Robert Kiyosaki: Six Reasons Why Money Doesn’t Make You Rich
If you suddenly came into a ton of money, would all your problems be solved? Of course, the answer is, no. In fact, money brings new problems. People that get rich overnight typically lose it all. Money goes out as fast…or faster…than it comes in for those who don’t know how to handle it. Anyone who plans to build and maintain wealth needs to become financially educated. Learn to avoid the fate of those without financial intelligence who lose their fortunes. Robert Kiyosaki, author of “Rich Dad, Poor Dad”, lists six reasons why rich people go broke. Here they are:
Why many rich people go broke—and how you can avoid their fate
If you made $108 million dollars, would all your money problems be solved?
If you answered yes to this question, there’s a chance you don’t understand that having more money doesn’t solve your money problems. It just brings new ones.
Take for instance the story of Antoine Walker. In 1996, he was drafted by the Boston Celtics and had a storied career. As “USA Today” reports, “Over the next decade, he became an NBA Live cover athlete, a three-time All-Star, an NBA champion, and the recipient of over $108 million in contract money.”
And then, it was all gone.
In the space of a few years, Walker lived lavishly, buying dozens of cars, never wearing the same suit twice, propping up his family and friends financially, and eventually backing a real estate investment company with his personal guarantee. And that was what did him in.
Eventually, Walker had to file for Chapter 7 bankruptcy. He went from over $100 million dollars to nothing in the space of a few years.
Today, Walker has reinvented himself, teaching other young athletes about the pitfalls of sudden wealth. I wish him all the best, as it’s noble and important work.
At Rich Dad, we’ve talked about this topic as well, and I believe there are six reasons why “rich” people go broke. I’m sure Walker would read them and resonate with most of them.
1. People who grow up without money have no idea how to handle it
Too much money is often as big a problem as not enough money. If a person is not trained to handle large sums of money or does not have a proper financial education or advisors, they will either stash the money away in the bank or just lose it. As my rich dad said, “Money does not make you rich. Financial education does.” Read entire article…