What happened when you started making some serious cash?

[Walt Heisenberg Jr]

I'm just curious to know what happened when some of you guys started to make some serious cash.

Did you tell anyone about it?

If so, did your friends treat you any differently?

 

[MightyOwl]

My friends thought I was doing something shady online when I bought my first car . Its common to see people not understand jackshit about whats going on online . Even worse , they think making money is easy .Coming from India ( a messed up economy ) , what is cheap in the US or say UK is considered expensive over here. So when you buy a $500 watch ( which is I guess is alright in the States ? ) people go complete NUTS .

 

[lyannastark]

I don't let any of my friends know how much money I'm making. They don't even know I'm making money at all. I told my mom when I was making a couple hundred a month but she thought I was undercutting and that I was really earning alot more. A mother knows her daughter I guess, because even if I was making thousands I would still probably tell her I was making a couple hundred lol

 

[RomesFall]

I'm not a six figure per year earner, nor am I earning over 5 figures a month...

What I can tell you though, just from my own experience of being self-employed for quite a while now is kind of the same as what the above posters have said...

People at first thought I was doing something shady, they then thought it must be easy... I guess they checked it out in secret because now I have absolutely none of the friends that I did five years ago. Not everyone's cut out for this 'easy life'.

I'm not saying this scenario will happen to everyone, or that it's even correlated to how much money you make... But some people will get jealous of you even being able to work from home, run your own business, set your own hours etc.

I think I just had lousy friends to start with, so it may not happen like that for everyone. Those kinds of people often want to keep you on their level, for me it's better that they did show their true colors as quickly as they did.

- RF

 

[red_devil010]

I don't let any of my friends know how much money I'm making. They don't even know I'm making money at all.

This right here is the key to maintaining transparent relationships IMO - There was a time about 2 yrs ago when IM started ramping up with me and I partnered with a Local company to sell leads to other local businesses for ridiculous sums of Money. Everything I did was automated. Setup time took a while, but after that it was automated for me. We started pulling in several thousand dollars a month and one thing I learned from it was never discuss how much you make with anyone. People will look at your differently. Fortunately for me, the person I partnered with was already doing 6 figures a year, so I had no problem with them - but nevertheless, other people found out and attitudes changed and I had to continually downplay everytime I saw them. Lesson Learned - Keep your mouth shut about your income levels.

 

[Lion]

Coming from India ( a messed up economy ) , what is cheap in the US or say UK is considered expensive over here. So when you buy a $500 watch ( which is I guess is alright in the States ? ) people go complete NUTS .

I'm not a "flashy" spender, and in the USA I think a $500 watch is still nuts unless you're a business man and expected to put on the appearance. Watches hit the 6-figure mark, which is ridiculous to me. I don't care what people think about me that much.

I don't let any of my friends know how much money I'm making. They don't even know I'm making money at all. I told my mom when I was making a couple hundred a month but she thought I was undercutting and that I was really earning alot more. A mother knows her daughter I guess, because even if I was making thousands I would still probably tell her I was making a couple hundred lol

Yeah, best to underplay it. People start to get bitter, jealous, resentful, and start to expect you to pay for things if they find out you make more than them. There comes a point where you have to enjoy the fruits of your labor too though. You'll find out who your real friends are and then you can reward them by inviting them to your amazing home and vacations and stuff. I'm not saying I'm filthy rich either. These attitudes can arise out of the smallest differences in earnings. I remember coming up in my day jobs back in the day, a guy flipped his wig and went to the boss because he found out I was making 15 cents more per hour than he was. It's not really about the amount so much as the idea.

 

[red_devil010]

a guy flipped his wig and went to the boss because he found out I was making 15 cents more per hour than he was.

that's hilarious! Quite a small sum to make a fuss about - nevertheless, best to keep to yourself.

 

[lyannastark]

I'm not a "flashy" spender, and in the USA I think a $500 watch is still nuts unless you're a business man and expected to put on the appearance. Watches hit the 6-figure mark, which is ridiculous to me. I don't care what people think about me that much.

Re: Watches, I'm a bit of a watch enthusiast myself, so if I could afford it I probably would spend 6 figures on a watch. Not everyone wears watches for the "flash", or what people think about them. Some of the most expensive watches aren't flashy at all, nor are the names highly recognizable to the layman. There's just something about the intricacy of watchmaking that makes people tick (hope you see what I did there ) ... the movements, the precision, mechanics and craftsmanship. I could go on and on. But I do understand what you mean... there are people that buy expensive watches, not for an appreciation of the work that went into it, but because it makes them look cool, or feel better about themselves. People like that are not my cup of tea.

