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

South Park

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Quote from: Iroh on December 13, 2022, 05:23:29 PM

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.

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Quote from: Iroh on December 13, 2022, 05:23:29 PM

Quote from: Kakmakr on December 09, 2022, 01:04:20 AM

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. Wink

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. Roll Eyes

Tip : Do not compete with the Jones's ..... buy a good second hand car and a smaller house .... and stay healthy. Grin

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.

Iroh

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Quote from: Kakmakr on December 09, 2022, 01:04:20 AM

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. Wink

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. Roll Eyes

Tip : Do not compete with the Jones's ..... buy a good second hand car and a smaller house .... and stay healthy. Grin

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.

KingsDen

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Quote from: hugeblack on December 08, 2022, 12:17:13 PM

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

Marcellin9

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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.

Bitstar_coin

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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 Grin

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.

Tony116

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Quote from: Vaculin on December 09, 2022, 01:45:56 PM

Quote from: South Park on December 08, 2022, 03:19:41 PM

Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

BigBos

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

tabas

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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.

gantez

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Quote from: DaNNy001 on December 10, 2022, 03:40:42 AM

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.

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

DaNNy001

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

carlfebz2

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Quote from: Vaculin on December 09, 2022, 01:45:56 PM

Quote from: South Park on December 08, 2022, 03:19:41 PM

Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

usekevin

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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.

Vaculin

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Quote from: South Park on December 08, 2022, 03:19:41 PM

Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

lixer

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Quote from: adzino on December 08, 2022, 01:11:11 AM

Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

kryptqnick

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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).

inthelongrun

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There were many reasons why some huge successful investors failed later on. I have 2 reasons in my mind.

1. They failed to innovate. Your strategic success doesn't guarantee to become effective in the next months or years. This is proven over time in technology and even in trading and traditional investing. Change is constant.

2. Being complacent. There are a lot of sayings about being contented with what we have at the moment and being happy with it. But the thing is, we humans couldn't reach this stage if all of us stayed complacent. We should continue to grow.

Kakmakr

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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. Wink

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. Roll Eyes

Tip : Do not compete with the Jones's ..... buy a good second hand car and a smaller house .... and stay healthy. Grin

AicecreaME

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

Lack of solid plans, more random decisions that are made in a very short amount period of time, in short, they lack patience or they got too arrogant to the point that they think that they can do anything because they have a lot of money. The other thing that I could think of is that they lack on financial management, like a good one, that is why they carelessly spend their money on to something they think that is a good investment but it turns out that it is not.

If it is about business, I think they made the wrong choice in their product, or it doesn't fit on the place where they started the business. If it is something like cryptocurrency maybe they invested in a project that is all about sugarcoated promises to fool people.

xSkylarx

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The number one cause is they are too greedy and can't manage their money well. In every aspect, greed is really bad, which is why it would cost you a lot. Most of the investors or other people that got rich and we saw their downfall mostly because of greediness in getting more profit, which they will invest all of their assets since they expect to win but turn out not to, and also because they can't manage the money well, they keep spending without being noticed that there is no money going in to the person, so it will lead to losing all of your money.

Wexnident

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I reckon most people who can create a stable business should be rather capable enough, so the most probable reason was they didn't perform well enough. It may be not performing well enough to combat the weakness of whatever business they made, most of which reliably run well early on but without the owner building its foundation constantly, it just collapses. Might be that they got greedy and made an overambitious investment without any plan to fall back on, might have even been ruined by another business rival. In the end, it's just that they failed in something, whether it be in connections, investment, planning, etc., in general, the foundations of a business.

Not that some factors are their fault though, there are just some instances where outside factors can fuck you up really well, regardless of the countless backup plans you have.

Oceat

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Whose the subject here?

Do you mean those from the top like the known exchange then go to the bottom?
Well, in life, don't think you won't suffer from downfall because everyone does and there's always a turning point where you are today. It's the cycle of life although, this depends on the person whether she/he wanted to fight for a change or continue their life with an acceptable defeat.

