SOME MONEY MiSTAKES WE MUST AVOID!!!
*Money Mistake 1*
Never borrow cash that accrues curiosity to start out a enterprise . That is to say, by no means borrow cash to start out a enterprise anticipating that the enterprise will generate earnings to pay again the borrowed cash plus the curiosity.
*Money Mistake 2*
Never spend cash you have not acquired. Don’t even promise somebody cash based mostly on a promise you could have from another person. If somebody tells you: “Ezra, come to my office tomorrow at 9am and pick #30K”do not exit to purchase gadgets on credit score based mostly on this promise, with the hope that you’ll repay your creditor when the promised cash comes; it might not come as promised and it will go away you in issues together with your collectors.
*Money Mistakes 3*
If you wish to save, everytime you obtain cash, don’t begin spending hoping that you just’ll save what stays. Normally what stays is zero as a result of so long as cash to spend is offered, the quite a few issues you possibly can spend it on are additionally out there. And issues to spend on even incite their ‘family’ so that you just spend much more than you had deliberate. When cash to spend just isn’t out there, we naturally discover a approach of doing with out it. That’s why I’ve learnt to avoid wasting with an INVESTMENT CLUB. Once I ship cash there I assume I not have it. Before you spend any cash, put your financial savings apart then spend what’s left after saving.
*Money Mistake 4*
When you get a possibility to fulfill a really rich individual, by no means ask for cash. Ask for concepts on the best way to make cash. They might even select to provide you cash on their very own after seeing that your concepts are nice, however let getting cash from them by no means be your goal.
*Money Mistake 5*
Keeping your seed as an alternative of planting it. Many folks cease at saving. It’s very, very tough to avoid wasting and have all you should preserve your way of life particularly after retirement. When you save, your financial savings are seed; plant it. When you simply preserve the seed (saving cash) some seeds start to die (eaten by inflation and the like). That’s why I like to recommend that you just learn in regards to the several types of funding automobiles you should utilize to develop your financial savings. I’m not essentially speaking about placing the cash in a enterprise, as a result of you possibly can simply lose cash in enterprise. I’m speaking about placing it in an funding.
*Money Mistake 6*
Never lend somebody cash you aren’t prepared to lose. By the time you lend somebody cash, be contented in your coronary heart that ought to the individual fail to pay, you’ll not die. You mustn’t even lose that individual’s friendship in the event that they fail to repay the cash you lent them. If you’re feeling the individual would possibly fail to pay you and this is not going to have an effect on your relationship with them, then lend them cash. If their failure to pay would make you hate this individual’s complete clan, please advise the individual to go to the financial institution.
*Money Mistake 7*
Never append your signature to ensure somebody on a monetary matter in case you are not prepared or in a position to pay the cash on their behalf. Do I’ve to clarify that one? No, it is self-explanatory.
*Money Mistake 8*
Avoid preserving cash you do not intend to make use of within the short-term inside simple attain. For occasion, don’t stroll with #100K in your pocket when all you intend to do in a day prices #20K. Like I discussed in Money Mistake 3, there are at all times bills out there to gobble any cash that’s inside attain, so should you do not wish to lose it, put it away in a secure place.
*Money Mistake 9*
Avoid preserving cash in inappropriate locations e.g. in socks, below the pillow, in a pit, within the sitting room, within the bra, in a journey bag that you’ll place someplace in a bus … impulse shopping for is a satan that may preserve you busy!
*Money Mistake 10*
Spending cash on an merchandise that you are able to do with out (a minimum of in the intervening time). These days after I decide cash from my pocket or pockets, earlier than paying for one thing I ask myself: What would occur if I didn’t purchase this? If I discover I can reside with the results of not having that factor, I smile and stroll away.
*Money Mistake 11*
Paying an quantity for one thing that is not the minimal you may get that very same worth for. In different phrases, in case you are alongside east Legon highway and also you pay #5K for a shoe that you would be able to get at #3K at Makola market, that is a cash mistake besides for individuals who have achieved monetary freedom.
*Money Mistake 12:*
Consistently spending all you earn or greater than you earn. It’s like having a drum the place you could have an inlet that is smaller than the outlet. It won’t ever get full. And ought to the inlet ever scale back considerably the drum will run dry. If you do it the opposite approach spherical and the inlet is greater, it should get full and even overflow. Hence, we now have to at all times guarantee we’re widening the inlet whereas narrowing the outlet – on a regular basis. Your aspect hustle is useful!
*Money Mistake 13:*
Thinking about short-term solely and forgetting about long-term or desirous about the long-term and forgetting in regards to the short-term. For occasion, Lydia was advised that there is cash in land. She saved cash over a protracted time frame and acquired 30 acres of land. Now she has the land however she is at all times broke. She is at all times complaining. She’s disgruntled and he or she does not appear to see herself incomes from the land within the close to future. Now, let’s ask ourselves: Having 30 acres of land and no cash to feed your loved ones or take a baby to hospital, is that wealth or poverty? I feel Lydia solely checked out long-term wants and forgot that she has short-term wants that require cash. What of those that discover they’re one paycheck away from wage? Are they desirous about the long-term wants?
Let’s take inventory of our funds. How many errors are you responsible of? Do you now really feel better-equipped to do higher with the following pointers? Good luck, savers! Share this information with your pals as a result of it is not going to profit you in case you are egocentric with it.
God bless you as you’re employed in your monetary prudence.
