December 10, 2017

The Curse of the Young Millionaire

Personalizing successes sets people up for disastrous failure. They begin to treat the success as a personal reflection rather than the result of capitalizing on a good opportunity, being at the right place at the right time or even being just plain lucky.
The high from “being right” the market and making all that money is unbelievable. It cannot be duplicated with drugs. You are totally invincible. You are impervious to all pain. There’s nothing bad in the world.

Making tons of money at an early age is probably a combination of the best and worst thing that can happen to you. It gives you tons of possibilities but also opens you up to potential problem situations if you’re not equipped to handle it.

Research shows about 70% of people who receive a financial windfall will lose it within a few years.
It’s estimated that nearly 80% of NFL players are broke or bankrupt after being out of the league for two years. Sixty percent of NBA players are broke after being out for 5 years.

One of the biggest problems with becoming wealthy, especially when it happens really fast, is that people become overconfident and assume wealth equals better decision-making ability. If anything, more money often causes people to make worse decisions. Success early on in life can also give you a false sense of intelligence or skill.


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