Hello steemians, am here to share with you an aspect of life that I feel should be treated with all wisdom and experiences i have had in the past towards financial management. I hope it will help someone out there.
Money Mistake 1
Never borrow money that accrues interest to start a business . That is to say, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.
Money Mistake 2
Never spend money you haven't received. Don't even promise someone money based on a promise you have from someone else. If someone tells you: "Desmond , come to my office tomorrow at 9am and pick #50 thousand "don't go out to buy items on credit based on this promise, with the hope that you will pay off your creditor when the promised money comes; it may not come as promised and this will leave you in problems with your creditors.
Money Mistakes 3
If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains. Normally what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their 'relatives' so that you spend even more than you had planned. When money to spend is not available, we naturally find a way of doing without it. That's why I've learnt to save with an INVESTMENT CLUB. Once I send money there I assume I no longer have it. Before you spend any money, put your savings aside then spend what is left after saving. Human needs and wants are insatiable, always remember that!
Money Mistake 4
When you get an opportunity to meet a very wealthy person, never ask for money. Ask for ideas on how to make money. It's better to learn how to fish than to keep begging for fish. They may even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your aim. Same applies to steemit, don't beg whales to upvote you, instead, share your ideas with them or ask them to share theirs with you.
Money Mistake 5
Keeping your seed instead of planting it. Many people stop at saving. It's very, very difficult to save and have all you need to maintain your lifestyle especially after retirement. When you save, your savings are seed; plant it. When you just keep the seed (saving money) some seeds begin to die (eaten by inflation and the like). That's why I recommend that you read about the different types of investment vehicles you can use to grow your savings. I am not necessarily talking about putting the money in a business, because you can easily lose money in business. I am talking about putting it in an investment.
Money Mistake 6
Never lend someone money you are not willing to lose. By the time you lend someone money, be contented in your heart that should the person fail to pay, you will not die. You should not even lose that person's friendship if they fail to repay the money you lent them. If you feel the person might fail to pay you and this will not affect your relationship with them, then lend them money. If their failure to pay would make you hate this person’s entire clan, please advise the person to go to the bank.
Money Mistake 7
Never append your signature to guarantee someone on a financial matter if you are not willing or able to pay the money on their behalf. Do I have to explain that one? No, it's self-explanatory. Always read the document before you sign them.
Money Mistake 8
Avoid keeping money you don't intend to use in the short-term within easy reach. For instance, don’t walk with #100 thousand in your pocket when all you plan to do in a day costs #20 thousand. Like I mentioned in Money Mistake 3, there are always expenses available to gobble any money that is within reach, so if you don't want to lose it, put it away in a safe place.
Money Mistake 9
Avoid keeping money in inappropriate places e.g. in socks, under the pillow, in a pit, in the sitting room, in the bra, in a travel bag that you will place somewhere in a bus ... impulse buying is a devil that will keep you busy, instead, why not have a box opened at one end with a tiny hole, where you could squeeze in those little little cash you feel are worthless like your 5naira and 10naira?i think that's better.
Money Mistake 10
Spending money on an item that you can do without (at least for the time being). These days when I pick money from my pocket or wallet, before paying for something I ask myself: What would happen if I didn’t buy this? If I find I can live with the consequences of not having that thing, I smile and walk away.
Money Mistake 11
Paying an amount for something that's not the minimum you can get that same value for. In other words, if you are along east Legon road and you pay #5K for a shoe that you can get at #3K at Makola market, that's a money mistake except for those who have achieved financial freedom.
Money Mistake 12:
Thinking about short-term only and forgetting about long-term or thinking about the long-term and forgetting about the short-term. For instance, Desmond was told that there's money in having land properties or assets . He saved money over a long period of time and bought 50 plots of land. Now he has the land but he is always broke and complaining. He doesn't seem to see himself earning from the land in the near future. Now, let me ask: Having 50 plots of land and no money to feed your family or take care of your personal needs, is that wealth or poverty? I think Desmond only looked at long-term needs and forgot that he has short-term needs that require money. Another scenario is someone that spends all his salary on short term needs without keeping some for investments that will serve him on the long run. So I bring to you a simple principle called " the save/expenditure /investment equity". This principle says, there should be a balance between the three, that is when you have a salary of 120 thousand, savings should take 40 thousand, as well as expenditure and investment. A shift in this balance can disrupt your financial management.
Let’s take stock of our finances. How many errors are you guilty of? Do you now feel enlightened to do better with these tips? Share your thoughts in the comment section below.
Good luck, savers! resteem this knowledge with your friends because it will not benefit you if you are selfish with it.
God bless you as you work on your financial prudence
