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Why do Millionaires Go Bankrupt


There are lots of reasons of becoming millionaires as a bankrupt. But one of main reason of bankruptcy after becoming millionaires is lack of knowledge of accounting. It is old saying, human being can not be perfect in everything. Only God is perfect in everything. So, all those who did not learn accounting has biggest chance of becoming bankrupt soon.

We all know, accounting is the language of business. If anybody become millionaires by any chance or hard work and enters in business without perfect knowledge of accounting, it is sure, he will be bankrupt, if he or she will not take the help of accounting professionals.

1. All Millionaires Who Became Millionaires through Gambling and Contest 

Gambling is bad habit and addiction. After winning lottery ticket, they are still in the addiction of bad habit. Same money, they will again reinvest in same gambling and become zero from hero.

a) This Bad habit does not able them to create new habit of learning accounting

b) This Bad habit does not able them to spend time to know the great benefits of Accounting.

c) Due to this bad habit, they do not invest their money in Accounting Course where they can get the treasure of all time millionaire.

2. All Millionaires Who Became Millionaires through Parent or Relative Property

All such millionaires did not do any hard work or smart work. If they do not know accounting, it is sure, they will invest it in anything which will withdraw the money from their pocket. For example, they will sell same property and make their personal luxury home whose maintenance will be very costly. Soon, they will see their bank balance zero.

As per accounting rule, we should invest our money only assets which will grow our earning and with same earning, we will buy more and more assets upto the time that we need not do any work. All such assets will start to give us passive money and same passive money can be used for personal use.

3. All Millionaires Who Became Millionaires through Profession

Like singer, dancer, doctor, advocate and other professionals and acting professionals. If they will not learn the skill of accounting, it is the chance, they will also become bankrupt. If they will not learn the accounting, they will capture in the bad habit of not learning accounting. Same bad habit will create new bad habit of taking bad investment decision. For example, one actor earning Rs. 25 Crore from his superhit film. On this basis, he has taken loan of 10 Crores. All are invested without proper study of financial statement and faced big loss.

Conclusion : Learning of accounting is must whether you know other so many things. Learning of accounting should include in your learning of good habits. 

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Accounting Education: Why do Millionaires Go Bankrupt
Why do Millionaires Go Bankrupt
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Accounting Education
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