How To Destroy Your Wealth

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.

Also see: How To Make Your Life Completely Miserable

(Top photo credit to Jp Valery on Unsplash)

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How To Destroy Your Wealth from My Money Blog.