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Originally Posted by Sly
What exactly were you trying to explain to him that didn't sink in?
If I was your brother I would be doing the same exact thing. The more money you make, the more you pay in taxes. So you find new assets and investments to acquire that not only lowers your profit (and taxes) but increases your assets, future profit, and overall worth. Of course, as the profit grows its a continuous problem of spending the additional profit, but thats how the cycle works.
He can pay a load of taxes on $20k monthly or he can invest $18k, pay taxes on $2k, and walk away with an asset that will generate income worth at least $18k.
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Point was that he is taking home 20k a month and the reason he needs to earn more now is that is standard of living as outgrown his income. He never thought of investing nor anything until he relized that all of his earning were vanishing to pay his regular bills.
I am all for one making money and having your income grow, well as long as it does not involve investing with a family member again. Increasing assets and worth is a great thing. Knowing that if he was able to double his monthly income his standard of living would still increase and thus still be broke.