Financial Success: Avoid these 8 Money Mistakes That Will Keep You Broke and Poor Forever
None wants to die poor. But we attract poverty day in and day out. As we continue doing this, we keep remaining poor and poorer hence building a situation called Financial Crisis- which is a major problem that is affecting many individuals in the current world due to poor management of money.
Therefore, in this article, we will be sharing some of the mistakes we should avoid so as to be financially stable.
One, never lend someone money you are not willing to lose. By the time you lend someone money, be content in your heart that in case the person fails to pay, it won't hurt you. You should not even lose the person's friendship if they fail to pay the money you lent them.
Two, Never append a signature to guarantee someone on financial matters if you are not willing or able to pay the money on their behalf. Many people have found themselves in trouble after those who were guaranteed failed to pay their loans.
Three, Never borrow money that accrues interest to start a business. In other words, never borrow money to start a business expecting that the business will generate enough income to back the borrowed money plus the interest.
Four, If you want to save, whenever you receive money, don't start spending hoping that you save the remainder. Normally, what remains is zero so long as money to spend is available, the numerous things to spend on it are still available. When money to spend is not available, we always find a way of doing without it. Before you spent money, put your savings aside and spent what is left after saving.
Five, Avoid keeping the money you don't intend to use in the short- term within easy reach. For example, don't walk with 20,000 in your pockets while you are planning to spend 5,000 since you may end up spending the whole amount.
Six, with all means, avoid spending money on items you can do without (at least for the time being). Before you pick money from your pocket or wallet, before paying for something ask yourself: what would happen if you don't buy that item? If you can live with the consequences of not having an item please smile and walk away.
Seven, you must evade spending all you earn or more than what you earn. It's like having a drum where you have an inlet that is smaller that than the outlet. It will never get full. If you do it the other way round and the inlet is bigger, it will get full and overflow. Hence we should ensure that we are widening the inlet and narrowing the outlet.
Lastly, If possible avoid mobile loans at all costs since they tend to have very high interest. Mobile loans are very addictive and should be avoided by all means.
In conclusion, we should embrace all the above mentioned, if we intend to end up being super-rich.