Many people normally say, "If I have lots of money, I will be able to pay out all my debts and all my problems with money will be over." That may be partly the reason why many people join lotto draws or any other contests in the television.
One of the main reasons why rich people lose all their money is they are not used to handle new money problems. Some people who have grown up without money really have no idea on how to budget and handle lots of money. So the tendency is they just spend the money like there is no tomorrow.
If they are not trained to handle such a large amount of money, depositing the money in a bank is their first step that they are going to do and then eventually lose all the money in the long run. This situation is true with some lottery draw winners who win lots of money and in approximately two years time, they will lose everything.
People who have lots of money tend to become not the same person as before. Some become gambling addicts, or they travel to other countries with the family or even go shopping here and there and buy luxuries they do not even buy before.
Business venture is the first thing that people engage in when they have lots of money. They may even invest without the proper education on finances. Others do have the business instinct even if they do not have the formal education. But that comprises only a minimal few of the entire population.
In addition, people who have lots of money do not know the difference between the good and bad expenses. They do not know what is an asset or a liability.
As Robert Kiyosaki said, "Most people eventually lose their money and go broke because they continue to think like a poor person and poor people want a high income and low expenses. If you don't make this switch in your head, you will always live in the fear of losing money, trying to be cheap, trying to be frugal, rather than being financially intelligent and becoming richer and richer."
If you desire to be rich, a plan must be sorted out on how to make money and a plan must also be done on what to do with all the money before it even enters your wallet. If no plan is done beforehand, the money will be lost faster than we made the money.
Let us change our viewpoint about money. We need to learn and study how to boost our knowledge on finances specifically the basic money management. It is with continuous learning that we will be able to know the possible steps we need to do. And if something unavoidable happens, we will be able to live through it as we will be ready to face the difficult times ahead towards the way to freedom from debt and financial independence.
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