Sat. Jun 10th, 2023

How To Destroy Your Wealth

MARCH 15, 2023 BY JONATHAN PING1 COMMENTMy Money Blog has partnered with CardRatings and Credit-Land for selected credit cards and may receive a commission. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

Charlie Munger and his principle of inversion tells us that sometimes the easiest way to achieve something is to flip it and consider the best ways to accomplish exactly what you are trying to avoid. Accordingly, check out this slide deck about Avoiding Financial Disasters by Barry Ritholtz (full 1-hour video presentation here).

If you would like to destroy your wealth, here are the top 10 ways to do so:

This may sound overly simple, but nearly every single wealthy person who has gone broke has used one of these methods. Obviously some of these are harder to avoid than others, but most are clearly identifiable and avoidable. Give them a wide berth. For example, if you had most of your net worth in shares of Silicon Valley Bank or Signature Bank, you may have made big gains for a while, but in the end be left with nothing. You should only have to get rich once.

SOURCE https://www.mymoneyblog.com/how-to-destroy-your-wealth.html?lctg=145328671

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