Life is a great teacher. We can learn many things just by observing around us. It is up to us how to take the learning and apply it in our day to day life. It is an old saying that we should learn from others’ mistakes and should not get repeated those by us.. This is applicable to every sort of life as well as for managing our finances.
Realistic examples as well as true living examples are real teachers. Mere bookish knowledge doesn’t give you real flavor. Personal finance books may give you the guidelines which you should follow to be on a right track but When you see real people’s examples of those who are around you or whose’s story you come to know or any famous personality’s real stories you read or see, you can understand the Dos and Don’t of personal finance. These examples highlight the advantages and disadvantages of following the basics of financial planning and personal finance.
Sometimes we see some people went to a stage of riches to rages. How did such successful rich people especially from the entertainment industry fall from their grace and position? Is the change in their financial condition is sudden? The answer is No..
When you are riding the high horse, you wouldn’t think of what would happen if the saddle comes loose.
Same situation with their financials. When such people are at their peak of popularity or success and earning hoards of money, they never ever think of rainy days when all such fame will go off one day and they will be left with all the remaining money which they have earned till date, if anything is left with them.
So in between, if they missed out on planning their finances for these rainy days when they were earning then such a situation occurs with most of such entertainers. .
The sudden heavy inflow of money needs special attention. Where inflow of money is not regular or for a short period of time then we have to be very altered on managing this money well for the rest of our life. And here most of the famous personalities fell. Spending money is very easy but earning those and managing it for a comfortable future needs discipline and motivation. Always be prepared for the worst and pray for the best.
Why did such things happen with them?
# Are they not aware?
# Or do they not consider it important?
# Or they fail to execute their plans?
# Or is it that they don’t live within their means?
A lot many questions can come to our mind.. If such things happen to these famous personalities who were at heaps of wealth then if we middle-class people do not manage our money well then we may also find to follow the same lifestyle which we are enjoying now after retirement or after suddenly income stops.
Think over it and Act now.