#STEEMGIGS: TIL Challenge. Today I learnt to be prudent financially. My entry.
As usual today I was just online doing my research when something striking caught my attention and I decided to carefully put together an article relating to it.
I learnt that if all this are put to work, our financial challenges will be less
1. I realized that borrowing money that accrues interest to start a business is not healthy. It is too risky to borrow money to start a business thinking that the business will generate profit. What if you didn't meet up? You might just loose everything. Always start with the little capital you have, there is nothing wrong with starting small.
2. Don't promise someone money based on money you are expecting, DO NOT spend money you haven't received. If someone promise to send you money in even 1hr time, don't go shopping on credit based on that promise. What if it doesn't come as promised? This may put you in serious debt.
3. Save before you spend not after expenses because sure that money will finish before you know it. As long as the money is available, things to spend on will be much more available. Man is insatiable, when the money is available things to spend on will be numerous. when money to spend is unavailable, naturally we find a way of coping without it, beforeyou spend anything put your savings aside.
If opportunity comes your way to be close to a wealthy person Do not ask for money, let getting money from them never be an objective instead ask for ideas or tell him/her your ideas. Wealthy people loves those who have good business ideas.
4. DO NOT KEEP YOUR SEED, PLANT IT. I know at this age and time so many invest more than they save which is a very wise move, but I will still say this when you stop at saving you are keeping your seed instead of planting it. When you just keep the seed (saving your money) they begin to die with time, they are eaten by inflation and the likes. You don't have to put the money in a business, investing it will be a very wise decision.
5. When you lend money be sure that you don't afford to loose it, lend money you can let go of. Do not loose someone's friendship because of money you lent them, if their failure to repay will make you loose their friendship please do not make the attempt.
6. Never stand as a guarantor for someone on a financial matter, only do such when you know you can pay the money on their behalf.
7. Avoid impulse buying, only keep little money for such purpose. Always make list when you want to go shopping. I think this is self explanatory.
8. Before you pick money from your pocket to pay for something, ask yourself what will happen if i didn't buy it? Do not spend money on things that you won't be needing for the time being.
9. Paying an extra amount for something you know you can get at a minimum prize elsewhere is not right. Be patient a enough to get it at a discounted rate.
10. Do not spend all syou earn, cut down your expenses. Hence, we have to always widen the inlet and narrow the outlet.
11. In your investment decisions, think long term and short term. Make sure the equation is balanced. Don't make a long term investment and end up being broke today and do not make a short term investment and end up being broke tomorrow.
I hope you learn some lessons from what I learnt today.