When talking about bankruptcy most of us assume and relate it to celebrities. It’s more interesting to hear about bankruptcy Hamilton. Well, what do you learn from all these stories that are always buzzing in the media about big personalities and celebrities filing for bankruptcy. Bankruptcy isn’t something that only affects the filthy rich, of course, many of us tend to be shocked at how rich celebrities making millions of dollars always end up filing for bankruptcy.
Well, the following lessons are worth considering if you want to avoid facing the same fate as the many celebrities who have been forced to declare that they are bankrupt.
1. Saving Money is very important
The mistake that many people make when they start cashing in a lot of money is that they overlook the importance of saving something for the rainy days. The more money you earn, the more you are required to make smart financial decisions. Of course more income will tempt you into more spending, however, you seriously need to put aside some amount for future days. Most people when they start earning more money, they start spending the cash on cars, jewelry, and fancy living. Most people who have gone through bankruptcy regret not saving some cash for the rainy days.
2. Remembering what you will lose
When it comes to having a lot of money, then it’s a two-faced devil. Smiling on one side and crying on the other side. When you start making a lot of money don’t get into the habit of picking petty fights with everyone. People tend to find it more profitable to file lawsuits against high earning individuals because they are certain they will get something. These petty fights will keep you in and out of court constantly and soon deplete your account.
3. Discussing your incomes in public.
Every public discussion you have about your earnings and money puts your money at a risk. You should not be open about your earning as this will attract the wrong type of crowd around you. The best way to protect your money is by keeping quiet about it. Nobody will be interested in your money if they don’t know anything about it, hence nobody will be coming for your money in the near future.
4. Putting all your money at risk
How? Well, this is far from the normal investment opportunities that you can consider. Of course, the best way to get prepared for rainy days is having a reliable money generating investment plan. But then you are not supposed to put all the money you have into an investment plan, what if something goes wrong. You will totally have a fall from grace to grass. Considering startups are good, however, you should be smart about it.
5. The investments you plan to make
In point #4, we mentioned about investment. When you start earning a lot of money you will be curious about the glamorous investment opportunities. Many will be tempted with items like movies, TV, alcohol, and clothing since they sound and look glamorous, however, such things offer greater financial risk. Most of the times they don’t turn out to be smart investments, look for industries like technology and finance that offer guaranteed pay. When considering an investment its best to carry out the necessary research and get all the necessary information to make a smart investment.