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7 Things That Are Ruining Your Wealth:
1.
Many people mistakenly believe their primary residence is a great investment.
Your Car
Cars are notorious for losing value quickly.
Singh notes that for 99.9% of people, a cars value plummets the moment it leaves the dealership.
Financing an expensive vehicle adds to the burden, with many Americans makingmonthly payments upwardsof $1,000.
Instead of financing a pricey car, consider buying a reliable used vehicle outright.
Being Cheap
Skimping on essential services likeaccounting or property managementcan cost you dearly in the long run.
Singh shares personal experiences where hiring cheap accountants and property managers led to costly mistakes and penalties.
Impulse Investing
Emotional investing can be disastrous.
Singh highlights the tendency of investors to panic sell during market downturns or chase hot stocks during rallies.
This buy-high, sell-low pattern erodes wealth.
Instead, focus onlong-term trends and fundamentalsrather than reacting to market noise.
Educate yourself and invest based on solid financial principles rather than emotions.
Short-Term Loans
Reliance on short-term loans and credit card debt is a severe wealth killer.
The average American household carries about $6,500 incredit card debtat an average interest rate of 27%.
Making only minimum payments can result in paying over $18,000 in interest alone.
Impulse Purchases
Impulse buying has become easier with online shopping and targeted ads.
This cooling-off period helps determine if the item is a need or just a fleeting desire.
By avoiding impulse purchases, you’re able to save significant amounts of money annually.
Finally, Singh advises caution when taking financial advice from the internet, including his own.
Every persons financial journey is unique, and blindly following advice can lead to poor financial outcomes.
By avoiding these seven wealth killers, you’re able to create amore robust financial foundation.
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