This idea was brought to my attention from highly successful Real Estate mogul Grant Cardone. In which he speaks about the book called "Millionaire next door" and how you should not even read this book because of how bad that advice is. I can vogue for what he is saying as I have my own experience in this particular debate.

My story

Growing up in my teens I always wanted to be a businessman that does multiple projects. As I entered my 20's that become more true as I titled myself an entrepreneur and the goal was to be able to create income from money so I can always be mobile around the world if chosen.

From 20 to 25 years old I was very fortunate and had some success in real estate and trading stocks. I went from having absolutely $0 to a few hundred thousand. While most people around me were stuck in a dead in job while accumulating more and more debt...I was pretty excited about the future.

One of my fears in life is financial security..or at least it was up until recently. All I wanted was to make some substantial money and of course to be an entrepreneur, let my money work for me and be involved in so many different types businesses.

While I was doing very well in regards to my peers and on average, I started to become overly obsessed with spending, financial security, and stress about my "net worth". All I was doing now was trying to manage this mislay little money, instead of being aggressive and chasing my true dreams!

Grant Cardone

This is the exact point Grant brings up in regards to listening to somebody who has JUST a million dollars. Those "millionaires" are usually so happy to have that money that they give up being aggressive with investing or spending. They worry so much about loosing it that all they do now is just try to manage it, so they keep that million.

The new middle class is having a Million Dollars or Two. With that, you are broke. If you have a million dollars when you retire around 60 and you still live another 30 years. That is $33,000/year. The average expenses for people over 60 years old in America is $1700/month. That's for one person, so not counting taking care of your spouse, kids, grand kids or any unexpected expenses. Not counting for inflation of your currency also. You will not survive the way you want to with only a Million Dollars, when you retire.

I totally agree with this logic and even in my early twenties I was worried about retirement. I knew I needed millions of dollars to have the freedom I desired.

What we should consider

Having cash and having income coming in have such different impacts. When you have lump sums of money, it can dwindle so easily because it is available to use, so you use it based on how much is there. That is how it can be gone so quickly. Income helps take care of expenses and is the best way to build up your finances but also protect you in times of need. Cash flow is also the greatest way to scale up and be accumulating huge sums of money. Less risk and more probability of happening in your favor.

Create income streams and build them up as much as possible. Then move onto building other streams of income in the same or different ways. Choose the known over the unknown when you are not sure. Do not venture into too many ideas, rather when you find great investment vehicles with better odds from your research, go all in.

@bitdollar