This blog is intended for educational purposes only. None of these posts are meant to give legal or financial advice. If you need advice you should consult an appropriate professional.

Thursday, October 27, 2011

riches to rags

We've all heard stories of people going from rags to riches, but what about individuals who go the other direction.  I don't mean to be pessimistic with this entry.  I'm just trying to look at something that's not talked about a whole lot.  Whether through misfortune, bad decisions, or both some people go from the top to the bottom.  You have many lottery winners who come into sudden money and don't know what to do with it.  They think the sky is the limit while buying all kinds of contraptions.  The same rules of money apply to everyone no matter what your level of affluence.  It boggles my mind to read stories of rich and/or famous people who make really bad decisions regarding money.  In theory it should be a one way trajectory for those with a high income.  Up!  If you keep your expenses at a manageable level while raking it in wealth building can come in short order.  The strange thing is this is not a given.  I must say it has to be hard to go from having much financial security and material possessions to very little.  If you never had it I don't think you would miss it.  So the whole thing is just because you have it today doesn't mean you always will.  One good lesson to be learned from this is riches are uncertain.  It's good to respect money and treat it well, but don't trust in it or worship it.

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