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.

Budgeting, investing, maintaining fiscal responsibility

6 Rich Celebrities Who Went Broke and Declared Bankruptcy. (no date). Available from https://www.moneycrashers.com/bankrupt-celebrities-rich-broke/.

Anon. (no date). 6 Rich Celebrities Who Went Broke and Declared Bankruptcy. Available from https://www.moneycrashers.com/bankrupt-celebrities-rich-broke/.

Carden, A. (2024). How Rich People Create Poverty | The Daily Economy. Thedailyeconomy.org. Available from https://thedailyeconomy.org/article/how-rich-people-create-poverty/.

Clark, A. (2022). How Madam C.J. Walker Became a Self-Made Millionaire. HISTORY. Available from https://www.history.com/news/madam-cj-walker-business-millionaire.

Constantine, K. (2023). Top 5 ways billionaires are bad for the economy. www.oxfamamerica.org. Available from https://www.oxfamamerica.org/explore/stories/top-5-ways-billionaires-are-bad-for-the-economy/.

Lleras, C. (2005). Path Analysis. Encyclopedia of Social Measurement, 25–30. Available from https://doi.org/10.1016/b0-12-369398-5/00483-7 [Accessed 7 October 2021].

Srivastava, P. (2024). Billionaires Who Went Broke | Bankrupt Billionaires. StartupTalky. Available from https://startuptalky.com/billionaires-bankruptcies/ [Accessed 3 December 2024].