Everyone dreams of getting rich, but it takes a lot of effort, patience, and sacrifice to reach that point. The world is full of inspirational success stories revolving around 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 right planning and strategy.
To be rich is one thing, but to stay rich is a completely different story. Not many people know the art of maintaining their wealth, and they end up falling back to where they started. In worst cases, even lower than that.
The above-mentioned inspirational figures 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 possible to go from riches to rags!
Seeing the name of the King of Pop, Michael Jackson, on this list may come as 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 legend of pop music 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. 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 star of Mean Girls, Lindsay Lohan earned her name, fame, and wealth in Hollywood. Although 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. Her extravagant lifestyle and legal troubles have made it difficult for her to keep her head above water.
Traits of the Rich and Foolish
Spending more than Earned
One of the major 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 that remain financially secure. It is a strategy that is used to maintain their wealth. They spend only on their needs. 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 must not be anyone’s financial goal. Instead, it takes hard work to build your wealth and remain that way throughout your lifetime. It is something 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. To maintain wealth, a person needs a full-fledged financial plan and a responsible work ethic. It is not a trait that many possess, which is a major reason why only a handful of people stay on the top of the list as the world’s wealthiest people!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-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure 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.