Too Rich to go broke? - Learn how to keep your money

Let's say you are making $500 or more each week after tax. This will amount to $2000 per month and subsequently lead to $24,000 annually.

Is it possible for someone with this earning to ever go broke in their lifetime?

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Before you think about this, here is a fun fact;

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With Nigeria's minimum wage currently valued at #30,000 ($57) plus tax, many people do not get to earn $24,000 throughout their 35 years of working experience.

Now you know!

$24,000 per annum is not a joke in many parts of the world. I'm pretty sure that it's a big deal for a lot of people in many countries, mine inclusive. Earning this type of money comes with a paradigm shift in the standard of living and it's usually visible in the type of luxuries such people spend on.

I've heard of people that make the type of money that they logically should never be able to spend in their lifetime, but once in a while, to my greatest surprise, I also hear of the same people going broke to the extent of selling off their Cars and properties for survival. Some of them end up with debt so big, they can never pay it off.

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What went wrong?

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I have been thinking about this for a while and every arrow shows that it's no longer a surprise to see how a lot of people manage to go broke despite previously being high net-worth individuals.

For the most part, it can be traced to their poor financial decisions.

Back in the day, I learnt that one of the guaranteed ways to face financial ruin can be traced to poor financial security. To be financially secured, a lot of conscious effort has to be made and it needs to be visible in our spending.

• Where do you spend your money?
• How much of your earnings do you spend?
• What do you hope to gain by spending that money?

By merely answering these questions, you will be able to know if your decision will lead you to more wealth or set you on a path of poverty.

In addition to the above, you might be surprised to know that many people have worked for a decade and they are earning a good income, but they still don't have a good investment. Lol.

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Woe betide anyone that is thinking that he/she is too rich to go broke.

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In case you find yourself in a position where you make a ridiculously high amount of money, take note of the following to avoid regret;

Reckless Spending: The downside of reckless spending is open for all to see, but it's still surprising to see how the default thing on people's minds is to increase their expenses whenever they get more money. When you resort to buying more cars because you got a promotion, it doesn't count as a good spending decision. Such act will most likely come back to bite you when you least expect.

Making Bad Investment: I have to admit, investment is a dicey area to get involved with. You can never be too sure about what the outcome would be. In most cases, if the investment yields a good return, we call it a good investment. If it wrecks our capital, it becomes a bad Investment. I guess we can't outrightly blame anyone for making a bad investment, but it's always advisable for people to do their due diligence before investing in anything.

Gambling is a No-no: Some gamble for the fun of it, while others do it with the hope of hitting the jackpot. Nonetheless, it's one of the ways to cripple people's financial position.

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There is quite a mouthful of reasons why a rich person can become broke over time, but a good financial plan and common sense will make it easier for people to steer clear of things that increase their chances of getting broke.

Let's Be wise!

Shall We?

Thanks For Not Missing Any Full-stop Or Comma
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