2026-01-17 15:21:13

The three major pitfalls that can cause ordinary people to fall back into poverty, each of which can prevent you from turning things around.

First is high-leverage home buying. Monthly payments directly drain cash flow, and once housing prices adjust, all previous efforts are wiped out. The lessons from the neighbor are still fresh in mind.

Second is blindly venturing into new industries. The saying "it's like crossing a mountain to switch industries" is not without reason; failure rates exceed 85%. Most people fail not because of poor execution, but because of ignorance about the new field.

The third and most painful pit is throwing money into raising children. The endless pit of educational investment is well known; the money poured in may not bring the desired returns and could even be wasted.

After entering middle age, maintaining wealth is more challenging than earning it. Those who can live calmly are never because they earn a lot, but because they understand their limits. Financial management must leave a way out; once you step into some pits, you might never get back up in this lifetime. True financial freedom is not about how large your account balance is, but about always having a chance to turn things around.

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ser_ngmi

· 20h ago

High-leverage house buying is really intense; quite a few people around me have already given up.

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LiquidationWizard

· 20h ago

High leverage, I really know someone who has fallen into it. When the housing prices drop, they suffer a direct loss, and they are still paying off the mortgage... Bro, your words hit me. Guarding wealth is indeed much harder than making money. The trap of raising children is too deep. Some parents' investments really end up as water under the bridge. The data on blind entrepreneurship is frightening. The failure rate is so high, yet many still rush in. Talking about acting within one's means sounds easy, but few actually do it... Only in middle age do you realize that having a backup plan is more valuable than having more zeros in your account balance. Paying such a huge monthly mortgage can be exhausting. Once something goes wrong, it's all over. It’s heartbreaking. The concept of the three poverty traps hits hard; there are too many examples around me.

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FlashLoanKing

· 20h ago

High-leverage house buying is truly incredible; friends around me have been completely trapped and stuck. I've seen too many cases of pushing kids hard; not only does it burn money, but it also pushes children to develop psychological issues. Taking things within your means is not wrong, but most people simply can't do it. Holding on is harder than earning; that's the real truth.

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ContractBugHunter

· 20h ago

Leverage to buy a house is really the ultimate move; I already have two friends who are trapped and unable to get out. I've seen people fall into all three of these traps, and the worst is the "chicken baby" type—spending hundreds of thousands but nothing changes. The 85% failure rate for startups is probably conservative; the failure rate for Web3 startups might be even higher haha. The phrase "know your limits" is well said, but unfortunately most people can't take it to heart. The most terrifying thing about draining your cash flow with monthly payments is that once the market reverses, you'll be out of bullets. True freedom is having a way out, not how many zeros are in your account.

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ApeWithAPlan

· 20h ago

The biggest fear is the high leverage approach; I've seen too many people lose their homes and end up with a mansion. I'm also exhausted from throwing money into the "chicken baby" investments; the money invested feels like it goes down the drain. Saving money is much harder than making money, this really hits home. Knowing your limits sounds easy, but actually doing it is too difficult.

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