These Mistakes Destroy Wealth

Are You Making Them?

🖥️ Reading time: 3 minutes

Wealth-building isn’t just for the super-smart. You don’t need to predict the future. You just need to avoid the dumb mistakes that consistently wipe out people’s money.

“Wealth destruction doesn’t come from lack of skill. It comes from avoidable errors.”

- Barry Ritholtz.

Let’s break them down—and how to dodge them. Alternatively, sign up for my Beginner Investing Master Class to learn more.

Mistake #1: Falling for Forecasts

Investors LOVE predictions. Price targets. Economic outlooks. Earnings per share guesses.

The media feeds the beast daily because predictions sell attention. But the truth? Most of it is noise.

Here’s the problem: Markets are unpredictable. Chaos rules. And chasing forecasts is like trying to win roulette by memorizing past spins.

How to stay smart:

• Learn from the experts. Read the news, listen to podcasts, and watch YouTube videos by reputable figures in the industry.
• Ignore bold predictions. Time-tested principles > flashy forecasts.
• Think in probabilities. It's not about being right once. It’s about stacking the odds in your favor over time.

Mistake #2: Letting Emotions Drive the Bus

Volatility makes people do dumb things. We get greedy when markets soar. We panic when they tank. Either way, emotions kill returns because you’re constantly watching the markets.

You don’t make your best decisions in a fire. So don’t wait for the flames to start.

Here’s how to win instead:

• Automate it. Use dollar-cost averaging. Take your feelings out of it.
• Have a fire drill. Create a crisis plan before the market drops. So when it does, you’re ready.
• Zoom out. Markets recover. Short-term panic destroys long-term wealth.

Mistake #3: Playing It Too Safe

Being too scared to invest is just as bad as YOLOing into meme stocks.

If you’re sitting on cash, avoiding risk at all costs, guess what? Inflation is eating you alive. And opportunity is passing you by.

Here’s how to fix it:

• Find balance. Take calculated risks that align with your goals.
• Invest with purpose. Build a diversified portfolio that matches your timeline and tolerance.
• Get expert help. If your financial life is complicated, bring in a pro (advisor, CPA, or attorney).

Bonus Mistake: Listening to Spending Shamers

Frugality is a tool—not a prison.

A lot of personal finance advice sounds like: "Stop buying lattes or you're doomed." But here's the truth: You can be responsible and enjoy life. If you want a new car — OK, but buy one you can afford without breaking the bank or borrowing.

Avoid lifestyle traps like this:

• Prioritize what matters. Spend intentionally. Save aggressively. But don't live in deprivation.
• Fight lifestyle creep. Just because you make more doesn’t mean you should spend more.
• Buy experiences. Stuff fades. Memories last.

Bottom Line: Avoid Unforced Errors

Most investors don’t fail because they picked the wrong stock. They fail because they panicked, got greedy, played it too safe, or chased forecasts.

Wealth isn’t built by brilliance. It’s built by consistency, discipline, and not shooting yourself in the foot.

✅ Sign up for my Beginner Investing Master Class

✅ Take advantage of my FREE Financial Freedom Faster eBook

✅ Get in touch

Make fewer mistakes. Play the long game. Let the markets do the heavy lifting.

- Steve

Disclaimer:

The following article is strictly the opinion of the author and is not to be considered financial/investment advice. CTL Community LLC and the author of this article do not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.  "Call to Leap may earn affiliate commissions from the links mentioned. Call to Leap is part of an affiliate network and receives compensation for sending traffic to partner sites such as ImpactRadius, CardRatings, MyBankTracker, and more."