a pretty interesting finding isn't it? So why is this?

    Could it be that the mentality that causes people to buy lottery tickets is the same mindset that loses those winnings. One of the proven points is that if people advance beyond where they are, whether it be financially or socially, that they eventually gravitate back to the level where they see themselves.

    (Eg. The image you have of yourself must also advance if you are to retain your financial status).

    So when people gain these winnings, they don't have the financial intelligence to deal with the large amounts of money and therefore these funds disappear at an extremely fast rate.

    On the other side of the coin if we look at people that have created their own wealth, their wealth continues to grow. By developing the right mindset in the first place it gives them the understanding of what wealth actually is.

    When speaking about wealth, most think we are talking monetary value but we are also talking about a whole life approach and having abundance within our lives. By having an abundance mentality it gives us the ability to then further increase our abundance even further. Understanding the abundance mentality gives people the ability to realize that if they add value to society and other people's lives that the good things will return to them.

    It has been said that if all the wealth on the earth was taken away from the wealthy and divided evenly to everyone on this planet that within a very short space of time the wealth would end up back in the hands of the wealthy not because the wealthy come and steal it, but because the wealthy have the mentality which enables them to make and attract wealth into their lives, where as those without the right mindset don't know how to retain their wealth.

    So if the old saying "It takes money to make money" was correct, this scenario would not work, so the only difference here is the mindset and the mentality of the people involved.

    If we think along the lines of scarcity that is what we will attract into our lives, if we think along the lines of abundance we will have abundance within their lives.
     
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  2. small_town_boy

    small_town_boy Power Member

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    During the real estate bubble I've been a witness how a person with around 1 million dollars after quickly selling his land is now in debt and without money. He was spending everywhere and didn't care to invest in any business or think twice about purchases.

    This happened to many people when they quickly got rich. They can't appreciate the money, because it came so easy to them. They think they are top of the world. This is why you always manage your finances and know what % you can spend and what % you have to invest.
     
  3. woodstuck

    woodstuck Junior Member

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    A good and true Lesson for all.
     
  4. chickuzt

    chickuzt BANNED BANNED

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    Yes and no. I tend to disagree...
    MOney comes not from JUST the right mindset but a series of simple qualities and quantitative data.

    This is what makes the rich rich-
    -The have networked with other rich powerful individuals to further themsleves
    -They are ambitious
    -They have the KNOWLEDGE (Technical, business practice, managing, evaluating "Game Theory", asset inflation, (real knowledge, not stuff you can find a tutorial on the internet or BHW)
    -They have the experience to know what works and what desn't
    -In a competitive market, you are in a game, we are all in this game and the very person you might be sitting next to right now is also in this very same game. The objective is to win, which means you have to outplay him, others. YOU HAVE TO STRIVE TO BE THE BEST, better then the others!

    Money is a reflection that you strategically out played, planned, and performed than the opponents.
     
  5. woodstuck

    woodstuck Junior Member

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    Hmmm, I say that reinforces the stats...

    The Lottery winner did not have any of your qualities - they then would be an exception to the rule (stats).

    A Lottery winner with your stated qualities would not end up a loser... you know?
     
  6. superbspurs

    superbspurs Regular Member

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    I agree. Wealth is a mindset. Knowledge is overrated, its what you do with it that counts. People that are wealthy dont necessarily have more knowledge, they surround themselves with people that have more knowledge and use it effectively. When you have a mindset to be rich eventually you will migrate to the rich so I agree that like attracts like, it always does. That's why these lottery winners end up poor, they keep the same friends as they had when they were poor and they spend, spend, spend and dontknow the value of the money they have.
    Money and wealth are two different things, money is a part of wealth not the other way round.
     
  7. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    I tend to put all of those traits (networking, ambition, knowledge, etc.) under mindset. :D
     
  8. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    Lotto winners show the same mindset that children do at Christmas. Lottery winners don't
    value their prize winnings because they did *NOT* work for it, and children do *NOT* value their presents because they didn't work for them.

    Lotto winners blow their cash and kids break their toys -- same mindset. IE, free and easy = valueless.

    Ever notice how many wealthy celebs quickly go broke after a few years in the limelight? Think about it for a moment........ one day you're Ronald Wilson, struggling hack. And then you write and sing the smash hit song, "Forgotten Moments".

    Suddenly you're **RONNY WILSON** lead singer of the hit musical group "The Demented" and your first payday nets you $750,000. And that's just for one album! WOW!!!

    These good times will never end! So you start buying everything you can see and damn the price tags 'cuz baby, you're loaded!!! Mansions, parties, hot cars, cool drugs, girl groupies, wild vacations, exotic travel, crazy interviews... spend! spend! spend! spend! spend!

    And then.... the music stops, the cash disappears and the only things left are the bills.

    Too much too soon = trouble.
     
  9. chickuzt

    chickuzt BANNED BANNED

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    Well, I can change my mindset in a few minutes and tell myself I will now act like a wealthy real estate mogul or like a durty hobo. The things I am talking about are skills that take years to establish and LEARN.
     
  10. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    Oh, I knew what you meant.
    I was just having a spot of fun. :D
     
  11. werrich

    werrich Regular Member

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    mindset is definitely where it's at. As for chickutz: mindset means more longterm, just how a person is by nature, not how one makes themself think this moment. It's a longterm thing. It's the same reason why hypochondriacs usually do get sick, why people who truly believe everything and everyone around themselves sucks will usually experience more of the same, and why others will fly through all levels of adversity because they are focused on getting through it and making the best of things.
     
  12. halfbrainj

    halfbrainj Newbie

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    It is all nice to lean the key elements to be rich. May be someone out there can put together an e-book to lean those skills. It will sell like hot cakes!!

    There you go guys! One more nich in BHW!
     
  13. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    Last year I was contacted by a lottery winner who got $20 million back in the mid 1990s.
    Believe it or not this person was broke and needed a cash advance on the remaining payments.
     
  14. ricaum

    ricaum Registered Member

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    Great post, even thought 'mindset' is a very vague and still powerful concept.
     
  15. safaristyle

    safaristyle Regular Member

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    For some reason its not true for me at all..So far I spend like around 1K for buying methods & Software..and I didn't even make anything ..May be I am lazy..But with my own method which cost nothing at all...I able to make 15K and still making :) . Hopefully my situation will change someday and like others I will also say "It takes money to make money" :rolleyes:
     
  16. porko

    porko Registered Member

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    OK I'm sitting here thinking abundantly and nothings happening:D
     
  17. LHaskins

    LHaskins Regular Member

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    I like how some lottery winners say they don't plan to quit their jobs, I just want to reach
    through the TV and shake them and yell "WAKE UP! There is a whole world out there to be
    seen and experienced!"
    Wealth really isn't about money.....it's about the time and freedom to do what you want to do, when you want to do it.