From grace to grass:Reasons why a Well to do investor turned a nobody.

[hugeblack]

I remember that story of one of the basketball players who was fired because he refused to take off a ring that he received as a gift in one of his matches, and it is unfortunate to see how people's lives turn into hell because of the financial situation.

The reasons, in my view, are poor financial culture and the belief that the current job will last, and then building plans according to this job.
The economy is getting worse and better, but poor financial literacy is what makes you poor

[1715262048]

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[1715262048]

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[1715262048]

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[Crypt0Gore]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

There are many jackpot lottery winners in the world today that still end up poor due to a reason or the other, the most common reason is mismanagement of fund.

Change is very constant in people's life, this is why you need to be careful which advice you take from people and which new people you start mingling with.

In time a business can lose interest in the world that's why we need to be open to new ideas, do not be too reliable on your business especially if it's kinda old, things change pretty fast this days.

[Genemind]

Both my parents were both businessmen and these bad habits that my parents had made our family from riches to rugs.

1. Mismanagement of funds. They spend more than what they earn.
2. Being to comfortable with current lifestyle.
2. Getting too involved with family matters/helping the wrong people who take advantage of your wealth.
3. Both of them were consumed by too much vices (Drug, Alcohol, Gambling, etc.)
4. Opening a business without planning ahead or back-up pan.
5. Getting a huge loan without any sustained cash flow.

There are actually too many to mention, this all happened when I was young and I'm happy to experience both ends. From living a rich life and starting way back to zero and crawling my way up to the top again.

[Jody.Drummer]

Many factors influence why people who are initially established and stable become people who are said to fail.
Strategy, strategy is important in maintaining the stability of what we do, I'm sure they must realize how important implementing strategy is in maintaining the balance of a business or something that is done. If they fail to set a good strategy then they will soon meet with failure.
Unhealthy money circulation is also another factor why many people fail. Financial management is the main thing that must be considered, this can be said to be a determinant of future conditions in my opinion.

[Zanab247]

Here are some of the reasons people turn from grace to grass:



1) Bad attitude is one of the thing that can reduce you to nothing if you don't change or eliminate it, because we have heard how many hard working investors been scammed in the community by the scammers who want to increase in wealth not knowing that evil is ahead of them to bring them down to nobody.
2) lack of personal research can make you to reduce to nobody in the community, if you don't embrace the knowledge of research before investing in digital investment because many people has invested their money in a wrong project without carry out their personal research to know if the project is real or fake before investing.
3) Greedy can make someone that is doing well before to reduce to nobody in the future,  if he or she don't eliminate the spirit of greedy from their minds because there are some people who will never sell their coins when there is a bull market than to hold till the bear market will meet them again.

[Zaguru12]

Firstly I will blame how the wealth was first acquired. Some self assumed rich people get riches from peoples livelihood either embezzlement or corruption. This people are the politicians of these day. If they leave the seat they just lavish there money and it goes up like flames.

The second set of people that go poor after been rich are those born with silver spoon. These people have lived there lives extravagantly and when left with the wealth, it tends to crumple in their hands

[teosanru]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

I think 80% of these people lose it because of their stupidity and the rest 20% lose it because of their luck. Imagine if you are someone who just moved his savings to FTX to exchange some into some coin that you think will do good and the next moment you see FTX withdrawals getting stuck and going into bankruptcy. What can you say to someone who is in this situation? He didn't do anything wrong at all. He just wanted to move his coins to some other coins and then take them back to private keys, these type of people will fall in the luck category, rest 80% do things like buying shitcoins or NFTs which ultimately lose their values, basically making wrong investment choices.

[South Park]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

In my experience the main reason for this to happen is having too much debt, and when an unexpected event happens which force them to get even more debt then it becomes too much for them and they go bankrupt, it is my opinion that governments, businesses and even people manage themselves as if the good times will never be over and the bad times will never come, this creates the illusion they are doing very well but as soon as they have to face adversity they fold like a cheap suit.

[Finestream]

People have a hard time adjusting to new things it's a sign of aging. When you're young you can change as much as you want and have less you need to spend on too but as you get older you become more static and fixed (if you fall into the trap I guess). This is for the few % of people that don't fall under mk4's 3 other methods.

Some people just get bored and give up or try to find themselves in younger people and lose their money that way.

Not just adjustments, but maybe some people have just become unproductive in the long run regardless if they have been considered long time investors in the crypto market. I know changes are the only constant in the world, and these investors may have never taken full efforts on making them more productive and profitable, and by staying effortless and more confidence that they can still do it, that may be the start of their failing investing career. I guess aging in one way or another is also one big reason of it.

[Russlenat]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

Maybe they’re too scared to lose their money again and fail to understand the concept of compounding gains. With that, they become more static and chose not to take risks anymore not because they are already satisfied seeing their status financially but it’s more on the fears that if they create a single mistake, everything will fall unexpectedly. So if they are not improving anymore, then they will eventually lose again in the end.

[Kasabus]

I remember that story of one of the basketball players who was fired because he refused to take off a ring that he received as a gift in one of his matches, and it is unfortunate to see how people's lives turn into hell because of the financial situation.

