Everyone dreams of getting rich, but reaching that point takes a lot of effort, patience, and sacrifice. Nevertheless, the world is full of inspirational success stories about the smart and wealthy. Henry Ford, Ralph Lauren, Walt Disney, Steve Jobs, and J.K. Rowling are the most prominent examples of rags to riches.
These figures are an inspiration for people who dream about gaining wealth. They converted their time and energy into wealth with the proper planning and strategy. To be rich is one thing, but to stay rich is an entirely different story. Not many people know the art of maintaining their wealth, and they fall back to where they started. In worst cases, even lower than that.
The inspirational figures mentioned above show us that it is possible to go from rags to riches. The following examples of the “rich and foolish” show the world that it is very possible to go from riches to rags!
Seeing the name of the King of Pop music, Michael Jackson, is a shock for many. But those who have stayed updated know the whole story. At the time of his death, Michael Jackson was $500 million in debt. Soon, the King of Pop began to be referred to as the king of debt. The pop music legend lived an extravagant lifestyle, bringing him into a sea of debt and unpaid bills.
As the most celebrated athlete of his time, Mike Tyson is known for his exceptional boxing skills. He was the first to win 19 professional fights in a row. As a result, he came to be known as Iron Mike. However, his actions paved the way for his downfall very quickly. He was arrested 38 times, and he was convicted of rape, for which he served three years in prison. He spent way more money than he earned on massive mansions, jewelry, luxury cars, and pet tigers. In 2003, he filed for bankruptcy.
As the Mean Girls star, Lindsay Lohan earned her name, fame, and wealth in Hollywood. However, her failure to handle her fame and wealth made her a living example of disaster. Over 15 years of her career, she is reported to have earned $20 million. However, her extravagant lifestyle and legal troubles have made keeping her head above water difficult.
Traits of the Rich and Foolish
Spending More than Earned
One of the primary reasons behind these celebrities and notable personalities ending up broke was their extravagant lifestyle. These examples did not keep track of their expenditures, which is what responsible wealthy people must do. Instead of adopting conscious spending, they spend way more than they earn.
Conscious spending is a common practice among those who remain financially secure. It is a strategy used to maintain wealth. Financially responsible adults first spend their income on their needs. Then, once their needs have been fulfilled, they move towards their wants. Their priority is always their needs.
Wrong Investment Decisions
Investing in the wrong places is one of the most highlighted traits of people who go from rich to rags in no time. Failing to hire the services of an expert financial adviser is the biggest mistake that people make.
A carefree attitude is not a trait that will allow people to maintain their wealth. Getting into legal conflicts and living as if they own the world is the biggest mistake a rich person can make. It takes smart planning and strategy to maintain wealth. With a carefree attitude, things are bound to go in the wrong direction.
Becoming rich and famous should not be anyone’s financial goal. Instead, it takes hard work to build wealth and remain that way throughout one’s lifetime. Unfortunately, not many people understand, and they end up like some of these top celebrities who made bad financial decisions.
It takes a lot more than time and effort to maintain wealth. A person needs a full-fledged financial plan and a responsible work ethic to maintain wealth. Unfortunately, it is not a trait many possess, which is a major reason why only a handful of people stay at the top of the list as the wealthiest people in the world!About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.