EUROPEAN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH
AND MANAGEMENT STUDIES
ISSN: 2750-8587
VOLUME04 ISSUE12
143
WHY RICH FAMILIES’ GENERATIONS BECOME POOR?
Urazboyev Feruzbek
Target International school, Uzbekistan
AB O U T ART I CL E
Key words:
Budgeting, investing, and
maintaining fiscal responsibility.
Received:
03.12.2024
Accepted
: 08.12.2024
Published
: 13.12.2024
Abstract:
This article explores hidden reasons
behind bankruptcy of prominent individuals,
focusing on both billionaires and millionaires. It
examines
how
mismanagement,
reckless
spending, and poor financial oversight can lead to
the loss of significant fortunes, despite having
substantial income. The stories of figures such as
Mike Tyson, Sean Quinn, Johnny Depp, and
Veronica Lake offer insights, emphasizing the
importance of financial discipline and strategic
planning. By analyzing the financial downfalls of
these individuals, the article highlights the
broader lesson: financial success is not solely
about earning wealth but also about effectively
managing and preserving it. Through this
investigation, the article emphasizes the need for
a deep understanding of financial concepts, such
as budgeting, investing, and maintaining fiscal
responsibility, to ensure long-term financial
stability.
INTRODUCTION
It is true that making a way for middle-class comfort and beyond from poverty is no longer a delusion
but real progress. By understanding concepts such as inflation, compound interest or diversifying
investments, individuals manage to significantly improve their financial stance. Take Madam C.J.
Walker, for example, who grew up in a poverty and worked as a domestic servant from a very young
age. With the right support and mentorship, she became first female self-made millionaire in America.
Additionally, in 1901 Andrew Carnegie, who underwent almost similar hardships, became the
VOLUME04 ISSUE12
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EUROPEAN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH
AND MANAGEMENT STUDIES
ISSN: 2750-8587
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wealthiest self-made man in the world through smart investing, hard work, and proper education.
Clearly, people who gain even a glimpse of financial concepts can transform their lives from poverty.
Although reasons of such positive economic shifts are widely acknowledged, little is known about those
went from wealthy stance to poor condition. In other words, less research was heretofore done about
how one can lose his or her wealth unconsciously. Therefore, it has been found meaningful - and even
necessary - to investigate reasons behind going bankrupt while earning an above average. By looking
at the two categories: billionaires and millionaires, this article will analyze reasons behind financial
downfalls of individuals in each group.
BILLIONAIRES
Mike Tyson is an American former professional boxer who was born on June 30, 1966. Known as “Iron
Mike” in his early fights, he was recognized as one of the greatest heavyweight boxers of all time. Desp
ite
his promising boxing career and salary of at least $400 million, according to The New York Times report,
he officially filed for bankruptcy due to his poor financial management skill. It’s been reported that Mike
would spend thousands of dollars for a single jewelry at a time. He once bought $173,706 worth of gold
chain while visiting a Las Vegas jewelry store. Such lavish spending habits eventually contributed to
$23 million debt accumulation over years. Because of such poor financial management, Iconi
c boxer’s
current estimated net is $10 million. Similarly, Sean Quinn (born in 5th December, 1947) is an Irish
businessman. Although he was regarded as the richest person in Republic of Ireland in 2008, after 4
years he was declared bankrupt. This is believed to be due to his lack of management skills and huge
debt from the banks.
MILLIONAIRES
Johnny Depp (born June 9, 1963) is an American actor, producer, and musician, best known for his
versatile roles in a wide range of films. He gained global fame for his portrayal of Captain Jack Sparrow
in the Pirates of the Caribbean franchise, which became one of his most iconic roles Over the years, his
performances have earned him several accolades, including Golden Globe and Screen Actors Guild
Awards. However, despite earning millions per film and grossing over $3 billion from his movies, Depp
nearly went bankrupt due to extravagant spending and poor financial management. In 2017, he sued
his business managers, claiming they mismanaged his fortune and charged excessive fees. By 2016, he
had burned through $650 million, with expenses like 14 properties, a massive yacht, and a 40-person
payroll. Depp’s downfall was cushioned by his ongoing income from successful franchises like Pirates
of the Caribbean, allowing him to avoid bankruptcy. His story highlights the dangers of reckless
EUROPEAN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH
AND MANAGEMENT STUDIES
ISSN: 2750-8587
VOLUME04 ISSUE12
145
spending and the importance of proper financial oversight, as well as the value of negotiating fair
compensation, as Depp did with his iconic role in Pirates. Moreover, Veronica Lake (November 14, 1922
–
July 7, 1973) was an iconic American actress, renowned for her captivating performances and
exceptional style. She was best known for her femme fatale roles in 1940s films like “This Gun for Hire”
and “The Blue Dahlia”. She was also famous
for her signature peek-a-boo hairstyle. However, despite
her early fame, Lake’s career began to decline due to personal struggles, including a serious addiction
to alcohol, which most likely affected her financial stance, and in 1951 she declared bankruptcy,
marking the end of her film career.
CONCLUSION
The stories of both billionaires and millionaires who went bankrupt share almost the same thread: the
poor financial management, reckless spending, and the lack of proper oversight. Whether it’s the
luxurious lifestyle of Mike Tyson or Johnny Depp, or the poor investment decisions of Sean Quinn, these
individuals’ mistakes highlight how wealth can quickly disappear without careful consideration and
planning. However, their journeys serve as cautionary tales for those aspiring to achieve financial
success, highlighting the importance of understanding financial concepts. As demonstrated by the likes
of Madam C.J. Walker and Andrew Carnegie, the path to financial prosperity is not just about earning
large
sums, but making smart decisions, diversifying investments, and maintaining control over one’s
financial habits. After all, Life is unpredictable. Without a safety net, unexpected events like medical
emergencies or job losses can quickly drain savings and push people into debt.
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AND MANAGEMENT STUDIES
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