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

[kryptqnick]

To be honest, I don't think it's common for people who were rich to become poor. People don't often move significantly up or down between social classes, and if you're rich, it's not so easy to lose your wealth, mainly because it's usually diversified and isn't even all material: you have impressive symbolic capital in forms of powerful connections and relatives. So it can be that a person  has issues like an addiction, losing too much money and also having relatives who are unwilling to continue funding it. Or it can be that a person had a bit of wealth and was always in a fragile situation, and mismanagement or external circumstances caused the loss of what a person had. It can also be a result of running out of luck (if a person won a lottery before or won by gambling).

[lixer]

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 could be multiple reason, but some that I think might be the cause are:

1. They got really lucky, but luck didn't favor them till the end.

2. Greed destroyed them. They were doing good, had everything, now wants more but ends up taking wrong decisions resulting in an irreversible disaster.

3. They probably got lazy, wasn't working as hard as before and ended up losing everything.

4. What they had was no longer sustainable due to "economic changes".

I don't think it's all about luck that made them a fortune but there must also be a hardwork involve in it because they are investors and not lottery winners. Greed may be one of the reason on why they got bankrupt. There are many cases like this. Ftx did also got bankrupt because of this. They are using the people's money to grow their company more but they miss calculate the risk. Number 3 is unlikely but number 4 is possible.

Economic changes can be devasting to everyone but I think if we are well prepared and have different plans, we might survive its blow. We can lose big but this shouldn't discourage us to strive harder again. We must believe that we can recover.

[Vaculin]

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.

Yes. Debt is something like a trap that will eventually pull you down and make your life turn into disaster. Although it’s also a case to case basis, but if you can’t make your way out from debt, you’ll definitely be stuck in there. The reason why even a used to be financially and well to do investor ends up into nobody because he can’t get out from that situation until all his possessions have gone to thin air.

[usekevin]

When the poor people become a rich,he will try to keep their status to the new status.Surely he will work hard to keep remain with rich man status.But become a rich is easy one,it’s very hard to keep the status for the long while.It need more hard work as compared to the previous one.You had mentioned a rich man became a nobody by the investing.But this not seems to be the real.Because as we know they will become rich with more knowledge and business investigation.So how you say they invest in certain coin with out any investigation and become a poor one.It’s not seems realistic.

[carlfebz2]

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.

Yes. Debt is something like a trap that will eventually pull you down and make your life turn into disaster. Although it’s also a case to case basis, but if you can’t make your way out from debt, you’ll definitely be stuck in there. The reason why even a used to be financially and well to do investor ends up into nobody because he can’t get out from that situation until all his possessions have gone to thin air.

Try to make yourself get out from that shackles of debt and you would really be living a life which doesnt really have that full of worries.This is what im trying to achieve or reach out on speaking about trying to

solve or pay out those debts on next year target because its been a while that i've been keep on paying with those huge interest.The main reason is that i mishandled the use of credit cards which really make

things even more hard for me on the time that it would really be needing to be repaid.If you dont have that right or proper control when it comes to your funds
and spending then surely you would be fucked up in the end of the line.

[DaNNy001]

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?

That's a normal sequence of life. The circle keeps rotating and only the wise ones can skip out from the matrix and not experience the dreadful downturn.

Its also depends on how the person handle his way of living and most times when the struggle of life get to us we then get ourselves involved in loans and depts and if you are very unlucky you will be entangled in it and before you know it you have really got yourself in deep shit.

Most times its on investments we deep ourselves into. In the course of trying to make more money for ourselves we then involve ourselves in many investments we are not certain is gonna yeild profits like investing in centralized platforms and when it goes sideways we are the ones that normally bear the consequences and before you know it from there you involve yourself in dept to rescue yourself and the more you try its the more you fall into the pool of financial distability.

[jrrsparkles]

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?

Its quite odd to see the terms financially stable and downfall because one who is financially stable will be having good strategies that is how they became stable.

If you mean the rich people as stable then I can answer it, someone who is rich can be broke in no time if they are not disciplined with their investment or business. When it comes to business one who didn't catch up the trend will fall and in investment when they invest on wrong companies they fall.

[gantez]

Most times its on investments we deep ourselves into. In the course of trying to make more money for ourselves we then involve ourselves in many investments we are not certain is gonna yeild profits like investing in centralized platforms and when it goes sideways we are the ones that normally bear the consequences and before you know it from there you involve yourself in dept to rescue yourself and the more you try its the more you fall into the pool of financial distability.

The problem is not invest in centralized exchange but if keeping your coins in there but to have it staying there during when you are ready to do the trading if you are one of the traders. What is better is to do invest in things we can profit and not locking the money in investment not yielding us money. Doing our research is to be proper in doing that.

[tabas]

Vices and other unwanted hobbies.
I've known people that have been living well but they're not wise on keeping their wealth through investments. They've lived like a king for a few years and bought things like a one day millionaire.
It's all about how they're too committed in remaining rich and that's what the actual rich folks do, they're doing everything they can to reinvest and make their money work for them so that wealth they've got won't vanish in vain.

[Davidvictorson]

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 reasons why we see that a lot of persons or some persons who in time past we're very rich became poor or broke after sometime. Walter Winchell, said being nice to people on your way up because you might just meet them on your way down. I cannot over stress the importance of human relationship. In fact it is more important then how much you make. One of the reasons why a lot of investors become broke after sometime and the go into obscurity is because a side business shrewdness they were not just nice to their colleagues to their fellow investors to business partners and to just all the regular people. So when they encountered or fell on hard times, the people who would have shown up for them, the people we would have come through for them, turn them down these people hid opportunities from them these people heed help and resources from them. So they went broke because they already in time past had build a wall instead of a bridge.

