What are the advantages and disadvantages of suddenly aquiring wealth?
Answer:
advantage - you have money!
disadvantage.it's most likely taxable!
another disadvantage is that people change when they get money. not everyone can keep a level head and use it wisely (investments, pay off debt, etc.) they go crazy buying things they think they need, lots of electronics and toys and what not.
i saw a documentary about how a couple won the lottery and it destroyed their relationship. they ended up breaking up and the guy became a priest and the woman rescued animals
There is an obvious advantage of suddenly being fantastically wealthy. However, there are many drawbacks and challenges to becoming and staying in this "blessed" position. Winners of lottery jackpots do not have a tendency to maintain their fortunes. This tendency fits in with the idea of the rich get richer, and the poor stay poor. It is hard to hold a concept of both the value of a dollar and the value of one million dollars. One illustration I use for myself to remind me of the difference:
One dollar can buy ten packs of ramen noodles. Each package of noodles and soup technically has two servings, therefore, you can provide a meal for twenty people using only one dollar. With one million dollars, I can buy a very nice motoryacht. I can invite those twenty people with me on my boat, but it won't be very much fun because we won't have anything to eat, to drink, and we can't even go anywhere because I certainly don't have the money leftover to fill up a gas or diesel tank of a few hundred gallons.
Many individuals in this country have become relatively well-off by perservering with good financial habits for many years. Like one learns to walk, one learns to manage money in stages. To be catapulted from paycheck-to-paycheck living into financial freedom is scary and disorienting experience for many individuals.
This is a challenging and interesting subject for an essay. I have two suggestions for information both on individuals who become wealthy from continued habits, and those who become wealthy with an inheritance or lottery winnings. For the first group, look for a book called The Millionaire Next Door by Thomas J Stanley and William D Danko. For the second set, on moneycentral.msn.com, there is an article called "You're suddenly rich? Bummer." by MP Dunleavey. Best of luck with your topic.
No disadvantages. if one knows what to do
Advantage; you have money to do things with that you didn't have before. Dis-advantage;Not having the experience to handle this wealth to your advantage.
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