8 Critical Factors That Could Crush Your Wealth

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Welcome to the 147th edition of the Inkosi Wealth Scoop!

In this episode, we’ll talk about eight wealth killers that could undermine your financial success and discuss proactive steps you can take to mitigate their risks.

We cover:

  • Limb #1: The Concept of Diversification
  • Limb#2: Dependence on the Rising Market
  • Limb #3: Dependence on your Time, Skill, and Input
  • Limb #4: Dependence on your Income or other Assets
  • Limb #5: Reasonable Liquidity
  • Limb #6: Assets Outside of the Median
  • Limb #7: Reliance on Tax Benefits or Change of Government
  • Limb #8: Exposure or Reliance on the Banking System and Finance

If you’re an investor or a business owner who wants to protect your wealth and avoid financial pitfalls, then make sure to listen to this episode! 

Show Notes:

00:00 Intro

05:19 Limb #1: The Concept of Diversification

08:46 Limb#2: Dependence on the Rising Market

11:03 Limb #3: Dependence on your Time, Skill, and Input

13:31 Limb #4: Dependence on your Income or other Assets

16:16 Limb #5: Reasonable Liquidity

19:08 Limb #6: Assets Outside of the Median

21:27 Limb #7: Reliance on Tax Benefits or Change of Government

23:05 Limb #8: Exposure or Reliance on the Banking System and Finance

25:20 Final Thoughts

26:18 Outro

How do you stay safe during unpredictable and unstable times, like the current state of the market?

Well, in today’s episode, we will talk about that and more.

Inside my program, I created content to guide you in making smart decisions and taking the necessary actions to stay safe in the next 12 to 18 months. 

But before I start, I want to mention something I’ve discussed in my previous podcasts: we can’t predict the future accurately. 

Despite various influencers, media, and economic experts trying to forecast what will happen in the next 12 to 18 months, the truth is that no one knows what will happen.  

Studies have shown that forecasts are essentially random and cannot be relied upon.  

With that in mind, I want to share with you what I call the “eight limbs of wealth stability.” 

During a boom cycle, we may not think protecting our wealth and diversifying our investments is that important. We may study these concepts but not take them seriously until a major event happens and we realise we should have paid more attention. 

Right now, there is fear in the market and uncertainty about what will happen next.  

We don’t know if it will be really bad or if things will turn out okay.  

But I don’t want you to feel unprepared and caught off guard if things do take a turn for the worse. 

About four years ago, I introduced the “eight limbs of wealth stability” to my high-net-worth investor community. I’ve talked about some aspects of it in previous podcast episodes, but I want to revisit it now in the context of the current market situation. 

Clearly, some people will be hurt in the property and stock markets in the second half of this year.  

Buyers are hesitant to pay high prices, but sellers are also reluctant to drop their prices.  

Until we see some flexibility from either side, the market will not see a big shift, and any changes will happen slowly. 

Personally, I like to keep track of properties on realestate.com for fun. I look for properties that could be developed and also for properties that I dream of owning someday. 

Recently, I’ve noticed something interesting.  

Properties that would have been sold very quickly a year ago are now sitting on the market for a long time without being sold.I haven’t looked at any data, but this observation tells me we might be approaching a problem in the housing market.  

The backdrop for what I want to talk about is the framework of the eight limbs of wealth stability.  

These are really important if you want to keep your money and continue growing it, no matter what’s happening in the market. 

Successful investors know what’s currently going on, but they don’t let it stop them from building wealth. They adjust their strategy as needed to protect what they have and make smart investments. 

They know that market conditions can change, so they must be adaptable. They focus on protecting their money and choosing investment strategies to help them succeed in the long term. 

Now let’s talk about the eight limbs in more detail.

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