- How you behave is more important than what you know
Despite his deep knowledge and understanding of the stock market, Livermore was unable to maintain his wealth. His lack of discipline with money led to his downfall. He was known for his extravagant lifestyle and gambling-like tendencies. His spending, combined with poor decisions and lack of emotional discipline, led to his financial ruin.
When people become rich, they often increase their spending, upgrade their lifestyle, and incur new expenses that they didn't have before. If an increase in spending is not accompanied by an increase in wealth, it can quickly diminish your bank account. Staying rich requires financial discipline between the gap of income and expenses.
- Getting rich is one thing, staying rich is another
Managing your money is a high-stakes responsibility. It is this blend of audacity and discipline that often delineates the boundary between monumental success and crippling failure. Remember, it's not just about taking the leap, but understanding where and how you land.