Being an investor takes a risk and knowledge of the market so that your investment won't go as a donation it's just how well knowledgeable the person is to handle all of the situation.

Merit.s

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For a business to fail it means that the owner didn't understand some certain factors about his business.
1. In business, there are weakness and strength. Strength means those activities that are carried out which makes the business grow, while weaknesses are those things we fail to do which brings the business down during competition in the market.
He didn't notice the weakness of the business, if he knows he can work on the weakness of the business and turn in into strength of the business.
2. Good customers relationship : For a business to keeping progressing,there is need for you to keep good relationship with your customers, make them feel free to contribute on the business and also suggestion because they are the one patronizing you. If your business is lacking behind, they will be the one to let you know that you need to add more quality if not they will not patronise you anymore and that is the truth. All these are very important for a business to progress and when not considered, it can lead to failure in your business.
Government policy can also lead to business failure.

BitDane

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

I believe these people become complacent and lazy of updating themselves or dig more information before deciding to invest or to keep their investment. Since they had proven their strategy to be good, they failed to reconsider everything.

One good example is SBF, he said he is well versed with risk management and let us believe that is true. He admit that he become too confident and "trusting" and never take his time to look at the FTX situation which he admit that he should be. So laziness is also another factor why a rich investor become a nobody in no time.

Distinctin

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

This is very true as a lot of highly regarded investors have lost their spotlight and have doom into losses. For me, having too much greed is a big reason too, and being incapable and incompetent too will also make you lose in the end. As people get more mature, some may have lost their focus too and fail in their used to be profitable investments.

Kasabus

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Quote from: hugeblack on December 08, 2022, 12:17:13 PM

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

Yes, they could be real life reasons why such players or investors fail in the end. Aside from that, the fear and greed are usually the big reasons why an investor has not maintain his wealth and earnings because he chose to focus on himself without considering the changing environment that sometimes keeps better or worse depending on how a single individual views it.

Russlenat

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

Maybe they’re too scared to lose their money again and fail to understand the concept of compounding gains. With that, they become more static and chose not to take risks anymore not because they are already satisfied seeing their status financially but it’s more on the fears that if they create a single mistake, everything will fall unexpectedly. So if they are not improving anymore, then they will eventually lose again in the end.

Finestream

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Quote from: jackg on December 07, 2022, 05:30:01 PM

People have a hard time adjusting to new things it's a sign of aging. When you're young you can change as much as you want and have less you need to spend on too but as you get older you become more static and fixed (if you fall into the trap I guess). This is for the few % of people that don't fall under mk4's 3 other methods.

Some people just get bored and give up or try to find themselves in younger people and lose their money that way.

Not just adjustments, but maybe some people have just become unproductive in the long run regardless if they have been considered long time investors in the crypto market. I know changes are the only constant in the world, and these investors may have never taken full efforts on making them more productive and profitable, and by staying effortless and more confidence that they can still do it, that may be the start of their failing investing career. I guess aging in one way or another is also one big reason of it.

South Park

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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.

teosanru

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

I think 80% of these people lose it because of their stupidity and the rest 20% lose it because of their luck. Imagine if you are someone who just moved his savings to FTX to exchange some into some coin that you think will do good and the next moment you see FTX withdrawals getting stuck and going into bankruptcy. What can you say to someone who is in this situation? He didn't do anything wrong at all. He just wanted to move his coins to some other coins and then take them back to private keys, these type of people will fall in the luck category, rest 80% do things like buying shitcoins or NFTs which ultimately lose their values, basically making wrong investment choices.

Zaguru12

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Firstly I will blame how the wealth was first acquired. Some self assumed rich people get riches from peoples livelihood either embezzlement or corruption. This people are the politicians of these day. If they leave the seat they just lavish there money and it goes up like flames.

