13 MONEY MISTAKES YOU MUST KNOW

13 MONEY MISTAKES!

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 u haven't received. Don't even promise someone money based on a promise u’ve from someone else. If someone tells u: "Jones, come to my office tomorrow at 9am & pick 30K "don't go out to buy items on credit based on this promise, with the hope that u’ll pay off ur creditor when the promised money comes; it may not come as promised & this will leave u in problems with ur creditors.

Money Mistakes #3.

If u want to save, whenever u receive money, don’t start spending hoping that u’ll save what remains. Normally what remains is zero b’cos as long as money to spend is available, the numerous things u can spend it on are also available. And things to spend on even incite their 'relatives' so that u spend even more than u had planned. When money to spend is not available, we naturally find a way of doing without it. Before u spend any money, put ur savings aside then spend what is left after saving.

Money Mistake #4.

When u get an opportunity to meet a very wealthy person, never ask for money. Ask for ideas on how to make money. They may even choose to give u money on their own after seeing that ur ideas are great, but let getting money from them never be ur objective.

Money Mistake #5.

Keeping ur seed instead of planting it. Many people stop at saving. It's very, very difficult to save & have all u need to maintain ur lifestyle especially after retirement. When u save, ur savings are seeds; plant it. When u just keep the seed (saving money) some seeds begin to die (eaten by inflation & the like). That's why I recommend that u read about the different types of investment vehicles u can use to grow ur savings. I am not necessarily talking about putting the money in a business, b’cos u can easily lose money in business. I am talking about putting it in an investment.

Money Mistake #6.

Never lend someone money u’re not willing to lose. By the time u lend someone money, be contented in ur heart that should the person fail to pay, u’ll not die. U should not even lose that person's friendship if they fail to repay the money u lent them. If u feel the person might fail to pay u & this will not affect ur relationship with them, then lend them money. If their failure to pay would make u hate this person’s entire clan, pls advise the person to go to the bank.

Money Mistake #7.

Never append ur signature to guarantee someone on a financial matter if u’re not willing or able to pay the money on their behalf. Do I’ve to explain that one? No, it's self-explanatory.

Money Mistake #8.

Avoid keeping money u don't intend to use in the short-term within easy reach. For instance, don’t walk with 50k in ur pocket when all u plan to do in a day costs 10k. Like I mentioned in Money Mistake #3, there are always expenses available to gobble any money that is within reach, so if u 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 u’ll place somewhere in a bus... impulse buying is a devil that will keep u busy!

Money Mistake #10.

Spending money on an item that u 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 & walk away.

*Money Mistake #11.

Paying an amount for something that's not the minimum u can get that same value for. that's a money mistake except for those who have achieved financial freedom.

Money Mistake #12.

Consistently spending all u earn or more than u earn. It's like having a drum where u’ve an inlet that's smaller than the outlet. It will never get full. And should the inlet ever reduce significantly the drum will run dry. If u do it the other way round & the inlet is bigger, it will get full & even overflow. Hence, we’ve to always ensure we’re widening the inlet while narrowing the outlet – all the time. Ur side hustle comes in handy!

Money Mistake #13.

Thinking about short-term only & forgetting about long-term or thinking about the long-term & forgetting about the short-term. For instance, Mary was told that there's money in land. She saved money over a long period of time & bought 30 acres of land. Now she has the land but she is always broke. She is always complaining. She's disgruntled & she doesn't seem to see herself earning from the land in the near future. Now, let's ask ourselves: Having 30 acres of land & no money to feed ur family or take a child to hospital, is that wealth or poverty? I think Mary only looked at long-term needs & forgot that she has short-term needs that require money. What of those who find they’re one paycheck away from salary? Are they thinking about the long-term needs?

Let’s take stock of our finances. How many mistakes are u guilty of? Do u now feel better-equipped to do better with these tips? Good for u, savers!

God bless u richly as u work on ur financial prudence as we match on forward in 2018!

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