Offense vs defence in financial planning

Financial planning is not a game it is a serious business which defines how well you and potentially your future generations will live.

Why future generations? Well take a good look at the example of the Ambanis. Both the brothers started out with the same really large wealth .. in billions of $ and look at where they are now.

Mukesh Ambani has grown his wealth many fold with his foray into reliance retail , Jio.

Anil Ambani has withered away his entire fortune with his brother having to pay 500 cr for reliance comm else he would have gone to jail.  ( The brothers don't get along very well and the property had to be divided ).

So definitely there will be a difference in the next generations of wealth for the Mukesh and Anil Ambani groups.

So what do we learn from this... as a corollary with a game play.. we need to learn how to play not only offence ( earning more) but also how to play defence ( ensuring we keep , save and invest the money ).
There is NO use of attempting to fill a large bucket with a large hole at the bottom .

The method that people use to grow wealthy are usually how to play offence.. which means how to earn more money.. bigger job... bigger risks etc.  They believe that with increasing income one can easily be wealthy.

However when one looks at people who came into money very quickly one would find that they also very quickly lose money- perfect example of filling a bucket with a hole under a waterfall.

Look at people who made a lot of money through sale of land, winning a lottery or sports people.

We will look at in the next few posts how to create a both offense and defence strategies for you to make wealth AND keep it.

Understanding this .. it's simplefinancialsense.