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Money Drain: Trying the “Get Rich Quick” schemes lost them everything

My uncle is a dictionary example of someone that has wasted money his entire life. As long as I’ve known him he’s been the type of person to go after the next “Get Rich Quick” scheme. From potato commodities to selling video phones to collecting license plate numbers to input in the Federal Governments database as a tracker. If it’s a new business, a new idea, a new way to get rich quick then he was all over it. They were all “sure things” in order to make his millions, and none of them ever worked out.

It didn’t just end there, however. It goes on towards fleeing to Canada for a time to avoid tax evasion charges, leaving his then wife abandoned with 6 children to raise.

Over the course of these “get rich quick” schemes he married a woman who had a beautiful home that she built with her ex-husband. They actually got the mortgage down to $11,000 at one point, but were recently foreclosed on due to a second (or more) mortgage he took out on it in order to invest money in one of these big money ideas, losing at least $300,000 in the process.

They are now living in a trailer paid for by her son, she has no money left and lives off what little bit she gets from Social Security. My uncle continues to try out new business ideas, even though he now rests in his 80’s in hopes to still make his millions before he dies.

Submitted by: Anne L.

Lesson Learned:
This is a sad state of affairs that is likely all too common. Everyone wants their next “get rich” idea to come into fruition. Heck I would be lying if I said I wasn’t hoping to make a decent income off of this site.

The difference, or perhaps the secret, is that you have to be reasonable about your intentions. There are ways to make a great idea of yours work, but it takes at the very minimum the following:

  1. A day job. You can’t quit your day job for something that doesn’t supplement your income.
  2. Don’t put all your eggs in one basket. No one should rely on one source of income as their sole source of income. You have to diversify your income so that should one of them fail, you have a way to stay afloat.
  3. If you’re going to start an idea or a project, you have to invest 100% effort into it. You can’t launch an idea and expect it to take off on its own. You have to do the work to make it successful. There is no lazy income.
  4. Never risk the life of your family to try and make your endeavor be successful. You can’t risk the house on something that has no guarantee or likelihood of being successful. If you want to put money into a project, you should work hard to save up for it, not ignore the needs and safety of your family in order to get money quick. Work hard like everyone else.

I feel for this couple, and it reminds me of another couple I heard on the news that were in their 70’s and the husband had just found out that the wife had $200,000 worth of gambling debt that he knew nothing about. Imagine being 70 years old and realizing you had $200,000 worth of debt instantly, especially after thinking you were retiring for an easier life living off of your retirement and social security?

Amount Flushed Down the Money Drain: $300,000 (to say the least)

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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One Response to Money Drain: Trying the “Get Rich Quick” schemes lost them everything

  1. Pingback: Money Drain End of Month Report: June 2011 | The Money Drain

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