Here is an usual article, I wrote this following something that I read on the new york times, the millionaire growth in the united states is growing rapidly and some millionaires don't know where to spend their Money. One rich guy said in the article that he has soo much money, he doesn't see himself or his family going broke anytime soon.
Then I started thinking about the different possible ways of going broke and came up with the following list, that millionaire guy can use this list if doesn't know what to do with his money...
Addiction
When you become addicted to something you do not realize how much money you spend on your addiction. You can be addicted to drugs, gambling, sex, alcohol, shopping and even video games. You have to manage your lifestyle carefully and beware of the problem in hand if any. A way to prevent going broke due to addiction is by controlling or even avoid any urges that you may have. If you can't control it then find help immediately. Try to find different hobbies and change your lifestyle for good, or else you will become broke and lose all that you love.
Business
They say 9 out of 10 business will fail and that is true. Why? 2 reasons, you invested all your money and became emotionally attached to your business or your partner has a totally different vision for the business. Either way those are 2 negative elements that you must avoid in business. Never invest your own money in your business and don't get a partner just to have partner. Take your time before launching a business, do your homework find what is right for you and for your business separately not only what is good for you. Also do not get emotionally attached to your business this can be very costly in the long run and you can lose it all.
Credit
In our early adult life credit is available everywhere and banks will come get you by offering personal loans, credit cards, car loan, student loans and so on. What we do? We apply for them since we are in college and need money we finally get a student loan, then comes the first, second and third credit card. Then you get out of college in your mid 20's out in the real world still finding a job but yet you still have live and the creditors are waiting for their monthly payment. So what do you do? Work your whole life to pay your credit or loans, because with time the interests only increase and that is what banks love. So you get no choice to work all your life to pay them or go broke declaring bankruptcy. I highly suggest for you to get only 1 credit card and stay away the most possible from loans.
Overspending
We currently live in a consumer society where we buy more than what we actually need, this is a big problem and it can make you go broke. Why do you need 150 pair of shoes when there are only 4 seasons and 3 months in each season? Overspending doesn't apply only to fashion items but also to groceries, real estate, cars and other items that you can't afford. Why do you need a boat if your mortgage is not paid yet? Did you know that 3/4 of what we buy at the grocery store goes to the garbage? The problem here is stop spending to impress your eyes or other peoples eyes, spend just enough for what you actually need. Look around you right now Im sure you can find 3-4 things that you used once or that you bought and don't even use! The key here control your spending before you start buying stuff that you don't need with other peoples money, you will go broke in no time.
Investing
Investing can be a great source of income don't get me wrong, but smart investing is rare. People invest based on emotions instead of investing based on results. You will give your nephew money to open a restaurant simply because he asked you to. What you do? You say yes, but you didn't ask for a business plan and you didn't know that around the corner there are 8 other different restaurants with the same style has his. You didn't ask for a business plan or financial projection to see the results so you did an investment based on emotion. Another example you go to your bank and your financial advisor tells you to buy mutual funds and tells you that is guaranteed money you will never loose and in 10 years you will be happily retired on the beach with your wife, you don't know better so on the spot you say yes and invest all your money. So again you invested based on emotion a picture that your financial advisor painted and said that your money is guaranteed did you read all the terms and condition have you done any research on this financial institution to know in what companies they invest? By simply doing your research and homework this can save you financially. Not caring or not knowing where you are investing can make you go broke!
Scams
Everyone has received a phone call or an email saying that you are rich and there is an account with millions of dollars in your name overseas. So what you do? You get interested and decide to give it a try so what they will do is ask to send money so they can unblock the account, what they will actually do is empty your bank account without you knowing. This is just one of the many scams there are out there. There are so many scams or pyramid schemes that can make you go broke. The only advice I can give you is if it seems too good to be true then its a scam, don't fall for it.
So there you have it 6 ways to go broke hopefully you do not intent in going broke anytime soon, this was simply to help you realize what not to do or what not to get into as it might result in losing all your money. If you do want to go broke then that is your choice and you can try all of those lol :P.
