Hi folks! Financial collapse often hits those who look the most successful. From lottery winners to the newly middle class, the real issue isn’t income but behavior. Let’s dive in
Lottery Winners and Sudden Wealth
Around 70% of lottery winners go broke within five years. Sudden wealth magnifies habits rather than changes them. People who never managed money well tend to overspend, give too much away, or invest blindly under social pressure. Easy money exposes old patterns.
The Newly Middle Class
Those climbing into the middle class are now among Canada’s most indebted. After years of scarcity, people spend to prove they’ve made it. New homes, cars, and lifestyles that look stable but rest on credit. One job loss or emergency can send them to below zero.
Small Business Owners
Self-employed Canadians often appear successful but quietly struggle with inconsistent income and high expenses. Many reinvest every dollar into the business, leaving nothing for savings or taxes. One slow season can wipe out both business and personal stability.
High Earners Without Financial Skill
Doctors, lawyers, and other professionals may earn well yet still go broke. Education doesn’t equal financial literacy. High fixed costs, delayed gratification, and overconfidence make them vulnerable when income dips or spending outpaces planning.
Dual-Income Households
Two paycheques can mean twice the spending, not twice the savings. Many couples assume the other is managing money, while costs multiply. Two cars, commutes, and lifestyles. Without clear coordination, they drift into quiet debt.
The Real Reason People Go Broke
Across all groups, the root problem is behaviour, not circumstance. People fail when they mistake income for wealth and comfort for security. Sustainable stability isn’t about how much you earn — it’s about what you keep, protect, and plan for.
Author: Derek G. Boucher
