Eric Deeran explains why a sudden income bump tempts you to buy a car or house, but warns that lifestyle inflation kills the business that made you rich in the first place. Reinvest instead.
My advice to anybody who's starting to make good income with their business or their income is just increasing regardless of if they have a business or not, do not start buying flashy things. Do not inflate your lifestyle. Don't inflate the things you're buying just because you have more money. Reinvest it back into the business. Because here's the thing that I see a lot of people do. They start making good money in their business and then they take that money and they invest it into like a nice car, a super nice house, you know, all these fancy things. And what got them to that point was their business, not the inflated lifestyle. And what happens is the distraction goes from the business to all these fancy things. They get distracted and then the business starts to go down. And the reason is because they're focused on all the flashy things and they're not focused on what got them to that point in the first place. So.
