7 Ways You’re Going to Lose All Your Money
You worked hard and got rich.
Good for you!
But do you know what happens to far too many people who get rich?
They find out that keeping the money is harder than earning it in the first place.
1: Your Ego Will Ruin You
You’ve got a palatial estate, a dozen fancy cars and wild parties every night. Your business is doing so well you let others run it for you.
Then BOOM, you lose everything.
What happened?
Maybe your crypto went bust overnight and you lost millions. Maybe your company fired you for being an incompetent jack***. Maybe you’ve done shady deals that are now coming back to bite you.
Maybe you did all three and a whole lot more.
Who was that person who did all those things? Certainly not the guy or gal who worked so hard to build the business in the first place.
Something happened, and its name is ego. Your ego told you lies about how great you are, how invincible you are and how you can do no wrong.
And like a dummy, you listened.
2: Things Change
You make a fortune slapping up websites full of ads and ranking them on Page 1 of Google. Then Google flips a switch, and your sites are now on page 283 of the search results.
Busted.
You make a fortune in crypto and then overnight your crypto is officially worth nothing.
Busted.
You make a fortune in (fill in the blank) and then things change.
Because things always change.
What made money in 1995 no longer worked in 2003. What worked in 2005 stopped working in 2008 and so forth.
You can’t predict these events, but you can be ready for them.
Set money aside. Build multiple streams of income. Don’t assume a lot of debt.
In other words, be smart.
3: You Don’t Own the Platform
In the early days of Uber and Airbnb, people were making cash hand over fist. Then Uber changed how they pay, and people were making about a quarter of the money for the same work. Airbnb became overcrowded with overpriced, lousy places to stay and people went back to hotels.
If you don’t own the platform, you’re not in control.
If you depend on a certain platform or tool you don’t own, you might think about how to change that.
Ask yourself how you can own more of what you do.
4: You Always Go for The Fast Win
You’ve got choices.
One money-making venture could produce big money fast, but it’s risky.
Another investment is a sure thing, but it pays out slowly over time.
If you put all your eggs into the fast win / high risk basket, you could lose it all.
When you do make money, stick some of it in something safe, like real estate. It will still be there for you when everything else goes topsy turvy.
5: You Go Cheap on Security and Don’t Diversify
There are hackers who steal websites, bank accounts and more.
But that will never happen to you, right?
Your WordPress site is taken over by someone on the other side of the world.
Your digital wallet gets hacked, and you lose millions of dollars.
Now what?
If only you had taken some security precautions as well as diversifying.
Keep your website secure and completely backed up. Have multiple bank accounts. Use multiple stockbrokers. Invest in multiple pieces of real estate. Keep some cash hidden just in case.
Diversify like your financial life depends on it.
6: You Keep Up with the Joneses
In the US they have an expression: “Keeping up with the Joneses.” It means if your neighbor gets a $100K car then you need to buy a $110K car to not only keep up, but to also ‘beat’ them.
It’s utter rubbish, but peer pressure makes people do crazy things.
When you’re rolling in dough it’s going to be super tempting to buy that $110K car. And for a few weeks you’re going to be riding high, too.
But then you get a scratch on the door. And a ding on the fender. And your first trip to the repair shop costs as much as a used car. As you lay awake at night, stressing about how you’re going to continue to afford this motor beast, you realize you’ve done a really dumb thing.
You could have purchased a very nice car for $30K and invested the $70K in stocks or bonds or real estate or even buried it in your backyard.
Think about that… burying the money would make more sense than wasting it on a car that costs a fortune to maintain.
To heck with the Joneses.
7: You Burn Out
Plenty of business models mean continuous, never-ending work of one kind or another.
Sooner or later, this can burn you out. You simply cannot face writing another email or creating another product or putting together another call.
And so, you take time off. A week maybe. Except that week turns into a month, and the month into 3 years.
And you’re broke because in all that time, money only flowed out and never flowed back in.
Realize now that you’re going to one day get tired of what you’re doing and get ready for that moment.
Maybe it means building your business in a way that you can one day sell it for major bucks and simply retire or do something completely different.
Maybe means creating multiple streams of passive income, such as having a couple dozen books that continue to sell for many years to come.
Even the sun itself will burn out one day. Be ready for the day you decide enough is enough and you want to start something brand new.
