19 Former Millionaires Reveal Shocking Mistakes That Cost Them Everything
Bought multiple sports cars and even a yacht
Took my sister and I travelling all around the world.
My life growing up was literally a model’s instagram page. But then one day a flood came, the restaurant went completely underwater and destroyed close to a million dollars worth of wine and not to mention the write off on the kitchen. They were ruined. They had to sell everything just to cover the cost of the restaurant.
They now live in a small apartment and are both still working over 70 to pay off all the loans they still owe.
Word of warning, if you come into possession of a large sum of money, don’t be stupid.
I work in finance and my team and I work with all very affluent clients. I’ve seen so many millionaires lose it all not from investing in the markets, but from: Taxes, Lifestyle and poor business decisions.
Once had a client who was making 50k a month, but was spending 60k a month and perpetually dipping into his investments. There were months where payments bounced because he was living a lifestyle and always wanted more.
My favorite investment advice: Same car, same house, same spouse
I don’t know if this fits, but my ex had a friend who inherited a million dollars in cash and near-cash assets when his only parent died and he was 20 years old. Now, you aren’t just going to retire at 20 on a million bucks but it’s a great way to pay for college, maybe buy a car and a down payment on a house, and save/invest the rest. Basically, it’s a really good way to start your adult life and nearly ensure you’ll be quite wealthy in your later years.
Did he do any of that? Nope. Bought himself a ridiculous luxury car, bought cars for his friends, bought wardrobes of designer clothes, threw huge parties repeatedly, etc. Ended up broke in two or three years and went back to waiting tables to make rent. Sad to see.
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