Why are some people useless at managing money?

Answer 1

There are a number of reasons why certain people are useless at managing money. Here are some of the categories of reasons:

1. They may have grown up with a paradigm of lack. They see money as unobtainable, and they want a lot of things, so they blow through it as soon as they get it.

2. They may be addicted to gambling. Behind a gambling addiction there is often greed and the thrill of winning big, or even losing big. Compulsive gamblers often have a "magical" kind of thinking, that if they do the right rituals, pray to the right deities, or do the right things, that somehow, they will win the next time.

3. Some may be addicted to substances. Someone who is addicted to alcohol, pain pills, inhalants, and/or illegal drugs lets the substance control them. All they think about is their next high, and if you give them money to invest or buy food, they will buy drugs or alcohol instead.

4. They may be short-sighted. A cardinal law in wealth management is to never spend your principal. If you have a huge sum of money, you would do better to put it in low risk investments and compound the interest back into itself if possible. Even an interest-bearing insurance policy may be a good idea.

5. Some just fail to budget and plan as necessary.

Answer 2

There can be several reasons why some people struggle with managing money. This can include lack of financial education, impulsive spending habits, poor budgeting skills, external factors like high debt or low income, or psychological factors such as difficulty delaying gratification or coping with stress. It's important for individuals to identify the root causes of their money management challenges and seek support or resources to address them.