This is a story that shows why some people are NEVER going to be wealthy. Quite simply, they just do not have the financial intelligence to manage money or keep it.
The West Australian newspaper (23 Jan, 2007 edition – page3) tells of one such case – a man called Stephen Lloyd.
In 1994, then aged 29, Mr Lloyd was a passenger in a vehicle that hit a tree and rolled. The unfortunate result of this was that Mr Lloyd became a quadriplegic. As compensation for his injuries he received a lump sum payment of $1.8 million AUD.
By January 2006 he had spent all of the money. He then went to his local Social Security office and filled in a “Claim for Payments for People with Disabilities, Illnesses or Injuries” form. On that form he stated that he only had $6 in a bank account and some shares worth around $3,500.
So, what did he spend all that money on? In his own words he “spent large amounts on prostitutes, friends, booze and gambling.”
At one point in his spending spree a financial advisor told him that he would “soon be poor.” However, that did not deter Mr Lloyd. After spending another $200,000 the advisor quit.
Mr Lloyd said: “everyone wants to know you until the money runs out.” Apparently, that also included an accountant who, allegedly, according to Mr Lloyd, “was going to double my money through gambling.” Some accountant, huh?
The Department of Social Security told Mr Lloyd to go away so Mr Lloyd took the Department to Court.
Before passing judgement in FAVOR of Mr Lloyd against the Australian Federal Government, the Judge agreed that Mr Lloyd’s actions were “reckless.” He also stated that Mr Lloyd, before his tragic accident, had displayed similar traits and that he had “no experience of handling big amounts of money.”
Now… what does this story tell you? Is it any wonder that so many people who are awarded or inherit or win large amounts of money are soon broke all over again? They simply have no idea how to manage it.
Time for a moment of responsibility – if YOU are ever presented with a large amount of money, lock 95% away for at LEAST three months until you have educated yourself in how to manage it. Until that time, the other 5% should allow you to pay off some bills and have a good time. How you think will determine whether you will be wealthy – or NOT!