I have witnessed countless people, including previously wealthy people, become broke.
What are the biggest causes of financial ruin and what is likely to change in the future?
Below is a list:
Excessive and consistent consumption of drugs, alcohol, gambling and other vices can lead to financial ruin.
There is a simple reason for this. These habits can get worse with time and indirectly affect you in countless ways.
It can influence how much sleep you get, how productive you are at work and your judgements.
2. Big mortgages
Unexpected bills from medical expenses, and failing to keep up with a big mortgage, contribute towards bankruptcy according to a Business Insider survey.
3. Picking the wrong life partner
There is an expression that “behind every man is an even greater woman”, and whilst society has changed, one thing has remained the same.
It is hard to focus on business and personal finances, if you haven’t got a stable situation at home.
4. Rising life expectancy
We all know that life expectancy is rising. As the graph shows below, it has skyrocketed in the last 100 years.
What few know is that the average age expectancy could soon rise to over 100, due to advanced medical technology.
That means we could soon expect to have 35-50 year retirements. The amount you will need to invest, or the length of your contribution, might need to change.
How much do people really need to save and invest to live a comfortable life in retirement?