What Wealth Mismanagement Brings About

wealth mismanagement

Wealth mismanagement is a key factor for startup failing

It is often times a more challenging task to manage money than earning it. Wealth mismanagement is common for the fall of a startup.We get the embrace of success and we fail to keep the relationship well with it. When we are blessed beyond and above, we find it tough to manage the blessings and in process, lose some. There are quite a number of High Net worth Individuals (HNI) in the current world whose parents have kept some solid investment on them, even before they were born and grown. It means that once they hit their teens, they are already rich and thanks to their parents’ wisdom.


During this period, when children are given rights to handle money, it is easily possible for them to park their wealth on a wrong path and get astray with several financial service schemes that approach home. However, it is their innocence in the financial world that leads them to give away tiny part of the huge wealth to everyone who comes up with a scheme which says to help them down the line. Little did they know the danger that they are going to face when investing money in multiple schemes, as it only comes down to managing a small amount of their total wealth at different locations, which is way unprofessional method of investing. It is a big miscalculation as the only person who gets benefited from there is the fund manager.


After the soon realization of the above, they try to settle down by buying equity shares, which allows them to be the members of the company. But there won’t be any appreciable growth because as time progresses, economy grows and obviously the share prices too. Inflation also adds to this list and this increase will make them think that they are progressing. But they are actually moving up just like everyone else in the market and fail to have an investment plan. Their thought process would be only to buy and hold themselves, because they have already failed by trusting many in the past.

This results in the overburdening of the person alone on failing to check with everything and keep an eye on every financial asset or share that he possesses. He can never track his results all alone and can hardly come to a wise decision.

How-to overcome wealth mismanagement

To overcome this, one has to be brutally honest to himself when analyzing of the past. He should realize that he missed opportunities, the reason for missing and learn a lesson in order to avoid the same errors the next time. Unless they are going to analyze their shortcomings, there is no joy in the longer run. To blemish ourselves and come up with confidence is not a big thing but to accept what we have been and what we are, and come up with how we need to be takes more of courage and self-establishment. After all, the easiest person in the world to fool is ourselves. It would cost us more, if we don’t realize it soon.

This article is a confluence of Dr. Aniruddha Malpani’s (Director at Solidarity Investment Advisors) words and research on on what exactly does Angel Investors look for in a startup.

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