Things That Make You Go Broke

People these days are too busy or just too distracted with unnecessary things in life that they forget that everything they have could be gone in an instant without prior warnings at all. Many people also experience losing it all and because of this prepare as much as they can. Life however is so unpredictable that no one can be truly prepared to lose it all.

There are many reasons people want to be employees rather than become business owners. But the main reason people become employees is the perceived job stability and income it brings. This is unlike most business owner whose profits from their business can fluctuate from time to time with no warnings.

People can however lose their job in an instant. The company could close suddenly like in instances where profitable companies close unprofitable divisions or branches to boost their annual profit report. Companies could easily fire an employee even if they had tenure. Employees can be fired for insubordination and conflicts of interest at a moment’s notice.

Since people tie up their livelihood to their jobs all their personal loans are also dependent on it. Many people start their house, new car, getting married and have a family once they have perceived stability in their jobs. Even when their job is gone however their mortgage, car, and family bills do not stop. This is the reason why many people go broke fast when they lose their job.

This situation has become so bad the even having a job is not enough to give a feeling of stability to an employee. In America for example it was found out that most Americans do not even have $2,000 worth of funds to support themselves should an unforeseen emergency arise. It was also found out that the average American would go broke in weeks not months when they lose their jobs.

Everyone gets sick and this becomes more frequent as they get old. Others have the misfortune of getting long lasting, paralysing and costly sicknesses. For example I developed a mental sickness that caused me to stop working at a not so young age and left me unable to work for years. Even if I was cured my chances of landing a job at my age is very slim but I am still too young to collect old age pension.

As you can see something as simple as being sick and unable to work at a certain age range can be devastating financially. What more for people who have been incapacitated by sickness even at a young age. These people unable to work would also strain the finances of the people who are taking care of them that they live all their life in poverty.

Medical Bills can become expensive and I have heard of people selling their houses just to pay their medical bills. In fact there are many people actively soliciting for help online just because they cannot pay their medical bills by themselves. If you have medical expenses and need help you can try gofundme and maybe you could get help.

Think of this scenario. You are old and dependent on your pension only but at least you have your house fully paid for after decades of working. Then a typhoon, earthquake, fire, flood and other natural disasters come and not only destroys your house but your possessions as well. You lose everything you own. The world is filled with natural disasters and this scenario is not uncommon to many people around the world.

You might just be doing your normal routine walking when you lose your balance and slip. As a result you have a hip injury whose medical cost is expensive. Add to this you are also unable to work and may not be able to work normally because the damage to your hip is permanent. These are simple and common accidents but can instantly leave you broke permanently.

Legal Bills can be as expensive as life threatening medical bills. A simple argument with another person especially if they are well financed can easily drain you of your savings. Just like life long sickness court cases can drag for years and this consumes a lot of resources including your money and time and not to mention your personal wellness which could cause additional money to treat.

Just like accidents and sicknesses crimes against you can happen anytime. The world is not a safe place with plenty of evil people committing crimes to steal your property and even to hurt you. There are many crimes that are so serious that victims are left impoverished. Some of these are:

Robbery: You can be walking in broad daylight when a car stops and armed men force you inside their car. They then take you to an ATM machine to force you to withdraw all of your savings. Most people carry their ATM cards with them now whenever they leave and criminals know this. This is an easy way for criminals to steal your entire savings in just a short time.

Kidnapping: Rich people are the most common victims of these crimes but anyone including poor people can be victims as well. Normally criminals will set unreasonable ransom demands to gauge the maximum amount of money they can extort from their victims. At worst the criminals even kill the kidnapped victim after taking almost all of the money from the victim’s relatives.

Fraud: Many criminals entice unsuspecting people with many Get Rich Quick Schemes. The most naive victims usually end up with them losing all their money in these schemes. There are many of these schemes which seems legal and escape prosecution by the law. There are too many schemes like charities, personal wellness products, courses and so on that are fake but operate openly within the boundaries of the law.

Internet Fraud: Many of the personal and financial details of people are online now and online transactions are growing exponentially. Tech savvy criminals can gather a person’s information online and would try to use it to rob people of their entire online savings. These criminals are so well organised that they are entire businesses unto themselves.

Conclusion

As can be seen there are many ways one’s entire savings can completely be wiped out leaving them in poverty. Insurance may be able to assist in some cases but for crimes it takes vigilance and crime prevention steps to at least stem the tide of poverty. But what is important most of all is to always prepare by saving as much money as you can to prepare for any unforeseen life and financial disasters.