Money has always been like a love affair, too sweet if you're smart enough not to get caught.
But if you also make one small mistake, it could turn sour quickly when your partner discovers your
infidelity. Just like money, if you're smart with it, you'll enjoy the benefits of always being in a
stable position in your life. Mistakes, no matter how minor, could lead to the destruction of the
wealth you worked so hard to create. Here are some of the things you probably didn't know that are
destroying your wealth. 11. Gambling
The number one rule in gambling is that the game is always in favor of the house.
No matter how close you feel you are about to win, please resist the urge because it is just a scheme
to milk money from you. You might be playing on the slot machines or card games, and you are on a
winning streak. In the long term, the house will win. It’s a well-planned illusion while at the
casino, as they want to have you there for as long as they can. They will offer free refreshments
and the environment itself will trick you with its nonexistent natural light, making you unable to
tell the time. Our addicted brothers and sisters lose more in the gambling dens, ranging from about
55-90 thousand dollars each year. That’s enough to start a business that will sustain your lifestyle!
10. Cars These raving beasts are a sight to behold,
and it's even better when you own one or two of them. However, don't be too quick to spend your
money on acquire such an asset. This is because it comes with a lot of baggage that will surely
destroy your wealth. Why? Well, buying a new car will have you paying extra monthly or
yearly charges to maintain it. This ranges from car insurance, car payments, finance charges,
and down payments. And we haven't even included the amount of fuel you need to run your errands
daily and the parking fee. This will add up to roughly $450 a month on top of the 35,000 used
to purchase the car if it was new. Maybe you thought that it would be a smart move to buy
a used car instead of a new one, which would have cost 20,000 dollars. Sure, you saved a few bucks,
but the fact is that you just bought yourself a liability that depreciates every single day.
The stats show that a new car depreciates 15% in the first year of driving it. Thereafter,
it decreases a further 15% each year. So, if you wanted to sell the same car three years later,
you'd only get $10,000-18,000 for it. Now that car dealership isn't looking all that enticing, right?
9. Debt Don't get me wrong. Debt isn't always the enemy,
as it can help salvage a failing business, or even create an outstanding income-generating stream if
well thought through. I'm talking about student loan debt and credit card debt. These two are the
most well-known American dream slayers, with up to 1.6 trillion in student debt alone in the U.S.
Stay away from the fascination of going to a more prestigious university than you can afford. It
forces you into debt that will take a good amount of time to pay off, instead of opting for a local
university that will take you in for a cheaper price. You could also look into getting grants
and student scholarships. Coupled with student loans, a majority of students find themselves
deep in credit card debt after spending their entire college years purchasing on credit the
things they can't afford with cash. These debts are carried to adulthood, leaving many shackled
to massive debt. Despite getting a handsome paycheck at the end of the month, many end up
broke because a large portion of that income is spent on repaying all the debt they have accrued.
8. Financial illiteracy Alan Greenspan once said
that the biggest problem in today's generation and economy is the lack of financial literacy. It's no
wonder many people are finding themselves deep in debt and stagnant despite having well-paying
jobs. No person is interested in learning about money management. They'd rather just wing it when
it comes to their finances, not knowing that financial knowledge is powerful. We simply
think that we can duplicate what other people are doing, and our money bags will be fuller.
Sorry to be the one to tell you this, but your finances are as unique to you as your fingerprint.
There is no ‘one shoe fits all’. You have to learn to balance what you spend on versus how much you
earn. to come up with the most workable budget for you. Learn about accounting and investing.
This kind of knowledge will be beneficial in the long run. Whereas a lack of it will destroy
your wealth more than you acquired it. 7. Fashion
Gucci bags, Louboutin shoes, a Rolex watch all to try to make a good first impression. Stop it,
please, you don't need to have the most expensive suit in the room to make
an impression. All you need is a normal-looking one that's crisp and clean.
Brush your teeth and maintain a good hygiene season with some charisma and personality.
You'll have everyone in the event looking for an opportunity to interact with you.
We can all attest to doing all this clingy, dressing just to keep up with the Jones.
But we end up looking rich outside while our bank accounts are screaming for help.
It costs more to buy a 200$ bag that you carry only once instead of buying one versatile one.
6. Eating out Did you know that
you probably spend around $3,000 a year just on take-out? That's five times the amount you'd have
spent if you'd cooked the food yourself. Don't get me started on the amount of time you wasted
waiting for your delivery to get to you. Or how long it takes to pick up the delivery yourself.
