The first and biggest “wealth drain” is taxes.

Our tax system is designed to penalize hourly and salaried workers while rewarding entrepreneurs and business owners. Salaried workers pay taxes on a gross basis, while employers pay taxes on a net basis. To that end, most people think that the Fortune 500 companies are outperforming the little ones. Keep in mind that you don’t have to be a large company to get great tax benefits. Even new businesses get huge tax benefits. So instead of complaining, maybe you should run a business from your kitchen table.

To qualify for tax deductions in that business, the IRS says you must intend to make a profit. When that standard is met, you automatically qualify for dozens of tax deductions that you don’t get as an individual. Most losses and start-up expenses can be deducted from other income from your job (limits apply, so get a good business CPA to work with you). Keep in mind that no one else (not even your CPA or tax preparer) cares how much you pay in taxes, so it’s your job to understand how the system works and how to use it effectively.

Losing the opportunity for compound growth

Another set of huge wealth leaks are market losses on investment capital that you control. When a stock or real estate property drops significantly in value, it could take years to get back up to par. And, of course, there are no guarantees that you will return over the lifetime of your investment. The less capital you have invested, the less you can benefit from the power of compound growth.

If your money’s compounding curve is broken by market losses or early withdrawals, it has a huge effect on your ultimate wealth pool. For example, if you were offered a job that lasted only 36 days and had two pay plan options, which would you choose? (A) You could be paid $5,000 per day at the end of each day, for a total of $180,000. (2) Your second option is to get paid a hundred from Day One, but your payment will double each day, compound 100 percent, and be due at the end of those 36 days.

If you jumped to $180,000, you missed out on the power of true compounding of money. If your co-worker did the same job the penny made up, you wouldn’t be a millionaire. After 36 days… I’d be a filthy rich billionaire with a final paycheck of $343,597,384. Obviously, your investments won’t experience such rapid (or consistent) compound growth, but do the math: the power of the cap curve is strong over time, if you don’t break it with big losses (which you can’t always control) or withdrawals. (which you can).

Money Lost in Commissions and Interests to Banks and Financial Companies

The next massive drains of wealth we face are interest and fees paid to banks or finance companies. Money lending has been around for thousands of years, and any business model that has lasted that long is a winner for business. But when you’re on the lending side of the transaction, it’s a drain on wealth, especially if most of your borrowed money is spent on asset depreciation.

Now, people will tell you that if you can borrow cheap money and invest it in something that has a higher rate of return than the interest rate you’re paying, then you’re using leverage properly. That may be true, but those attempting such a move should be aware of the warnings. Try this simple exercise: Add up all the money you’ve paid in your lifetime in monthly payments. Then compare that total to the amount of money you’ve saved for retirement and see which is greater. (If you’re up for it, we’d love to hear your results in the comments section below.) Then think about how to be a lender and not a borrower.

Amortization of Vehicles and Other Major Assets

Another massive drain on wealth comes from the depreciation of cars, boats, equipment, appliances, and most other major assets we buy. Most people will lose more money on cars in their lifetime than they will save for retirement, not to mention all the other depreciated assets they will buy. But there is a way to make money from these items.

Think of your financial life as one big cake. Don’t be fooled by the old magic trick and focus solely on what happens to your slice of the pie (ie your investment gains or losses). Instead, pay attention to the whole pie and put a stop to your massive wealth leaks.