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This increasingly common mindset might be more harmful than you think.
As tempting as it is tobuild wealthquickly, it can be incredibly dangerous for your financial well-being.
Here are four commondangers of building wealth too quickly and how you’re free to avoid them.
This phenomenon pops up if someone suddenly has more expendable income than theyre used to.
Here are some tips to keep lifestyle creep from draining your income:
2.
Falling for Get-Rich-Quick Schemes
If an opportunity seems too good to be true, chances are it is.
Common get-rich-quick schemes you might encounter today include:
These opportunities may not immediately stand out as scams.
They may also be perfectly legal.
Dolling out risky investment advice on social media is also legal even if its unfounded.
To avoid falling for dangerous get-rich-quick schemes, you may need to adjust your expectations.
Take some time to research every opportunity you come across.
Remember, if it were really that easy to earn fast money, everyone would be doing it.
Investing your money is almost always riskier than saving it.
For example, a ratio of 75-15-10 can also help you save while slowly building wealth.
Gambling With Money You Dont Have
How much money do you have to invest?
It might be less than you think.
Remember that all forms of investment come with some level of risk.
Thats why its important to set an investment budget before you enter any financial venture.
Draw a line between money it’s possible for you to invest and money you cant.
Avoid gambling with:
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