You'd be saving a good amount of cash every month by cooking your meals at home. You can stash this
money away in your emergency fund for a rainy day. Doing this not only saves you money, but allows
you the opportunity to have a hot meal every day. You can watch how many calories you're eating.
You can even personalize your meals as much as you want without the worry that the restaurant will
forget to add extra gravy again. Furthermore, it's healthier to make that dinner yourself.
Don't fall into this money trap and have your wealth robbed from you as you sit by and watch.
5. Wrong relationship Being in the wrong relationship might
just cost you a fortune in your finances. Up until today, you probably didn’t know,
but statistics prove that the average man spends close to 120,000 dollars on dates.
A wedding costs about $34,000 to plan, with an additional $6,000 for an engagement ring.
Can you imagine spending this much only to be hit with divorce papers? Quite expensive,
don’t you think? A survey carried out has shown that millennials getting into marriage secure
themselves by signing a prenup in case things fall apart. In that case, they’ll walk out of someone’s
life with something in their pocket. I don’t know whom it might concern, but you better be keen when
getting into relationships because the wrong relationship will not only cost you emotional
grief but will also dent your wealth. The average marriage that works out in the US is 50%,
so it’s important you know this before venturing into it blindly. This means that if you flip a
coin, you’ll be able to predict whether your marriage will work out or not. In the case
that things don’t work out for you, it costs an average of 13,000 dollars to facilitate a divorce,
not forgetting other expenses such as alimony and child support that would be on your back.
Without a doubt, we better invest smartly to avoid these blunders that will destroy our wealth.
4. Shopping Shopping has turned into a famous
trend all over the world where once someone makes some small amount of money, all that runs through
their mind is how they’ll swing by the mall and shop till they drop. We should be very precise in
our shopping and it would be better if we tagged along with a shopping list to avoid the temptation
of overspending. A close look at this will help realize how much money is lost in thrift shops
and shopping malls. All these shopping sprees eventually lead to debt, and even more debt
if you aren’t keen enough. Can you believe that the average credit card debt stands at $57,008?
3. No emergency fund Living without an emergency fund
is like going hiking and choosing not to carry an extra bottle of water.
because the instructor said that you'd be back from the hike in 6 hours. Only for you to end up
dehydrated because your only water bottle fell off a cliff. The point here is, life is unpredictable,
it's so important to have an emergency fund ready. There isn't a standard amount of money you need
to keep for any emergencies. Some say that you need to have saved triple your monthly income
while specifying a certain amount. However, we are sure that not having an emergency fund will
leave you broke in the event of an accident or calamity. You'll be forced to pay out of pocket
or max out your credit to shelter yourself. This will, in turn, lead to several financial strains
unfolding in your life. You'll be left wondering where your whole salary is disappearing to.
2. Alcohol Some claim that a little wine every
day does more good than harm. But have you ever sat down to think about the financial implications
that are associated with drinking? You're lucky if you drink just a little, because heavy drinkers
are suffering out there. In 2018 alone, people have already downed more than 6.3 gallons of beer
and 900 million gallons of wine. Do the math, and you'll be stunned. Even more shocking is that the
wealthy and those who are well educated are the ones partaking in this joyous affair. Be smart
to avoid this other money trap, because we've all heard those stories. The ones who were once
at the peak of their careers, both in title and income, end up losing their jobs because they
go out drinking way too much. Reporting late to work or even delivering inaccurate reports
such a waste of good talent don’t you think? 1. Jewellery.
Hip-hop has a firm grip on the dress code we wear, as well as the bling and glamour that
adorns our outfits. You’ll see little to none of these celebrities without some dope iced-out chain
or a gorgeous Rolex watch worth millions. Take a look at Lil Wayne. For instance, he owns a pinkie
ring worth two thousand dollars and Rick Ross’s custom-made chain worth 1.5 million dollars!
Practically speaking, owning such things may destabilize your wealth. Did you know that
jewellery is a depreciating asset? Probably not, so next time you invest millions in jewellery,
you better take a moment to critically assess your decision. Even if you purchase top-shelf
jewellery, it won’t bring back as much as you invested, even if you resell it after a day.
Jewellery is merely a status symbol that you really won’t need to spend cash on.
At the end of the day, the amount of wealth you are worth is not calculated by the gold
chain on your neck. Be smart. One last question before we wrap up:
What will you do when you are given ten thousand dollars in cash? Let us know down below.
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