Hope you enjoyed this weeks edition of 6 ways to, send me an email if you have any requests for the next 6 ways to, I will be happy to publish something on your topic, Cheers!
Then I started thinking about the different possible ways of going broke and came up with the following list, that millionaire guy can use this list if doesn't know what to do with his money...
Addiction
When you become addicted to something you do not realize how much money you spend on your addiction. You can be addicted to drugs, gambling, sex, alcohol, shopping and even video games. You have to manage your lifestyle carefully and beware of the problem in hand if any. A way to prevent going broke due to addiction is by controlling or even avoid any urges that you may have. If you can't control it then find help immediately. Try to find different hobbies and change your lifestyle for good, or else you will become broke and lose all that you love.
Business
They say 9 out of 10 business will fail and that is true. Why? 2 reasons, you invested all your money and became emotionally attached to your business or your partner has a totally different vision for the business. Either way those are 2 negative elements that you must avoid in business. Never invest your own money in your business and don't get a partner just to have partner. Take your time before launching a business, do your homework find what is right for you and for your business separately not only what is good for you. Also do not get emotionally attached to your business this can be very costly in the long run and you can lose it all.
Credit
In our early adult life credit is available everywhere and banks will come get you by offering personal loans, credit cards, car loan, student loans and so on. What we do? We apply for them since we are in college and need money we finally get a student loan, then comes the first, second and third credit card. Then you get out of college in your mid 20's out in the real world still finding a job but yet you still have live and the creditors are waiting for their monthly payment. So what do you do? Work your whole life to pay your credit or loans, because with time the interests only increase and that is what banks love. So you get no choice to work all your life to pay them or go broke declaring bankruptcy. I highly suggest for you to get only 1 credit card and stay away the most possible from loans.
Overspending
We currently live in a consumer society where we buy more than what we actually need, this is a big problem and it can make you go broke. Why do you need 150 pair of shoes when there are only 4 seasons and 3 months in each season? Overspending doesn't apply only to fashion items but also to groceries, real estate, cars and other items that you can't afford. Why do you need a boat if your mortgage is not paid yet? Did you know that 3/4 of what we buy at the grocery store goes to the garbage? The problem here is stop spending to impress your eyes or other peoples eyes, spend just enough for what you actually need. Look around you right now Im sure you can find 3-4 things that you used once or that you bought and don't even use! The key here control your spending before you start buying stuff that you don't need with other peoples money, you will go broke in no time.
Investing
Investing can be a great source of income don't get me wrong, but smart investing is rare. People invest based on emotions instead of investing based on results. You will give your nephew money to open a restaurant simply because he asked you to. What you do? You say yes, but you didn't ask for a business plan and you didn't know that around the corner there are 8 other different restaurants with the same style has his. You didn't ask for a business plan or financial projection to see the results so you did an investment based on emotion. Another example you go to your bank and your financial advisor tells you to buy mutual funds and tells you that is guaranteed money you will never loose and in 10 years you will be happily retired on the beach with your wife, you don't know better so on the spot you say yes and invest all your money. So again you invested based on emotion a picture that your financial advisor painted and said that your money is guaranteed did you read all the terms and condition have you done any research on this financial institution to know in what companies they invest? By simply doing your research and homework this can save you financially. Not caring or not knowing where you are investing can make you go broke!
Scams
Everyone has received a phone call or an email saying that you are rich and there is an account with millions of dollars in your name overseas. So what you do? You get interested and decide to give it a try so what they will do is ask to send money so they can unblock the account, what they will actually do is empty your bank account without you knowing. This is just one of the many scams there are out there. There are so many scams or pyramid schemes that can make you go broke. The only advice I can give you is if it seems too good to be true then its a scam, don't fall for it.
So there you have it 6 ways to go broke hopefully you do not intent in going broke anytime soon, this was simply to help you realize what not to do or what not to get into as it might result in losing all your money. If you do want to go broke then that is your choice and you can try all of those lol :P.
Hope you enjoyed this weeks edition of 6 ways to, send me an email if you have any requests for the next 6 ways to, I will be happy to publish something on your topic, Cheers!
