Reality is hard. Everybody wants something from you and you have to be cautious especially with your financials. Knowing your enemy, you will automatically select the right information in communication and think about the right questions (due the selective perception effect in your reticular activating system).

The enemy represents anything that lead to a significant net worth loss like dump consumption decisions. Every consumption, which does not satisfy a need or which can be obtained cheaper shows you one step in the wrong direction. The higher the absolute net worth, the less impact the same loss involves. So, especially low net worth individuals should be very carefully. Major reasons for huge net worth losses are:

1. Not learning financial basics (no financial protection)
2. Any consume credits (ridiculously expensive and risky)
3. Divorces (major accidents in nearly every second family)

If you are not learning financials, other will use your unknowing to your disadvantage. Any consume credit is at least two steps in the wrong direction. And, in case of a divorce you can lose even more.

What’s today’s lesson?

1. Learn financials! You cannot give that away.
2. Avoid any kind of consume credits like the plague!
3. If you marry – ask yourself carefully! It should hold till death.

Ask yourself at any financial decision: is this sell, hold or buy decision taking me one step closer to financial independence? And, how large is this step? If you have any consume loans, pay them ASAP. The avoided interest payments, will be your secure income.