[BigBos]

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?

It is true, as I have noticed, that from generation to generation there has always been such a thing as ups and downs in every circle of entrepreneurs, and this can happen due to several reasons that occur in the entrepreneur or the type of business.

Businessman
1. Severe Illness (Physical/Spiritual)
2. Old
3. Has no successor
4. Accident/death
5. Poor financial management
6. Careless decisions


In Business
1. Not innovating
2. The resulting product is boring for the market
3. Distracted
4. Not adapting to the times
5. There is Corruption
Maybe there are many more that can cause someone to go bankrupt in their business, but from what I've noticed so far most are like that.

[Tony116]

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.

Yes. Debt is something like a trap that will eventually pull you down and make your life turn into disaster. Although it’s also a case to case basis, but if you can’t make your way out from debt, you’ll definitely be stuck in there. The reason why even a used to be financially and well to do investor ends up into nobody because he can’t get out from that situation until all his possessions have gone to thin air.

How can someone with a large amount of debt be considered financially stable or wealthy if they have a lot of debt?
In my opinion, rich people suddenly fall into debt and go bankrupt, maybe because they are too greedy, want more and think they can win it all but the result is the opposite. People who get rich quickly often look down on their competitors as well as think they are talented and egotistical, so they usually pay the price soon.

[Bitstar_coin]

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?

My take is, if you work your way through to the point at which you can be considered as financially stable it will be hard to just suddenly give up working hard to maintain a good financial position. Except the money you started with was borrowed from the bank and you could not repay the money, the bank will take action, send you back to the bottom 

Or you somehow got hold of free money as a public office holder and set up a business with no clue on how to run it, some employees help you mismanaged the funds and send you straight down to the bottom.

Or the person suddenly fell ill and could not manage their business anymore, left it in the hands of lazy and greedy family members who wrecked the business down completely. There are different reasons that could lead to being from grace to grass.
But my own view point is, anyone who struggle to build a business from the scratch with so much hard work and dedication will not suddenly give up doing so except something happened.

[Marcellin9]

A well to do investor here is quite a loose term. If the investor is already rich before he has funds to invest with, high chances are that he won't encounter a financial downfall even the investment is not that good. The reason is obvious, his financial stability has trained him to be careful with what he has owned, otherwise all wealth will be easily gone for many reasons. If the investor's moeny is new accumulated or loaned from banks, it will be likely that he goes broke when the investment turns to be a failure. I believe whatever the case is, it all comes down to the person's personality and capability. Knowing where you were, where you are and where you are going to be is the fundermental reason to split people into sucess and failure. If what you have is net worth and you always live a lifestyle within your means, high chances are that you'll remain rich and well. If not, turning from grace to grass is not a surprise at all.

[KingsDen]

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

Poor financial literacy. Many people don understand how money works, especially the people that inherited wealth from parents. They wouldn't know how their parents suffered to  build the wealth and it won't be so difficult to mismanage it.
Some are faced with so many family challenges, before they will understand, they wouldn't know how time flied and they may lose their job.
Some had wrong investments and when this happens when they are not single, it will become a very big problem for the family to handle.
Some are scammed, we shouldn't count this out. People are often scammed till they exhaust all their money and even go borrowing

[Iroh]

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. 

Yeah, living way beyond your means also would in most cases cause a decline in wealth and would very well cause literally anyone to go flat broke in a short amount of time.
An increase in the standard and style of living is always welcomed. But for some, cutting back on spending when income levels is dwindling is not acceptable as they’ve adapted much too quickly to the life of affluence. The saying,”cut your coat according to your cloth” has never been more right in this situation.

[stomachgrowls]

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. 

Yeah, living way beyond your means also would in most cases cause a decline in wealth and would very well cause literally anyone to go flat broke in a short amount of time.
An increase in the standard and style of living is always welcomed. But for some, cutting back on spending when income levels is dwindling is not acceptable as they’ve adapted much too quickly to the life of affluence. The saying,”cut your coat according to your cloth” has never been more right in this situation.

On the time do see their earning or income had been improved then this is where their lifestyle would be improved as well on which its not really that shocking or surprising anymore and ends up on forgetting that they

should really be having still that kind of control or budget and to mind off on having a balance in between their income and their spending or simply with expenses.On the time that you arent that too mindful

about this stuff then you would eventually be finding  yourself into a big problem since you would really be that be in debt since your income
cant compensate on things that you are spending.

[South Park]

Yeah, living way beyond your means also would in most cases cause a decline in wealth and would very well cause literally anyone to go flat broke in a short amount of time.
An increase in the standard and style of living is always welcomed. But for some, cutting back on spending when income levels is dwindling is not acceptable as they’ve adapted much too quickly to the life of affluence. The saying,”cut your coat according to your cloth” has never been more right in this situation.

This is something very common especially in times of crisis, people very quickly get adapted to a lifestyle and as soon as they do it is inconceivable for them to lower it anymore, this happens very often with sport starts or artists that have very short carers, so even if they get success and a lot of money during a few years they do not realize they need to make that money last for the rest of their lives, but instead they spend all of that money in a few years and face bankruptcy as a result of their poor money management.