IF I KNOW A HIGH EARNER CAN I BECOME ONE??

LESSONS FROM A HIGH EARNER: INTERVIEW ONE

One of my private students has a very high position at one of the companies I teach at. We have a good relationship and I decided to pick his brain about what it takes to become rich. Here is the advice he gave me.

First, “You are not the money-making type”.

Thanks. This is not a great start. Then, “if you want to become rich, choose a profession where you can work under the table, or get a real job. We are in Italy, the taxes are too high to be an independent professional. But if you want to work independently, at least write off everything you can.”

Q:Trust fund or real estate for your kids?

A:In Italy young people are helped by their parents, there are no trust funds, and if you want one you need to get it in Switzerland. We don’t use them here in Italy.

Q:Do you invest?

A:No. I don’t spend money. I don’t go on expensive vacations, I live simply. I bought my apartment. When I had more money, I bought the apartment below mine. When I had more money I bought my son a 250 m2 apartment downtown. He is a very lucky 28 year old.

Q:Did you take out a loan?

A:No. I only pay for things in cash. I don’t like to have debts.

Q:How do you pass the value of money on to your children?

A:It is normal for our children to live a privileged life when they are young. They do not appreciate the sacrifices made by their parents to give them a better future. My hope is that when my sons are older, they will understand the value of money. My older son is already starting to understand. He is working and knows first-hand what it is like to work a lot for very little. My sons have seen my wife and my way of life. We are not extravagant people. 

They could never understand where I come from. I was one of five brothers in a very poor family. My mother did not work and I still marvel at how she managed to feed all of us.

Q:Where are you the most extravagant?

A: I grew up in a situation where it was not possible to take a hot shower every day. Hot water was rationed and my mother was very careful about how long we were allowed to be in there in order to make sure there was water for everyone. Now I take LONG HOT showers, I waste water, it is my one extravagance. Long and hot showers.

Q:Regrets?

A: I have many regrets in my life. Most of all, I feel that I have lived too little. But I have taken care of my family, and as a man from the south, that is important to me.

Q: Does money buy happiness?

A: No, but it buys you the things that buy you happiness. That’s not a very nice thing to say, I realize that.