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There are many reasons as to why people lose their money, many of which are the result of poor decisions, scams, and addictions. Everyone makes mistakes; however, when the result is a loss of a large amount of money, it tends to sting a little more then say going out on a date with the wrong person. Scams, for the most part, can be avoided as long as you maintain a sense of skepticism and aren't looking to be scammed. People looking for a get rich quick scheme are looking to get scammed. For the most part, the ideas work, but they require a significant amount more effort then what is advertised and probably require some initial investment. Addictions can be the quickest, and also the most painful way to lose your money. Addictions are things you can control, but for one reason or another you choose not to. In most cases, addictions take control of your life and before you know it you're a slave to your addiction and it ends up destroying your life.

No one ever makes a conscious effort to lose their money, but it happens. When people come into large amounts of money, either by winning the lottery or an inheritance, they tend to make emotional decisions and impulsive purchases. I read a study once that found that people who win the lottery are worse off financially five years later than they were before winning the lottery. This is the result of poor decisions. They buy houses, cars, boats, and other material things they cannot afford and for the most part depreciate in value rather than appreciate. People who win the lottery are most often uneducated people who do not understand the importance of investing and growing their money through compounding interest. They want the things they could never have before and they want them now. One sad fact I learned is that people who go on game shows and win prizes often have to sell or forfeit the prizes they win because they cannot afford to pay the taxes on them. If you ever come into money, remember this; stay humble. Do not let your emotions take control of you and always think before making a huge purchase.

People who fall victim to scams are more often than not people who are desperate to find a get rich quick scheme. Wealthy people are less likely to be scammed because they are not desperate for money, but they can be greedy which in turn could lead to them being scammed. When considering if something is a scam or not, remember, "If it seems too good to be true it probably is." However, if you have been scammed don't

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