Can someone from a rich family end up poor in future?

[Bookwormlux]

Once a family has attained some level of riches, it is the expectations of every one in the society to think every member of such family would also become very rich in the future.
This then brings about this debate of whether such expectations are really true or not, it seems some scenarios can cause children from very wealthy families to end up as poor people in the future.

It is sure going to be nice if we all share ideas here of what we think concerning this. Adding up personal experience is going to make it more interesting if you have any.

I personally believe that some thing of this nature can be possible.
Certain factors that can lead to this situation include, but not limited to :
1. Lack of financial education: some people get rich and then believe that their own children do not need to stress themselves about making money or managing a business. This then leads to a situation where these children grow up without any knowing of business management and then find it difficult to manage their parents business, which may lead to business collapse.

2. Too much spending on liabilities: some rich people spend so much on liabilities, and acquire less assets. This makes them to end up poor.

What do you think?

 

[eldavis]

There is every possiblity that a person who comes form a rich family can become poor. When there is misuse and poor management of resources, can lead to bankruptcy. I have seen cases where by parents pass on the family business that has been doing well for years to their children, and the children end up selling it cause they no longer have the needed capital to make the business function.

 

[CALVINDOL]

Well,it all depends o,anyone from rich family can be poor in future.
Anyone who's from a rich family or born rich can become poor easily if he or she is not calculative.Most reach people became poor because of lottery,so there's possible means that anyone from a rich family can turn a poor guy overnight.

 

[Bookwormlux]

Well,it all depends o,anyone from rich family can be poor in future.
Anyone who's from a rich family or born rich can become poor easily if he or she is not calculative.Most reach people became poor because of lottery,so there's possible means that anyone from a rich family can turn a poor guy overnight.

Thank you for this beautiful addition. I am very much interested in the lottery aspect of your post. This is the major reason why a lot of people end up in a miserable state despite being rich in the past. That is why it is very important for parents to let their children know the dangers that lotteries, bettings, gambling and similar vices present. I am of the opinion that it is due to deficient information about this that has ruined so many lives and is still ruining more . So many people already have this mentality of making sure they get rich quick and gambling and betting companies make these things look achievable within the shortest time possible. This is why a lot of people sell their parents assets to gamble with the hope that they would recover everything.
The major problem here is the addictive tendencies of these things that make it look very achievable. So people like this would continue to engage in them to make sure they recover all their losses in the past , when it is already obvious that there is no possibility of them being able to ever recover everything at all. This further leads to greater level of frustration.

 

[Kendy]

Yes, some people from a rich background can still end up being poor and I have witnessed some instances. Lack of education can make an individual from a wealthy family become poor. I am talking about general education in this context because ignorance can make someone spend recklessly and not plan effectively. There are some individuals who are over ambitious and they end up taking risks that would make them loose all their funds. Lack of contentment can make someone from a rich background suddenly become poor and ineffective planning. Some rich individuals are not effective planners, such that they spend money on trivial things because they feel their family would always back them up with funding. There is a man who is from a rich family no doubt because his father was a branch manager in a famous bank and he even refused to go to the university yet he did not have any productive engagement, all his unscrupulous spending was with his family's wealth but unfortunately, the father had some health challenges and retired, then it dawned on him that he had wasted the opportunity he once had. Right now, he is seen as a wet blanket or a prodigal son.

 

[Chibson]

Yes, there have been a lot of people that were millionaires and later became very poor. sometimes making money may not really be the problem but managing money. There are a lot of people that we are fortunate in your lives to have access to a lot of money but lack of proper management of that money and investing in the right things made them to lose everything and become very poor. I think there was a Brazilian billionaire who later become very wretched and he is a typical example of the fact that you are rich today does not mean you will be rich forever but how you manage your money matters a lot. There are many people who have access to wealth today and they're not investing it in the right things instead they are spending the money doing things that doesn't really matter and will not help them to increase the wealth. Someone from a very rich family can definitely be very broke tomorrow because of lack of financial education. Someone who does not have proper financial education can never maintain wealth even if you give him or her $1000000000 today. making the money actually may not be the problem but managing is too well or increasing it.

