You know that feeling you get when you fail at something you imagined you were so good at? You never thought you would ever fail at it. You’ve got the basics right, everything and everybody is dancing to your tune, it seemed like you’re destined to be successful at it, your relevance to the course is next to no other, the money is certainly making way to your bank accounts in great quantities; and all of a sudden, it all begins to disappear until there is almost nothing left – that is the tale of every fortune’s fool. I can personally relate to this, and I can tell you first hand that no matter the height you seem to have accomplished in your life, you just have to take care, or you will go broke.
Here is a list of financially independent people that are likely to go broke out of carelessness.
- LOTTERY WINNERS AND FIRST TIMERS:
This is a broad category that includes not just lottery winners, but also contractors, sports persons, people appointed into office, etc. When one stumbles over a huge sum of money/position for the first time, he or she can be hurt. Scientists prove that shock of good news can hurt one’s heart just as that of bad news/grief; which is why a lottery winner needs to undergo some counseling before they are announced as winner. This is to help put them in a prepared and stronger state of mind to handle what is to come.
The reason a lottery winner is likely to go broke fast is this, not listening to professional financial advice. They find themselves in a new world of affluent, and they really do not know how to handle it. So, they do what they thought the rich do with their money – spending crazily on irrelevant stuff (a fact that can be hugely blamed on the media). They even get ripped off most of the time, only to realize it after the money is all gone, and they find themselves worse than before they won the lottery.
- PEOPLE THAT ARE WANNABES:
We all have fallen for this at least once – wanting to look as socially and as financially important as our neighbors, friends, family, etc. Wanting to be perceived in a certain way is a natural human desire, but it can only come with hard work and persistence. Faking it usually does not end up well; you’re either of a particular social status/financial or not; there is no way around it. People in this category go through the stress to getting the latest/certain cars, electronics, clothes, residence in a highbrow neighborhood, etc, even when they know they cannot comfortably afford it. Such people are bound to run into debts if they keep living their lives trying to outspend their neighbors, families, and friends. According to a reputable bankruptcy attorney, wannabes find it difficult to face reality and develop healthy spending habits because they want it all at all times, so they spend all of their money, run into debt, and eventually end up broke.
- PEOPLE WHO DO NOT SAVE MONEY:
There are people that are not broke per se, but at the same time, they do not have any savings. Their monthly income is just enough for them to offset their daily bills right before their payment, and heaven knows this such a risky way to live life. People that live like this can end up broke should there be need for extra expenses that is not part of their usual daily bills. If you have no savings, and you find yourself in this category, how then will you be able to handle emergency situations, retirement, education, and other similar needs? Or do you unconsciously believe that you can never be found within the radar of such needs?
We all are not “untouchable”; we are subject to random situations in life, and there is almost nothing we can do to change that. So, it is in our best interest to always factor in savings in all of our budgets no matter how hard it might be. Keep your fingers crossed and hope for the best, but do not forget to keep it real all the time.
- PEOPLE WITH A DISTORTED SCALE OF PREFERENCE:
Here, people put other’s need before theirs. There are a lot of people that are so sympathetic towards others that they fail to see that they need to show sympathy to their very own selves. They are lost in the problems of others, and blind to theirs. They might think of it as a charitable act, but the good book points out that we should always love our neighbors just as much as we love ourselves; so, if you do not know how and when to put yourself first, chances are, you’ll keep going down in a bid to help people around you. These sympathetic souls are usually gullible, have low self esteem, and have misguided thoughts, and as such are always looking for ways to buy love and acceptance with money.
- PEOPLE THAT JUST GOT A BIG FINANCIAL BREAK:
This may sound out of context, but it is not. People that just got a huge financial break are prone to being broke if they do not have the discipline it takes to control their spending habits. They have never had that amount of money all to themselves before, so they find themselves in a confused state of mind which affects them negatively. Also, such people are bound to give deaf ears to anyone that may want to give them useful tips on how to manage their spending.
Why do people like this fail to maintain a stable financial life, even with their big break? The reason is simple, and I will explain it with my personal experience in the matter. Right after I left the university, I tried a thing or two in order to earn an income, but they were not fulfilling to me, so I quit and faced one of my passions – writing. It was not easy considering a whole bunch of factors, but I was not going to let go; I was ambitious. After a while, I started earning tiny stipends, and I was really happy and encouraged. With time, clients started hiring me repeatedly, and I was getting more work than I can handle. So I decided to turn some of them down, but not out rightly. I will tell my clients, “I’m sorry, I cannot handle your project at the moment because I have so much on my table, but if you will pay me 5X, I can treat your project with preference”. I was half hoping they will say “NO”, but some of them stayed back. It went on like that, business was good, growth was obvious, and all that. One faithful day, I got a request from a big client to handle the task of rewriting every article on a certain website; I’m talking about thousands of articles with good pay. I jumped on the offer, even outsourced some of them; and I made the mistake of rejecting work from other clients that wanted me to write for them. After seventeen months, the job was all done and everybody was happy. But I had already scared all of my clients away and was stuck with no clients, but then I had some crazy money that confused me and got me to start feeling laid back about my work. I tried to get some clients, but for one reason or the other I couldn’t. I got lazy, went on a spending spree, and after I while, I was close to bankruptcy. Thank goodness, I’m back to work again, and I’ve learnt my lessons.
About The Author
Uchechi Nwancho Ann (@ucannwrites) is a professional freelance writer, dancer, confidence coach, and investor. She specializes in developing effective sales generating contents for B2B and B2C companies; and strongly believes in making mighty oceans from consistent tiny drops of water. You can checkout her business site – writematics.com.
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