 

[MightyOwl]

I'm not a "flashy" spender, and in the USA I think a $500 watch is still nuts unless you're a business man and expected to put on the appearance. Watches hit the 6-figure mark, which is ridiculous to me. I don't care what people think about me that much.

What I am going to spend on a watch someone is going to spend on the new iPhone . Or a new paintjob for their car.Or hell , even a Transformers toy for their kid.
In the end thats why we all make money.

 

[Walt Heisenberg Jr]

Lots of interesting responses here, and a majority of them are rather similar... keep it to yourself, don't tell anyone.

The reason why I asked this question was because I was interested if I was the only one that felt this way.

Nobody knows how much I earn. I tell my family and friends that I work in a web design agency, which is actually an office that I've rented with 2 staff working under me.

The main reason why I've decided to keep it a secret is because I've seen first hand that money changes people... it also damages relationships with loved ones.

You start to get family and friends asking you to invest in their idea. And if you shrug it off, they start to get pissed and it starts to take a toll on you.

And when you sit in family gatherings with relatives, you have to go through stupid sarcastic jokes about how rich you are (of course, not everyone is like this).

Personally, I'm happy by not buying designer clothes or riding fast cars. (although there's nothing wrong with spending your hard-earned cash on some luxury)

What I do like to spend my money on though, is good food and stuff that helps me maintain my health.

Anyways, lots of great responses here so far. Would love to hear more.

 

[red_devil010]

@Walt Heisenberg Jr Great points you brought up about Family & friends knowing. No wonder a lot of "wealthy" people spend time with other wealthy people; seems to me that they are not looking to constantly downplay everything.

A couple years a ago i read a book (actually it was an audio book) about what a real millionaire looks like. It was called "The Millionaire Next door" and had very insightful information as to how real millionaires lived, how they spent there money and what kind of cars they drove (and how often they bought a new vehicle), etc etc. The author came to the conclusion that a majority of millionaires did not flont their wealth, had normal lives, normal cars (which they kept for an average of 10 yrs from what I remember, if not longer) and had a healthy retirement cushion to maintain their lifestyles well after retirement. I wish I had a better memory to explain more of the book, but I definitely recommend it to anyone who has come into any sort of money.

 

[Walt Heisenberg Jr]

@Walt Heisenberg Jr Great points you brought up about Family & friends knowing. No wonder a lot of "wealthy" people spend time with other wealthy people; seems to me that they are not looking to constantly downplay everything.

A couple years a ago i read a book (actually it was an audio book) about what a real millionaire looks like. It was called "The Millionaire Next door" and had very insightful information as to how real millionaires lived, how they spent there money and what kind of cars they drove (and how often they bought a new vehicle), etc etc. The author came to the conclusion that a majority of millionaires did not flont their wealth, had normal lives, normal cars (which they kept for an average of 10 yrs from what I remember, if not longer) and had a healthy retirement cushion to maintain their lifestyles well after retirement. I wish I had a better memory to explain more of the book, but I definitely recommend it to anyone who has come into any sort of money.

Yep, I had read that book a few years ago, definitely recommended.

 

[RiverStyx]

I've got my family thinking *its easy*. I tried to help out by making my bro a small ecommerce site, and as its a charity project for me it's not hugely high up on my list of priorities. Doing my job and the projects that pay my mortgage are a bit higher up, ya know? So, as its not done yet, he got pissed off at me and had a go about why it wasn't done yet. Basically yelling at me because I wansn't making him any money yet....

That's what I get for trying to help. I don't see many more charity websites in my future; I don't need this shit.

 

[red_devil010]

Agreed- I've done this once before as well, "helping someone out", it only came back to bite me in the butt. For web dev stuff, its flat rate per page, they provide content, images, hosting and domain, and I'll design it and develop it. I develop locally and connect through vpn to show them the site when Im at their location, but until the site is paid for, nothing ever gets uploaded. People tend not to screw you then, since they dont even have the site uploaded yet! ha

 

[RiverStyx]

Yeah, I think I'm done with trying to help family out, its a time suck and stressful. At this point I'd rather just help them out with cash if they need it- a lot easier than fighting!