 

[sincerem]

Any rich man that sounds money lavishly end up suffering financially in the future. I wouldn't be a one day millionaire who spend money without thinking about the future. Such kind of mistake is common in our society today, lots if rich men and women I saw in the past turned average and poor people today. Reason is because, they failed to plan ahead of time, they spend money lavishly like their is no tomorrow. Such kind of people are always vulnerable of suffering financial degradation. Any one who wants to experience long term financial freedom wouldn't let him or herself used or deceived my liabilities which doesn't last a long time. If the person doesn't know what to use money for, it will be better to use it and invest in stocks, crypto, or simply saving in the bank fixed deposit and locking it there long time until more useful ideas on how to utilize the funds better comes up. Those who squander money are mostly stark illiterates who lack basic understanding of life, just inherited riches from parents without knowing how to maintain those wealth. Just moving from one place to another spending money carelessly without doing something tangible to replace the spent money.

 

[Good-Guy]

It is quite possible for a rich person to become poor. I think that this usually happens when a person gets disowned by their rich family. This is something really common nowadays. Usually parents would never tolerate a person who never earns money, even if he belongs to a rich family. I have seen many people who belong to rich families, but still they work blue collar jobs in the city. Such children never receive any kind of financial support from their families and they may leave their parents house after some time. This is a growing problems nowadays and this is usually because of children being disowned or shunned by their elders.

This is really bad for the society, but it is a harsh reality. Another reason why a person belonging to a rich family might get poor is because they become extravagant and start spending a lots of money after receiving the inheritance from their parents or elders. There have been many cases of such thing happening and I am myself a witness of such cases. I believe that when it comes to matters related to money, people should never depend on other humans. People should trust Allah Almighty and earn their own money and never depend on parents. people should only depend on Allah Almighty.

 

[TOZZIBLINKZ]

No one is guaranteed to be rich forever because time and unforeseen occurrence before every man . I have seen someone who initially was very wealthy and successful but as a result of his inability to manage his wealth he became poor and Reched . it is possible for someone who was initially rich to become poor if he is unable to manage his wealth as a result of excessive spending on things that are not really bad and or building . Children from rich homes and families things to spend money on things that are not relevant simply because the money is in abundance .

An individual whether rich or poor is expected to plan ahead of time , he must put his wealth to good investment and he must not see his worthiness as a means to influence and pressurise others . Sometimes some people lose their wealth as a result of mocking other who are not wealthy , and the people being mocked could devise ways to rob the wealthy person off his or her money and assets . In addition , money is a very essential to an asset and must be spent sensibly and rightfully , because it really fun spending and the use of money to mock and badly influence others could have devastating effect on the owner of the wealth .

 

[Bookwormlux]

@Kendy thanks for that beautiful instance shared. This then boils down to the fact that having money is not an excuse to not getting educated at all. One things that u have noticed about most rich people whose family did not end up poor is that they made sure to empower their own kids with the right knowledge that would enable them to freely carry on with the business activity in to the next generation.

It is never a wise decision for any rich man to let his children stay uneducated because of the money he or she think they have.

The fact still remains that the level of education you have is so important that it goes a long way in giving you a very good orientation of life that you won't ever get anywhere else. In fact, staying within a school community alone is enough for you to learn some things that won't be taught by your parents. This is why people should not just focus on money without getting some education.

We get to see so many people who are rich, no doubts, but they exhibit so much level of lack of wisdom that no one would even want to be with them at all.

 

[Bagondwe7]

That can happen. In fact, I have seen that happen. It's all about money management skills. One may be given money to start a business with, but may lack the skill for the business or may have habits that may not be conducive to business. Usually, rich family members have a way of making money and may be experienced in a certain business, and after they are gone, an inexperienced member may be in trouble.

 

[Setho]

There is usually a very popular saying that in the world right now the rich are the people who are continuously getting richer and the poor are continuously getting poorer . And that is going to explain why 80% of the world population is belonging to only 20% of individuals and that is very unfair . Even in real-world cases we have been able to see a lot of people who had a lot of money but at the end of the day they did not manage it well and end up losing it all .

Somebody can be able to squander all their money if they do not have the right mentorship and the right experience is about money. There is a great tendency that somebody is going to squander money if it does not work for it and that is why it is advisable to always make your children know about money and how to treat it .

Addiction to drugs or other harmful substances are one of the reasons where people from which background can end up becoming poor because of how expensive it is to get these drugs especially if you are somebody that have developed addiction .