Imported Article – 2026-05-20 05:01:22

When examining the journeys of self-made millionaires and billionaires, it often appears their success stems directly from their determination and smart choices. Yet, some of these decisions may border on reckless—emulating them could be unwise for most of us.

The narratives of those who rise from humble beginnings to extreme wealth are undeniably motivating; however, practicality is crucial. Therefore, it’s advisable to steer clear of these four specific choices made by wealthy individuals. (See also: 5 Bedtime Routines of Famous Financial Gurus)

Leaving high school early

Many remarkably successful people have not completed high school, and their lack of a formal education didn’t hinder their ascent in various industries. Figures such as Wendy’s founder Dave Thomas, Tumblr creator David Karp, filmmaker Quentin Tarantino, and Virgin Atlantic’s Richard Branson all left high school and grew into multi-millionaires.

While these individuals managed to achieve tremendous success without their diplomas, it’s misguided to think everyone can replicate this unconventional route.

To illustrate, a person without a high school diploma averages $520 weekly, according to the Bureau of Labor Statistics. Maintaining a full year of income (which isn’t guaranteed for many without a diploma) amounts to around $27,040. In contrast, those who graduate high school earn a median weekly income of $712, totaling approximately $37,024 annually.

Moreover, high school dropouts face the highest unemployment rate in the U.S., registering at 6.5%. Comparatively, individuals with at least a high school diploma have an unemployment rate of 4.6%, against a national average of 3.8%. Hence, finishing high school remains one of the most reliable ways to achieve financial stability.

This perspective is echoed by Dave Thomas, who earned his GED at 61. He regarded leaving school without a diploma as a significant error and sought to discourage young people from following a similar path, despite his later success. (See also: 10 Surprising Ways a College Education Will Improve Your Life)

Investing all personal savings into a venture

High-profile entrepreneurs like Elon Musk, who invested funds from his PayPal sale into Tesla and SpaceX, and Sara Blakely, who risked her $5,000 savings to start Spanx, illustrate a trend where some have used their own money to kickstart their ventures. These narratives, combined with portrayals in films, might lead some to believe that personal investment is the key to entrepreneurial achievement.

However, this view overlooks the multitude of aspiring entrepreneurs who fail. Data reveals that 50% of new businesses close within five years, and only a third are operational after ten years. For every success story like Musk’s and Blakely’s, countless entrepreneurs have lost personal funds on ventures that did not succeed. (See also: 3 Ways to Fund Your Business Without Touching Savings)

Many of these determined business owners may possess solid ideas and just as much ambition, but without the right amount of luck or opportunity, they can end up declaring bankruptcy after pouring all of their finances into a failed business endeavor.

Relying heavily on credit cards

Novelist Lisa Scottoline faced challenges following her divorce shortly after the birth of her daughter. Wanting to dedicate time to raise her child, she transitioned from her demanding career as a trial lawyer to pursue writing legal thrillers. In doing so, Scottoline made a significant bet:

I financed my living expenses with credit. I had five credit cards with a limit of about $10,000 each. I convinced myself, ‘You have $50,000 to make your mark.’ Ultimately, I amassed $38,500 in debt, but shortly after returning to law for income, I sold my first book.

Scottoline’s choice to use credit cards paid off, leading to her impressive career as a bestselling author of nearly 40 books.

Nonetheless, while it might appeal to struggling artists, writers, and performers to mirror Scottoline’s approach of relying on credit in pursuit of their passions, this would be an imprudent strategy for most. It’s crucial to remember that Scottoline had a successful legal career to return to if her writing didn’t work out, which shielded her from falling into unmanageable debt—a safety net that many aspiring creatives lack. (See also: 6 Scary Facts About Credit Card Debt)

Wagering in casinos

Fred Smith, the founder of Federal Express (FedEx), owes a substantial portion of his current profits, totaling $4.4 billion, to a fortunate encounter at a blackjack table.

Smith launched the business in 1971 using an inheritance of $4 million, alongside $80 million in loans and equity. However, by 1973, FedEx found itself in financial peril. With funds dwindling to just $5,000, there wasn’t enough capital to fuel aircraft for the week. In a gamble, Smith decided to take that final amount to Las Vegas and play blackjack.

By chance, he won, transforming $5,000 into $27,000 to cover imminent fuel expenses. While this stroke of luck did not remedy all of FedEx’s financial struggles, Smith used it as a catalyst to seek additional funding.

It’s imperative to recognize that this is a reckless method of running a business. Smith’s luck allowed him to survive, but he easily could have lost everything. (See also: 6 Ways Greed Is Keeping You Poor)

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