Becoming a millionaires is one of the life long dreams of so many people all around the world. When I talk with colleagues youger folks about their dreams and aspirations, it sometimes feels like becoming a millionaire is the only dream so many of us have in common. Well, in a world where millions of people have been massively affected by the menace, Poverty, I think I quite normal for anyone to want that freedom that comes with abundance and having so much that you don't have to worry about ever getting broke again.
While growing up, I never thought anyone who ever became a millionaire would ever go broke. Going broke after owning millionaire meant the individual had some really bad spending habits, provably spent all their money in clubs on alcohol and women, that was what the media preached to me as a kid and truly, some millionaires who went broke had really bad spending habits but going broke takes more than having a bad spending habit.
It's quite unfortunate that you can't make money as fast as how you could lose it and believe me, staying a millionaire is as tough as becoming a millionaire, it is staying a millionaire. So enough talks and here is why millionaires go broke.
Financial illiteracy:
Many millionaires who went broke weren't exactly financial literates. A person who knows little or nothing about the right investments, assets, taxes and becomes a millionaire either by luck or by their hardwork would lose all they've acquired, it's just a matter of time. Many of the millionaires who went broke raht I know either took loans that had massive interest rates and didn't pay up in time, bought jewelleries, houses and cars they didn't need but for show off, rent stuffs they don't use and don't bring in any income and didn't invest in the right things (if they did at all). We can say all they did was spend and weren't exactly earning so much to keep up with their status as millionaires. Unfortunately, millionaires who weren't financial liberates learn about growing their wealth thr hard way, many of them go broke at first, and most times they bounce back.
Unconcerned About Their Wealth;
Many of the famous millionaires I know who went broke got broke because they didn't pay attention to the wealth they were generating. In so many cases, they had put in charge a person who they felt was good at managing their wealth and unfortunately these individuals managing the wealth were really bad at their job. Some evade tax, some took extra money for themselves and carried our several other actions that affected the millionaire later to a point where the millionaire had to declare bankruptcy. The big lesson here is manage your wealth yourself, it's "Your Wealth" for a reason. It's not a bad idea to involve others in the management, but make sure you're doing atleast 90% of the management and overseeing the crucial parts.
Crime:
Crime is one way to lose everything you've acquired all your life. Most millionaires who went broke where involved with activities that weren't appealing to the law. Some did drugs illegally, harrased and sexually assaulted people, broke laws evaded taxes etc. In a countey where laws are strictly abided, millionaires who break laws can easily lose all they have by paying fines upon fines, getting lawsuits, and by going to jail. At the end, their crimes ruin their reputation and hinders how money also comes in for them.
These are the top three ways a person can go broke from being a millionaire. I hope you find this post helpful.
