Why Billionaires Go Broke

Story By:  Ernest B. Asante

I came across an article on the internet explaining why billionaires can become broke. I was like “what!?” “How possible?” Till I delve deeper into the story.

When we hear the word “billionaire”, that tells about an individual having sums of money. And I found it difficult to accept that such person can lose money to be broke.

Surely, not only billionaires but each and every successful person can lose money/wealth if the following measures are not taken proper care of.

1.    A quadrant source of income.

Most self-made billionaires have multiple outlets of income. They don’t have single source of income. I have studied a couple of them, for instance in Ghana, Papa Kwesi Nduom has a lot of businesses. He’s almost in all the quadrants. Enjoying multiple streams of income.

Having multiple income streams make a lot of sense. When one stream is negatively affected by systematic economic downturns, of which you have no control, the other streams can come to the rescue and help you survive the downturn, without seeing your lifestyle dramatically affected. That is, not putting all your available eggs in one basket.

2. Bad record of spending.

Billionaires waste money because they do not track their spending. For a start, it may not be a worry but as time goes on, it will pile up and by the time you realized chunk of income is lost.

This is usually how… most billionaires do not compare prices of products they purchase. Instead of them taking key interest in checking the difference between prices of products they patronize, they rather ignore overcharges since they can easily pay for it.

Whether you’re a PK seller or Osei Kwame Despite, you should make it a point to track your spending. Every pesewa or penny you spend counts. Try to review whatever you have spent to find out how best you can negotiate to cut down cost.

Set a budget and follow to know where every pesewa goes.

3 Non-advisory investment

There are expects who are good enough to help billionaires dispatch their wealth to amass more. Some billionaires do not see the relevance in consulting investment professionals to help invest their money. They rather enter into ventures which at the end regret or lose hugely. It’s better to educate yourself about your money. Get an educated investment “gurus” to help you invest your money because they study the market and mostly know the “dos and don’ts” when it comes to investments.

To conclude, if you are rich enough, invest in other sectors to gain multiple streams of income to complement each other, track your spending to avoid superfluous and consult investment professionals to educate you on your investments so that you don’t go broke as a millionaire.