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There's a Ask HN thread, maybe a few, of people who hit it rich and later lost it. The common theme is it's easier to make lots of money than it is to keep it,
by muzani 5y ago
There's a Ask HN thread, maybe a few, of people who hit it rich and later lost it. The common theme is it's easier to make lots of money than it is to keep it, which is a little unintuitive.
- gitfan86 5y agoThe scenarios where that can happen: 1. Bad budgeting or lack of diversification. "95% of my money was in Enron" 2. Confirmation Bias. "I build a successful company once, I can do it again, but this time with my own money" 3. Hedonic Treadmill. "Flying commercial is so annoying, I'm going to fly private, and figure out how to pay for it later"
- deleted 5y ago[deleted]
- benjaminwootton 5y agoDo you have a link to this one please? Sounds interesting!
- muzani 5y agohttps://news.ycombinator.com/item?id=20521902 https://news.ycombinator.com/item?id=20521902 The good stories are around the middle.
- ebanana 5y agothanks for sharing, storing thst up in the noggin
- davidajackson 5y agoIs it really unintuitive? Most Americans only save about 7% of their income IIRC, wouldn't it make sense that they would mismanage most windfalls by default? In recessions, this number jumps up dramatically, proving that it's mismanagement that contributes.
- muzani 5y agoI don't believe anyone gets a windfall by saving 7% of every paycheck either. Those who ran a startup make it a habit of burning through millions a month too. What's really unintuitive for me was seeing that CFAs are terrible at personal money management.