The second set of people that go poor after been rich are those born with silver spoon. These people have lived there lives extravagantly and when left with the wealth, it tends to crumple in their hands

Zanab247

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Here are some of the reasons people turn from grace to grass:

1) Bad attitude is one of the thing that can reduce you to nothing if you don't change or eliminate it, because we have heard how many hard working investors been scammed in the community by the scammers who want to increase in wealth not knowing that evil is ahead of them to bring them down to nobody.
2) lack of personal research can make you to reduce to nobody in the community, if you don't embrace the knowledge of research before investing in digital investment because many people has invested their money in a wrong project without carry out their personal research to know if the project is real or fake before investing.
3) Greedy can make someone that is doing well before to reduce to nobody in the future, if he or she don't eliminate the spirit of greedy from their minds because there are some people who will never sell their coins when there is a bull market than to hold till the bear market will meet them again.

Jody.Drummer

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Many factors influence why people who are initially established and stable become people who are said to fail.
Strategy, strategy is important in maintaining the stability of what we do, I'm sure they must realize how important implementing strategy is in maintaining the balance of a business or something that is done. If they fail to set a good strategy then they will soon meet with failure.
Unhealthy money circulation is also another factor why many people fail. Financial management is the main thing that must be considered, this can be said to be a determinant of future conditions in my opinion.

Genemind

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Both my parents were both businessmen and these bad habits that my parents had made our family from riches to rugs.

1. Mismanagement of funds. They spend more than what they earn.
2. Being to comfortable with current lifestyle.
2. Getting too involved with family matters/helping the wrong people who take advantage of your wealth.
3. Both of them were consumed by too much vices (Drug, Alcohol, Gambling, etc.)
4. Opening a business without planning ahead or back-up pan.
5. Getting a huge loan without any sustained cash flow.

There are actually too many to mention, this all happened when I was young and I'm happy to experience both ends. From living a rich life and starting way back to zero and crawling my way up to the top again.

Crypt0Gore

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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 many jackpot lottery winners in the world today that still end up poor due to a reason or the other, the most common reason is mismanagement of fund.

Change is very constant in people's life, this is why you need to be careful which advice you take from people and which new people you start mingling with.

In time a business can lose interest in the world that's why we need to be open to new ideas, do not be too reliable on your business especially if it's kinda old, things change pretty fast this days.

hugeblack

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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

iamsange

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

Here where I am now, those who are financially secure will mean nothing if they don't have a certain degree that they got through their studies and will not be well looked after by the people around them if they don't work in a government agency even though they can earn more. a lot of money in their own way without having to get involved with government agencies.

This is what I see in my environment now, so that here where I am many people compete to work in government agencies so that they have more value in the eyes of society or in the eyes of people who are close to their environment. And I actually don't understand why something like that can appear in society at this time.

Husires

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Habits and activities are what transform a person from a stable situation to a bad financial situation. A person’s habits may be bad, but he has a high financial income that makes him achieve an economic surplus despite his poor financial situation.

This thing appears clearly in celebrities and children of rich families, as they live an extravagant life financially, but they have an income that is sufficient for these expenditures and achieves a surplus for them.

Economic changes: Violent economic changes usually lead to many changes in the economy, and whatever your economic strategy is, you will fail to maintain it.

Psychological factors: Sometimes reaching the top is boring, and the creativity that leads to financial problems disappears.

We can tell more, everyone has a different story.

rokok lokal

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The main reason why they do not succeed is that they are fixated with their own strategy which they have been using in the past. They have to change since the financial world is continuously changing. They need to adapt and adopt new strategies to remain successful. A successful investor will always be learning, not just to be better at investing but to also enjoy the process of investing. A good thing that they can do as a start is to look at the reasons why they failed in the past and try to improve themselves from it.

ethereumhunter

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Those financially secure investors are constantly trying to chase more profits without looking at themselves or changing strategy based on their surroundings. They need to focus on choosing their investments and study more to determine which can provide more returns. Or it is because they are so greedy in their pursuit of profit that they forget there is a time to pause and enjoy the results. But whatever it is, they should continue learning because by learning that they can improve their ability to choose well.

