It would seem that poor people who suddenly find themselves instantly wealthy would spend wisely and be frugal. In reality, most people who find themselves suddenly rich, like the dot com crowds and lottery winners, spend like crazy. Huge parties. Lavish homes. Tons of toys.
2006-07-08 06:57:09 · 11 answers · asked by lu_dicrous 3 in Social Science ➔ Economics
Wealth is long - term and a learned behavior.
Rich is a temporary state (short term) with little to no behavior modifications.
1. If you're born into wealth, your wealthy parents teach you how to spend money and how to make money.
2. If you earn your wealth, then you've learned the steps to get there ... savings, and self denial.
An analogy is when a fat person gets lipo-suction ... instantly, they're thin, but they never learned how to control their eating, so they keep the same eating habits, and get fat ....
So does a person who instantly gets rich ... they've never learned the skills to preserving and saving the $$$, so it usu sally is only a short joy-ride in their life.
2006-07-08 08:10:21 · answer #1 · answered by Giggly Giraffe 7 · 1⤊ 0⤋
Because they played in the lottery to begin with, not to live comfortably for the rest of their days, but because they wanted to have a taste of what it was like to live like rich people do.
People dont play the lottery so they can keep living like they are now, but with insane amounts more money.
So they buy a lottery card, and they win millions, and then they get to see what its like to be able to waste millions, and then their money runs out and then starts all the "if only"s and "should have"s, and in the end they get the exact thing they wanted to begin with.
The whole lottery thing is a stupid idea to begin with. Generally if you are the type of person playing the lottery, you arent the kind of person who actually wants to work and earn it AKA who deserve it.
Laziness is killing America.
I don't have any money now, but I am working a full time job and going to college which I am paying for out of my own hard earned paychecks and thats because I am not going to be the lazy person complaining I don't have money when I could be the person who worked and put forth the effort to get where the big dogs are.
Impressario Raiddinn the Beatdropper
2006-07-09 17:19:31 · answer #2 · answered by Raiddinn Beatdropper 2 · 0⤊ 0⤋
The handling of moneys is not an easy thing ,First rule it does only 2 things shrinks and grows thats it.People who have not had a chance to learn these principles tend to only learn by experiance and poverty does not train you to deal with large amounts of money in a educated way.Thats some of the reasons anyway.
2006-07-08 18:13:58 · answer #3 · answered by Dan B 4 · 0⤊ 0⤋
It is because they suddenly have the means to live out their fantasy, but lack the knowledge to handle it well. For instance, if you invested just a single year's worth of what one of these people won in a lottery, you would be set for life (Assume $50 million in winnings, paid over 20 years). But if you spent it all, what will you have left in 20 years, except debts and memories? An ex-friend of mine inherited $600,000 when his grandparents died. Within two years, it was all gone, and he has nothing left to show for it, except for pictures of plane flights to eat dinner in NY, fireworks in SF, etc. Stupid.
2006-07-08 14:04:55 · answer #4 · answered by mvsopen 3 · 0⤊ 0⤋
Some people simply don't know how to plan or spend wisely, or do not consult properly. It is not just the formerly poor who do this ... many celebrities end up this way too, because they fail to plan or find poorly educated advisors, etc.
2006-07-09 03:49:07 · answer #5 · answered by Angela B 4 · 0⤊ 0⤋
they have no brains if they loose it or spend it, nor do they deserve to keep it. If they had earned to begin with, they would pay attention and cherish what they have. Without appreciation and healthy respect for what they have, as well as the responsibility that such wealth carries, they won't ever keep it. It doesn't help when they're so selfish and so self-indulgent that they can't see farther than their own nose
2006-07-08 14:09:38 · answer #6 · answered by Mary 3 · 0⤊ 0⤋
They make dumb choices. Mark Twain was in debt at the peak of his career. President Grant had money trouble as well. Those with money buy extravagances and are careless; thus they do not long keep their wealth.
2006-07-08 14:04:37 · answer #7 · answered by an amateur 2 · 0⤊ 0⤋
The answer is: "Because they believe that happiness in life is obtained by attempting to satisfy their surface desires for instant sensual gratification; hence, they move from one titillating event to another titillating event without ever experiencing any spiritual depth in their lives. And, without spiritual depth, life is never satisfying."
Robert Gardiner
Babedudeg@aol.com
2006-07-08 14:08:10 · answer #8 · answered by soarapoar 1 · 0⤊ 0⤋
Drugs, lack of a financial consultant.
2006-07-08 14:04:41 · answer #9 · answered by Anonymous · 0⤊ 0⤋
that is becos they dont respect their wealth and they dont thank god for all the happiness they had received. hence they fell that they have suddenly lost everything.
if you maintain your wealth and make proper and timely investments bankruptcy is not possible!
2006-07-08 14:02:26 · answer #10 · answered by paladin 2 · 0⤊ 0⤋