Our last blog talked about the three failure traps. We crossed two of them off the list – leaving us with just failure trap number two to figure out – how to avoid putting our money into things that can – and often do – lose value.
Avoiding Failure Trap No. 2 is so critical, my number one rule of wealth-building is First, Lose No Money.
I borrowed my rule from the doctor’s Hippocratic Oath, which admonishes aspiring new doctors to “first, do no harm.” In other words, before med school teaches a doctor how to heal people – they first teach them how to not kill them in the first place.
Seems to make sense – but in the wealth-building world, mainstream advisors rarely – if ever start their pitch talking about how they’re not going to lose your money. Instead, most talk about how they’re going to grow your money.
But just as car crashes and scandals sell newspapers and drive TV ratings – talking about growing your money is much more likely to win a financial advisor a new client – than talking about how they’ll first protect you from losing any money.
Have you ever lost money in an investment?