For years you have been working so hard, take pains for accumulating wealth but the value of your wealth decreasing every year, instead of increasing. The worse is that you do not realise it until you reach the worst point.

There are some matters that really erode your wealth by decreasing the value that makes your wealth lessened either the number or the value. The cause could be several things you realise but you do nothing for that. You might realise them but you do not realise the impact is grinding.

That is why most financial planners ask you to routinely check up your finance, for the sake to detect any thing eroding your wealth. So, what makes your wealth decreased unconsciously ?


Indeed, tax is one of the grindings on your wealth. Tax planning can make you save more money. But tax experts said that the most effective way to avoid this is being active especially if you are a business man. So, it is important to know anything about taxation alongside a consultant beside you. If you are an employee, understanding taxation can help you to avoid any tax problem in the future. So, do not avoid taxation, but be smart dealing with it.


Inflation is the second matter that decreases your wealth value. The concept of inflation is easy to understand. If several years ago, you can buy a certain good with a certain price, you will not get the same on the next several years later. The way to accomplish the problem is finding out any income source that has capability in beating the inflation percentage.


Among the three grindings, spendthrift is the most dangerous grinding one. It is the power that push you shop things that even you do not need at all. You just want it, not need it. The fact is that many people get trap with such a bad life style. Even some people that it is the worthy life style they should use in their life. Then you will find there are people who have outcome more than income they get. So, how can they pay it? The way out is a credit card. At the end, you will get trapped into debt that gives you so big interest over time. You need to realise that even rich people know how to spend their money. They would not live in luxurious lifestyles. That is why they stay wealth by the time goes by.