Lida93

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

1: Strategy in business is one key factor that when well planned, articulated and put to action does make for an increased productivity in business and any strategy that is not inline with the kind of business you are dealing with will end up bringing you losses. So sometimes when people that were doing so well financially start reducing to nothing then it's not just that they failed to strategize perhaps it could be that they put forward a wrong strategy as financial plan.

2: Yes, failure to put more effort to keep maintaining their financial status could be one reason for a financial downfall of an individual. There's so much competition within the business environment and any one that slacks in effort is giving room to the upliftment of another at their own peril. It's just like the saying goes "if you snooze you lose".

adzino

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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".

Despairo

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Are we talking about a real investor that start from scratch to hero and then he loss all of his wealth, or we're talking about people who flex their wealth while they're actually broke?

If it's the first situation, I think it's a lucky investor that make money from shitcoins, but when he want to invest in risky shitcoins to make more money, they're rekt since the shitcoins crash and only worth for penny.

If it's the second situation, those aren't an investor and doesn't a rich person at all, but they're force to have luxury lifestyle in order to satisfy his emotion and get respect from many people.

gantez

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Quote from: mk4 on December 07, 2022, 03:39:26 PM

Quote from: martyns on December 07, 2022, 03:15:39 PM

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's going to totally depend on the person. But if I were to guess, the most common problems:

1. They got too greedy and probably overleveraged or put too big of an allocation that ended up being a bad trade
2. They simply didn't perform good enough
3. They were bad investors in the first place

The points you said are correct and apart from your response I have read some response who only looking at the individual, that is the person fault that couldn't grow beyond the nose and push his business far and more. I have know that some business also crash not because the individual has no good plan or his fault but that government policy can crash someone out of business. I have see this happen different times. If the government policy is hard on your line of business the rate of survival for the business can get affected. Banning some kind of goods commodities into the country is example.

War can also affect business and we can all see what is happening in Ukraine as example. Some company will crash because of war.

Disaster both natural and human, disaster like flood can cause even a community to crash, lose everything etc A business location in the flood area is not surviving.

Darker45

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There are a hundred possible reasons for this. An investor or a businessman or somebody who is financially well losing all his/her money is not just a failure of business or investment strategy. It could even be personal.

He/she entrusted his/her wealth in a centralized platform such as FTX.
His/her investment simply failed.
His/her business becomes obsolete or out of taste. He/she wasn't able to innovate along with time.
His/her business is severely affected by macroeconomic factors.
He/she is consumed by vices.
He/she failed to manage his/her finances, spending much more than his/her earnings.
His/her trusted financial manager stole and squandered the company's money.
He/she lost interest of his/her business.
He/she got into depression after a divorce or whatever.
And many more possible reasons.

harizen

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Quote from: martyns on December 07, 2022, 03:15:39 PM

what can actually be the cause of the downfall of someone who was already stable financially?

Really depend on how their respective life turned out into something.

Even with a professional approach, we have what we called a "worst-case scenario".

a) First time dealing with the worst problem they encounter on their business or investment
b) Didn't anticipate that something big is bound to happen that might put them into bankruptcy (e.g pandemic)
c) There's a "mole" around that always being jealous of the success of others that's why they will do everything to make that person fall

Lots of possible scenarios to mention....

