Submitted 1 day ago by Patnou@lemmy.world to [deleted]
For a lot of people, money isn’t a number but an on/off switch. Self control in choosing to not buy something isn’t developed, so people who come into money start spending extravagantly since they don’t have the economic limitations keeping their spending in check.
There is also social pressure to spend, since that person is likely surrounded by others with the same mindset.
If you don’t know how to handle money, getting a couple of million isn’t going to help. You will fuck it up.
Expensive lifestyle until it’s suddenly all gone.
offer money for a percentage of said store why not perpetualy money
wat
78% of NFL players are in financial trouble couple of years after retirement. I imagine there’s something similar going on.
en.wikipedia.org/…/Personal_finances_of_professio…
According to a 2009 Sports Illustrated article, 35% of National Football League (NFL) players are either bankrupt or are under financial stress within two years of retirement and an estimated 60% of National Basketball Association (NBA) players, 78% of NFL players,[2] and a large percentage of Major League Baseball (MLB) players (4x that of the average U.S. citizen)[3] go bankrupt within five years after leaving their sport.[4] Originally the statement “60% of NBA players go bankrupt within five years after leaving their sport” was released by a representative of the NBA Players’ Association in 2008.[5] A Fortune magazine article states, however, that a working paper from the National Bureau of Economic Research found that the percentage of NFL players who go bankrupt after two years is a much smaller 1.9%, climbing to 15.7% after 12 years.[6]
Not everyone is smart. Not everyone has the same capabilities as everyone else. Not everyone’s situation is the same. Could be a bunch of reasons aye mate.
One of the big 4 banks here asked our group a question in a job interview once: what would you do with $1 million? Most answers were “id give half to charity and half to my family” or “id give it all to charity”. The only people that were hired (a small few) were the ones that talked about how they would invest it to setup a passive income.
Maybe that helps paint the answer, i dunno, but that really stood out to me when I was younger.
Celebrities tend to have very unpredictable cash flows, but most things the wealthy spend money on (including local investments, etc.) come with loans that need to be paid regularly.
CompactFlax@discuss.tchncs.de 1 day ago
Perhaps we need to work on writing one sentence clause, putting the phone down, and then finishing it once the brain recharges? Every post OP has a stroke about half way through.
In answer to question: because people do not do well with sudden increase in net worth and quickly adjust to a higher lifestyle than they can afford. Why don’t they invest in a local store? Because the rate of local small business failure is abysmally high. That’s why banks exist - at the most simple, you lend them money, and they lend it out, and pay you a bit of the profits they make. Hopefully they distribute the risk appropriately.
Patnou@lemmy.world 1 day ago
What is wrong with my writing?
GreenBeard@lemmy.ca 1 day ago
It’s broken English with poor grammar. “Why not perpetually money” doesn’t even constitute a complete thought, let alone a complete sentence. Most ESL people I know with more than a few months of practice can express themselves in English better than that.