The Four Destroyers of Wealth, and How to Avoid Them

Actually, some of them can’t be avoided, only minimized.

Here they are:

1. Taxes

It’s hard to avoid taxes completely, nor should we want to. As capitalists living in a free society, we should all be willing to pay our share of taxes. They of course fund many of the things we enjoy, like highways, schools, and our soldiers who preserve our freedom.

The key, though, is to pay only your fair share, and no more. To do this, you could invest hours, days, weeks or more learning all about the tax laws. And, you’d still not be able to become as tax efficient as possible.

The smart thing to do here is educate yourself on the basics and hire a good CPA. Not just a tax preparer, I mean a real Certified Public Accountant. If you’re in business of any kind, this is a must for at least three reasons:

First, you don’t have time to become a tax expert. Second, you’re paying a lot more in taxes than you should. A good CPA can use the tax laws to your advantage. They’ll come up with legitimate tax breaks you could never imagine or find on your own. And third, the IRS seems to give self-prepared tax returns a whole lot more scrutiny than those prepared by a reputable CPA.

2. Interest on debt

This is a big one, and mostly avoidable. Credit cards, car loans, student loans and mortgages are the most common. Even more wealth-crushing are loans on doo-dads like boats, motorcycles and other toys.

Albert Einstein said, “The most powerful thing man has ever created is compound interest.”

I believe him.

Do everything in your power, and borrow power from others around you, to get out of debt and put yourself of the receiving side of compound interest.

3. Inflation

The price of the goods and services we need and want to purchase is, on the average, trending upward. Gas, food, cars and homes, they all cost more now than say, ten years ago. This is inflation. It’s outside our circle of control. But we can certainly minimize its effect on our wealth.

The best way is to first, get out of debt. Then, make investments that outpace inflation.

I believe the best investment you and make is in your own education. Not just your academic or vocational education (the one that helps you earn a living), I’m talking about your financial education.

Learn as much as you can about how money and business works. Get with the person who shared this website with you. Chances are good that they are investing in themselves and already learning the secrets that only the top 5% know, and they can give you some insight on where to start.

4. Overspending

This one is completely in your circle of control. It might not feel like it right now, but it is. You can get a good grip on your spending by implementing a system to track the money flowing into and out of your life.

Once you do that, and you have your spending under control, implement new habits that sustain your gains. Pick up a copy of Atomic Habits and read it over and over, implementing its lessons, until your new habits become second nature.

One last tip here, find an accountability group to help you and encourage you to stick with it. There is power in numbers.

Want more help reaching your goals?

We meet online every Thursday evening at 8:00 p.m. Eastern.  If you'd like to learn about the Mentorship360 Mastermind Group and coaching program, get back with the person who shared this post with you . It’s invitation only. They can provide more details and explain the application process.

Also, you might find these free e-book downloads helpful:

Seven Steps to Six Figures and Beyond A Guide To Help You Reach $100K, $200K or More

Master Your Money in 7 Days Get Complete Control of Your Money and Enjoy Financial Peace Using the World's Simplest Budgeting Method

In Gratitude,

Dale

Feel free to connect on Linkedin at https://linkedin.com/in/dalegibbons Be sure to personalize your message and mention this site and blog post, or it's unlikely that I will accept your request (sorry).