However, these worst experiences can make the investor become more knowledgeable and smart while they are finding ways to address those issues. Surely, they will soon bounce back and will reach the status again of being financially stable as long as they will be serious about overcoming the problems they have encountered.

ultrloa

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

They failed because they are not very careful on their investment, they are to greedy to step in on new opportunities without even thinking the risk that's why they end up losing their money there. If more people will do there due diligence to seek for more better information regarding on what they want to do and seek for advice on their love ones on the decision they want to make for sure they will have second thoughts for listening the advice that can cause them huge harm for creating bad decisions in life.

franky1

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

most rich businessmen do not value themselves on actual cash in pockets amount. but on market cap/ company valuations of vapour money

this is to say imagine you start a business and you seeked investment of $100k for 5% of company
it vapours a value of $2m but only $100k of real money exists

businesses pretend they have $2m to play with or $2m of stuff they can sell to creditors if things go bad..
but if they over extend themselves and spend the $100k real money and then get into debt about the vapour value.. boom fall from grace instantly

Hamphser

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

If you do come into a point into your life when you do able to achieve your goals or into those targets then you would be usually be putting up that not similar effort before.
I could say that it is something part of our instinct on getting contented and ends up on not be able to handle your business or investment just because you are cherishing out
the fruit of your hard work but not all is really having this kind of behavior on which there are ones who cant just stop and dont let things to be going down
or they would really be going back on where they are before, this is why they are striving their best to maintain and sustain for longer runs.
If you dont like for it to happen into you then it is really just normal that you would be finding up ways continously without trying out to mishandle those things that you've
worked hard.

Fortify

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

What you tend to find is that people who work hard through their whole life and establish a fortune, will tend to learn how to hold on to it. The exceptions being company owners who do not cash out and diversify before their company crashes for some reason. Besides that you tend to find the people who start with big money and end up with nothing are 2nd or 3rd generations within a rich family who never actually had to learn how to make money but will fritter it away very fast. It's extremely easy to spend money even when you have lots of it, but understanding how to retain it and live within your means can be too much for certain people who never had to go out and grind it.

jackg

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People have a hard time adjusting to new things it's a sign of aging. When you're young you can change as much as you want and have less you need to spend on too but as you get older you become more static and fixed (if you fall into the trap I guess). This is for the few % of people that don't fall under mk4's 3 other methods.

Some people just get bored and give up or try to find themselves in younger people and lose their money that way.

Alpha Marine

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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?

A lot of reasons can make a successful person to fall to nothing. Its easier to look from the outside and say the person squandered his money or didn't invest well or was greedy.
I've seen a rich man spend all he has in the treatment of his daughter when she got sick. In fact it was all his family has.

It may be that the person didn't invest well or he did and lost his investment like the case of FTX or a nasty devorce. There are so many possibilities so you cant just pick out one or two and say here it is, here is the reason this person lost all his money. Life's not black and white. A devorce can lead to depression. Depression can lead to drugs and alcohol. Drugs can lead to bankruptcy. So there is no definite reason why people go from "grace to grass'".

Iroh

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There are numerous reasons on why a wealthy individual or investor could suddenly lose all the accumulated wealth and go bankrupt overnight.
Greed plays an important role in investors losing out on their investments. When an investment looks too good to be true, it most likely is. People fail to realize this early enough and only when it’s too late and impossible to back out, that is when the most clears from the mind.
I think greed is the no 1 and most important factor that makes investors lose out. There are numerous reasons, of course but greed, in my opinion trumps all.

livingfree

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I think this has nothing to do with Bitcoin so, it's inappropriate to be a thread that's on the Bitcoin Discussion.

Anyway, those that have come from nothing to something. They're mostly the people that will really take care of the status that they've made and as in anything that they've achieved because they've worked hard from it.

But those that go easy on their lives even if they've come from nothing and turned into a hero but without discipline, they're the ones that falls at most times.

It sums up to the idea that the biggest and most important thing in terms of money-related topics should be studied well like from having the basic knowledge on money handling and also to monitor the spending habits.

mk4

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Quote from: martyns on December 07, 2022, 03:15:39 PM

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's going to totally depend on the person. But if I were to guess, the most common problems:

1. They got too greedy and probably overleveraged or put too big of an allocation that ended up being a bad trade
2. They simply didn't perform good enough
3. They were bad investors in the first place

martyns

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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?

Topic: From grace to grass:Reasons why a Well to do investor turned a nobody. (Read 685 times)