 

[CCarter]

I've got my family thinking *its easy*. I tried to help out by making my bro a small ecommerce site, and as its a charity project for me it's not hugely high up on my list of priorities. Doing my job and the projects that pay my mortgage are a bit higher up, ya know? So, as its not done yet, he got pissed off at me and had a go about why it wasn't done yet. Basically yelling at me because I wansn't making him any money yet....

That's what I get for trying to help. I don't see many more charity websites in my future; I don't need this shit.

Never help family with SEO or getting into our industry - if they aren't passionate about it, they'll take a lot of the knowledge you implement for them for granted. It's like being an accountant, if you are making good money it doesn't mean you should teach relatives to also become an accountant. You "CAN" take them on as a client - but that always ends in a disaster, cause one side will feel obligated for extra stuff or feel they shouldn't have to pay, or some long time ago drama enters.

Jack Warner (Warner Brothers) once told Albert Einstein when they were touring the studio "I have a theory of relativity, too. I never hire them."

The underlying reason you are trying to help them out is cause of charity - but even if you do, they know deep down that's it's charity too. In Robert Greens' "The 48 Laws of Power" - Law 46: "Never appear too Perfect" is the EXACT scenario that you are in. Read that chapter, and you'll understand.

Never feel guilty cause of your success - and most importantly don't let others throw guilt onto you. They have their own lives and paths they must follow.

 

[RiverStyx]

You've hit the nail on the head, that is exactly it, they take what I can do for granted and have no concept of how many hours are behind it all. IM was a hobby for me long before I turned it into my full time pursuit and you have to be passionate about it to put in the hours that you need to get any good. They simply have no concept of this.

Thanks for the recommendation on the book, sounds interesting I'll pick up a copy. I may have contributed to creating the illusion of perfection by making it look easy.

Lesson learned.

 

[red_devil010]

@RiverStyx knock that off, no more illusion creating about how much money seo's make

 

[turbin3]

I had several things happen to me, and more importantly because of me, when I first started making some serious income. At the time, I was young and making high 5 figures, no kids, no wife, no financial obligations, debt free. In short, I bought a LOT of stuff. I had 4-5 sports cars, and a whole lot of other stuff. What drove me wasn't a desire to buy for the sake of buying, or buying to be "cool" or to make me feel better about myself. It was entirely about taking appreciation in some of the things I enjoyed based on the level of craftsmanship and engineering that go into them. That stuff always fascinates me. So I know exactly what you're talking about @lyannastark.

As far as what changed? Friends all wanted me to get them a job doing what I was doing at the time, but the vast majority of them I knew either had a totally unprofessional demeanor that would not reflect well on me or the business, did not have the work ethic to survive at the job for longer than a week or two, etc. The one friend I did feel had the work ethic, intelligence, and professional demeanor, I ended up getting a job with this company at the time. He lasted 2 weeks before quitting, because he's the type of person that has an ego and personality that will never let him work under anyone for very long. The funny thing is, that guy kept referring to my job as "not a real job", and that it was just something trendy that was going to disappear soon enough. Seemed like a pretty real fucking job to me for 4 years straight and several hundred thousand dollars later!

Lessons learned:

• No matter how much money you make, you can ALWAYS spend well beyond your means, so don't be a dumbass and plan farther ahead than a few weeks or months.
  • Some of the people I've known that were financially in the worst possible shape of anyone I've ever known, have been people with six and seven figure incomes. Owning multiple homes, racking up considerable debt, constantly putting off financial obligations...just because someone is making six or seven figures, doesn't necessarily mean their life looks quite how you think it does. I've known business owners with seven figure income that literally lived paycheck to paycheck. Think about that for a minute.

• Debt = Slavery. Seriously, if you're in debt, you should have almost a sole focus on repaying that debt, or you can very easily be welcomed to a life of indentured servitude, continuously focusing on paying your credit deficit (kind of like the US government).
  • I can't stress the importance of this enough. Any extra income should be heavily focused towards paying off debt. About the only exception I'd make is if you have a VERY solid business opportunity that very realistically could help you generate additional income and assist you in paying off debt faster. Don't roll the dice here and get in more debt on impulsive "business opportunities". Make sure it is a solid and reliable opportunity with acceptable risk.

