How do people get broke after a major financial breakthrough?

[Etini Willie]

As it is now, there is a certain amount of money that if I have, I would never get broke again in my life. I don't understand how someone would see a block sum of one million naira ($2200) and still get broke months after. If I see that kind of money, I would be sure to replenish and multiply it till it becomes oceanic wealth. I have a friend who won a sports bet to the tune of 2 million naira ($4500) and in 4 months

 

[niche]

Some of the reasons why people with more money become broke is

• they may choose the wrong investment option, they may invest in fraud schemes and lose their principal also. Some companies shut down without notice, taking investors with them
• they may splurge on luxury items and services, which do not give any returns
• people may file cases, to extort money
• illness or accidents can also cause great financial losses.

 

[Paul Abel]

I think of two major things that can cause that.

✓ firstly lack of proper usage and planning
✓ And secondly improper or poor Investing.

Dealing with the first point, some people lack the ability of manage funds properly and use it in such a way that it will cover expenses for a long period of time and that makes them go broke early even after when they get an amount that looks like something they can never use up in a whole lifetime.

And secondly if one is not able to invest in the right thing and platforms, he might end up getting scammed, incurring losses and etc making him lose the funds in an unexpected interval of time.

 

[Augusta]

The issue I always see when it comes to an act like this is that of life being unpredictable. Sometimes you can hit some good money but with a twinkle of an eye it is finished.

Sometimes it's not all about spending unwisely but because of situations that were money demanding that crops up from nowhere like you have stated up there somebody can fall sick and the sickness may take half of the money or more than half of it you can have a deadly accident that will take so much money from you or other life unpredictable events that you never imagine ever happened.