Lack of financial diversification
One of the biggest goals for you when you’re in debt is to figure out what your investments should be.
The number one destroyer of wealth is “Lack of financial diversification” and if you’re still in debt now you are destroying your short and especially long term WEALTH because there is no diversification.
Wealth diversification is taking all of your assets and spreading them. It’s similar to the old saying, “don’t keep all your eggs in one basket.” If you drop the basket you lose all your eggs.
The same goes for your financial wealth. If it’s all in one investment you risk going broke in one shot.
The same goes for debt. If you owe lots and lots of money and have no savings you’re in a WEALTH DESTROYER position. It’s not a good position to be in and I would argue it is even more dangerous than if you had all your money in one investment. If you have all your money in one investment you have a shot of it going up in value.
With debt it will never go up in value it will always cost you money. The longer you wait to pay off your debt and if it’s the only investment you have you’ve got to start and pay it off now.
Use these posts for strategies and encouragement to get it done.
David Dassow
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1 comment:
No, the biggest wealth destroyer is a divorce! - at least on the men side.
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