The reasons, in my view, are poor financial culture and the belief that the current job will last, and then building plans according to this job.
The economy is getting worse and better, but poor financial literacy is what makes you poor

Yes, they could be real life reasons why such players or investors fail in the end. Aside from that, the fear and greed are usually the big reasons why an investor has not maintain his wealth and earnings because he chose to focus on himself without considering the changing environment that sometimes keeps better or worse depending on how a single individual views it.

[Distinctin]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

This is very true as a lot of highly regarded investors have lost their spotlight and have doom into losses. For me, having too much greed is a big reason too, and being incapable and incompetent too will also make you lose in the end. As people get more mature, some may have lost their focus too and fail in their used to be profitable investments.

[BitDane]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

I believe these people become complacent and lazy of updating themselves or dig more information before deciding to invest or to keep their investment.  Since they had proven their strategy to be good, they failed to reconsider everything.

One good example is SBF, he said he is well versed with risk management and let us believe that is true.  He admit that he become too confident and "trusting" and never take his time to look at the FTX situation which he admit that he should be.  So laziness is also another factor why a rich investor become a nobody in no time.

[Merit.s]

For a business to fail it means that the owner didn't understand some certain factors about his business.
1. In business, there are weakness and strength. Strength means those activities that are carried out which makes the business grow, while weaknesses are those things we fail to do which brings the business down during competition in the market.
He didn't notice the weakness of the business, if he knows he can work on the weakness of the business and turn in into strength of the business.
2. Good customers relationship : For a business to keeping progressing,there is need for you to keep good relationship with your customers, make them feel free to contribute on the business and also suggestion because they are the one patronizing you. If your business is lacking behind, they will be the one to let you know that you need to add more quality if not they will not patronise you anymore and that is the truth. All these are very important for a business to progress and when not considered, it can lead to failure in your business.
Government policy can also lead to business failure.

[Oceat]

Whose the subject here?

Do you mean those from the top like the known exchange then go to the bottom?
Well, in life, don't think you won't suffer from downfall because everyone does and there's always a turning point where you are today. It's the cycle of life although, this depends on the person whether she/he wanted to fight for a change or continue their life with an acceptable defeat.

Being an investor takes a risk and knowledge of the market so that your investment won't go as a donation it's just how well knowledgeable the person is to handle all of the situation.

[Wexnident]

I reckon most people who can create a stable business should be rather capable enough, so the most probable reason was they didn't perform well enough. It may be not performing well enough to combat the weakness of whatever business they made, most of which reliably run well early on but without the owner building its foundation constantly, it just collapses. Might be that they got greedy and made an overambitious investment without any plan to fall back on, might have even been ruined by another business rival. In the end, it's just that they failed in something, whether it be in connections, investment, planning, etc., in general, the foundations of a business.

Not that some factors are their fault though, there are just some instances where outside factors can fuck you up really well, regardless of the countless backup plans you have.

[xSkylarx]

The number one cause is they are too greedy and can't manage their money well. In every aspect, greed is really bad, which is why it would cost you a lot. Most of the investors or other people that got rich and we saw their downfall mostly because of greediness in getting more profit, which they will invest all of their assets since they expect to win but turn out not to, and also because they can't manage the money well, they keep spending without being noticed that there is no money going in to the person, so it will lead to losing all of your money.

[AicecreaME]

So many times we see people who were financially bouyant and stable reduced to nothing in the society,is it because they failed to strategise well?or could it be that they no longer put in the much effort they put before that got them to the level they were?what can actually be the cause of the downfall of someone who was already stable financially?

Lack of solid plans, more random decisions that are made in a very short amount period of time, in short, they lack patience or they got too arrogant to the point that they think that they can do anything because they have a lot of money. The other thing that I could think of is that they lack on financial management, like a good one, that is why they carelessly spend their money on to something they think that is a good investment but it turns out that it is not.

If it is about business, I think they made the wrong choice in their product, or it doesn't fit on the place where they started the business. If it is something like cryptocurrency maybe they invested in a project that is all about sugarcoated promises to fool people.

[Kakmakr]

The biggest mistake that most people do is this :

They scale up their living conditions and assets with the increase in their income. So to explain this....

When you earned say $10 000 per month, you bought a small car and your payment was small and you also bought a small house and your bond payments matched your income. 

Now, you get a good increase and you buy a more expensive car and a bigger house. So a more expensive car, come with higher insurance and a bigger house have more maintenance and before you know it.... you are maxed out again.

Then the economy take a knock (Like Covid & War) and governments increase interest rates to protect themselves.... and your car payment increase and also your bond payments. So, before you know it, you cannot afford the car anymore and the bond payments on the house is to big.... so you have to sell it. 

Tip : Do not compete with the Jones's ..... buy a good second hand car and a smaller house .... and stay healthy. 

[inthelongrun]

There were many reasons why some huge successful investors failed later on. I have 2 reasons in my mind.

1. They failed to innovate. Your strategic success doesn't guarantee to become effective in the next months or years. This is proven over time in technology and even in trading and traditional investing. Change is constant.

2. Being complacent. There are a lot of sayings about being contented with what we have at the moment and being happy with it. But the thing is, we humans couldn't reach this stage if all of us stayed complacent. We should continue to grow.