• Don't focus on what you can buy for the sake of buying. Focus on how you can invest your money to make more money.
  • I wish someone beat this into my head the first time around, as I would be debt free at this point in time, own my house outright, etc. Oh well, you live and you learn. Seriously though, this is a tough one, but one that can seriously benefit a person if they're able to shift their mindset into really enjoying the thought of spending money effectively to make money, and then constantly filling their thoughts with this as opposed to "Hey I just got a check! Now what kind of cool stuff can I buy?!".

Anyways, those were the few things that sprang to mind. I'm not currently making awesome money, but making a healthy living doing client work for an agency. I am hoping to get started in affiliate marketing and start generating some decent supplementary income, though I'm currently suffering from paralysis by analysis. Too many options, and it's always tough to get the ball rolling.

 

[red_devil010]

• Don't focus on what you can buy for the sake of buying. Focus on how you can invest your money to make more money.
  • I wish someone beat this into my head the first time around, as I would be debt free at this point in time, own my house outright, etc. Oh well, you live and you learn. Seriously though, this is a tough one, but one that can seriously benefit a person if they're able to shift their mindset into really enjoying the thought of spending money effectively to make money, and then constantly filling their thoughts with this as opposed to "Hey I just got a check! Now what kind of cool stuff can I buy?!".

This right here! Unfortunately, everything I buy is Always for sale for the Right price. This has led me to make a lot of money on things that I loved and "had to have", but it seems that I have usually come out on top and made money on almost everything. There a few exceptions (cars) that I have lost a little. But in the long run, if you focus on how much Money you will make if you buy something at a certain price, you will tend to look for better deals or rethink the purchase altogether. Good advice.

Also on the debt portion - debt is like an anchor that'll hold you down from progressing in life. I've leveraged quite a bit of money and noticed that if i dont pay it back immediately, I end up not paying it back at all. I've used dave ramseys method of paying off debt. The "snowball method". Pay off your smallest debt first, then tackle the next smallest and roll the first payment into the second debt payment, etc etc. This will accelerate paying off debt. Paying off 5 CC's & LOC's within year will be a very relieving feeling and you'll feel empowered to produce and start making money you can actually keep.

As of lately - the more money I make, the less I want to spend. There's something about knowing you have a "cushion" in your bank account if the "shit hits the fan" - almost a form of financial insurance. motivates me to keep saving rather than spending; unless its to make more money on of course.

 

[Romac]

The first time? I started multiplying my daily earnings by 365 and living like that was my income. Big mistake.

Second time around I kept the same broke-dude lifestyle even when the money started pouring in again. That project died too eventually, but at least I was able to float myself.

 

[SheIsaBlogger]

I'll let you know soon

 

[chaddicus.]

You start to get family and friends asking you to invest in their idea. And if you shrug it off, they start to get pissed and it starts to take a toll on you.

And when you sit in family gatherings with relatives, you have to go through stupid sarcastic jokes about how rich you are (of course, not everyone is like this).

That right there is the main reason I always think keeping quiet is the best policy when it comes to this. They can know that you're getting/you've become successful, but actual digits need to stay out of it. I've had too many friends and family ask me for help with one thing or another and want to spend maybe $200 a month on SEO for extremely competitive niches, then get angry when results aren't there in 3 weeks... But in my family saying no isn't done. Just kind of the culture I grew up with. So I was stuck explaining why it wasn't working yet. Now I just say that I'm way to busy to take on another project and get labeled as the ass... But its way better than dealing with their shit.

Also, the beauty about what we do is that we can pretty much work from anywhere. And I really like to travel. So when friends or family see visiting a different place every month or so they inherently get jealous and annoyed and think that my life and work is super easy and that I lead a cush life. They don't get the time, energy and cash that goes into research, forum participation and overall networking to get where we are and to where we want to be.

Don't even get me started on when chicks find out what you're making... I basically just tell everyone I make enough to get by and save my money well so I can travel often. Convince them I just changed my priorities and spending habits.

And finally, DEBT IS THE DEVIL. Stay away as much as you realistically can.

Long story short. It's none of their damn business what I'm making. It's better for every relationship.

 

[RiverStyx]

I second that bit about the debt. Fucking soul crushing depening who you owe it too. Its particularly entertaining when you owe it to friends, family or SO's :/

 

[Philip J. Fry]

You call an accountant.

+192,493,490 for how many times I've meet people who were SOL (including me) the year after they started making serious cash.