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Here are five ways wealthy people lose their money andhow it’s possible for you to avoid it.
Even wealthy individuals should attempt to avoid wasting money and should keep an eye on their budget.
Diversification of that wealth into noncorrelated assets protects the long-term viability of that wealth.
It is one of the paradoxes of wealth.
The wealth accumulation and wealth preservation stages need to be managed differently.
Overleverage
Another mistake wealthy people may make is taking ontoo much debt.
Unforeseen Expenses
Even with solid savings, unexpected expenses can wreak havoc.
The death of a loved one or asudden job losscan create an unbearable financial hardship.
Some we have seen include medical emergencies, long protracted legal battles and business interruptions.
The best way to avoid these common mistakes and mishaps is through proper planning.
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