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Originally Posted by After Shock Media
He then explained that when you make that much your bills go up as well.
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In some cases, that's very true.
Back in the 70s we had a family member who owned a large ceramics company in Toronto (one of the largest ceramics wholesalers in Canada at the time)...and they always seemed to be doing very well for themselves. They owned a nice penthouse apartment suite, a new luxury car, a 40-foot yacht...the works. And they were always flying off somewhere exotic for nice vacations at the drop of a hat.
Until the day a bailiff showed up at OUR door and asked if we knew their whereabouts - he had a summons to serve them.
As it turned out, they basically operated all on credit - they never actually had any genuine assets themselves. It was all for show. As their business and earnings increased, so did their lavish lifestyle. And to keep up with it all, they ended up running bigger debts just to keep up appearances even when things were crumbling behind the scenes.
In a matter of months, their company went from the appearance of being highly success....to insolvent, a padlock on the door and a handful of creditors left eating their losses.
I always keep their bad example in mind whenever the wife and I are about to make a decision on a big ticket purchase these days.