Simple Financial Mistakes to Avoid
I really think that when it comes to finance, there is no one who is an expert in methods of handling it, and the reason for this statement is not far-fetched- I do not know if this has happened to you or maybe someone close to you, but sometimes we work so hard to get a certain amount of money and before we realize, the money is all gone without a proper record of what exactly we have used the money for, the sad reality is that a lot of people have turned this into an habit, they work so hard to earn little money and they spend it faster than they can even realize what the money has been used for and when there is no money to spend anymore, they move straight into getting into more and even more debts.
Finance is a major tool for success and failure in life and we really need to understand how to properly utilize it if we plan to attain financial liberty one day. Certain mistakes tend to hold us back and prevent us from achieving a financial level and because money is very powerful, we mostly change the direction we think when we have it.
The proper way to minimize financial wastage.
A regular financial record is a very good way to help everyone and anyone understand how they use their finance, when you have a record on how much you spend on various things, it gives you adequate knowledge on the direction your finance and moving and the expenses you need to cut almost immediately.
Interestingly, the value of money is not recorded according to the amount you make, rather it is recorded according to the way you use the money made. Let’s say, a man makes $2,000 on a monthly basis from his real estate franchise and he spends all of it as he makes them, then another man makes $500 on a monthly basis but he decides to re-invest $400 and manage $100 for his upkeep. After five years when the financial attainment of the both men are studied, the man who makes $500 will be more financially successful since he has learnt the secret behind financial achievement.
The idea of unnecessary competition, trying to buy exactly what your neighbour or friend is buying ruins so many family’s finance very fast, when it comes to getting your finance to a high and profitable level, you have to ignore the act of competing with others. The neighbour you are trying to copy his standard of living, might be making on a monthly basis ten times above your monthly salary.
You said it all. Be yourself is my principle. I dont competite with any body. I do what am equal to.
I like that, the best thing is to belief in yourself rather than competing with others.
@ajewa first of all very nice article, we have to learn from our mistake in financial management other wise in future we have to face consciousnesses.
Absolutely, a person that fails to improve himself will find it difficult to achieve financial stability.
Good planning is essential to avoid losing capital and follow a successful path, excellent post.
When we plan well we attain better goals.
I appreciate your beautiful comment.
I tell my friends all the time that the value of wealth acquisition is not based on the value of our earnings so instead of focusing our attention on the amount we earn, we should better fix our attention on using it wisely.
Wise spending is a good trick to gather wealth confidently.