The Impacts of Sudden Wealth Syndrome on Entrepreneur

When you suddenly get rich, you will naturally think that everything will fall into place. The reality is quite the opposite. Instead of feeling happy and carefree, you will become increasingly stressed and anxious. As you realize that your newfound wealth is not limitless, it will create an impact on your emotional and mental wellbeing. Sudden wealth syndrome is a term coined to depict the psychological issue that comes with sudden wealth.

Some entrepreneurs who suddenly become wealthy can get entangled with confusion and guilt due to newfound success. They will also exhibit a sense of shock over their good fortune. Therefore, they will have trouble believing that the money is genuinely theirs and, as a consequence, will develop severe anxiety over their wealth.

On the other hand, young entrepreneurs often develop an “identity crisis” when they become successful overnight. They will feel cut off from their peers and are not sure of themselves anymore. In contrast, entrepreneurs who strike it rich in their fifties or sixties often can handle sudden wealth better than other age groups.

Newly wealthy entrepreneurs also will experience changes in their relationships. Some close friends and family may resent their good fortune while others will start acting friendlier than usual. Both of these situations will only lead to a feeling of loneliness and isolation. There will also be a situation where these people may become parasitic.

More often than not, this new wealth will change one's behaviour. The behavior changes can also push close family and friends away or invite new friendships with wealthy people. However, even with other wealthy people, it can be difficult to differentiate whether the friendship is genuine or opportunistic.

Suffice to say that sudden wealth syndrome can leave a long-lasting impact on several aspects of entrepreneur life. Many newly wealthy entrepreneurs also did not have the right support regarding this issue. Needless to say, financial gain does not equate to overall happiness.