25 Money Mistakes, there is a high probability that more than 95% of people do because, in our education system, we do not get the financial education that’s why we indirectly or directly make mistakes. If you found any of the mistakes that you are doing so I highly suggest stopping right now so that you can live your life in a healthy manner.
Contents
- 1 25. Not understanding money
- 2 24. Saving later mindset
- 3 23. Lack of financial knowledge
- 4 22. Not saving for future
- 5 21. Lack of listing
- 6 20. Not telling your financial plan with family
- 7 19. Lack of budgeting
- 8 18. Spending too much on marriage
- 9 17. Only Saving
- 10 16. Investing in FD
- 11 15. Ignoring inflation
- 12 14. Buying liabilities
- 13 13. Not having a proper investing plan
- 14 12. Saving a small amount and spending a large amount
- 15 11. Not knowing the power of compounding
- 16 10. Spending before earning
- 17 09. Not analyzing expenses
- 18 08. Increasing income with salary
- 19 07. Unmanaged expenses
- 20 06. Not having an emergency fund
- 21 05. Don’t do gambling
- 22 04. Enjoying borrowed money
- 23 03. Not Investing
- 24 02. Show off
- 25 01. Bank account passwords not shared with family
25. Not understanding money
Many people think that money is just for buying something and spending that’s it no dear. There are lots of use of money in a wise manner such as saving, investing and if you have some amount of extra money you can do charity too.
24. Saving later mindset
Many people think that once they get the salary they will save money in the end. This is absolutely wrong mindset let me conclude with a formula income – expense = saving more than 95% of people follow this which is wrong. Change the formula income – saving = expense try to implement this formula in your life trust me guys you will be thankful for that really not kidding just try it once and let me know in the comment section.
23. Lack of financial knowledge
Listen if you don’t understand the financial game you are going to be way behind then other successful people because irrespective of your background you need to understand financial knowledge if you are someone who deals with money daily. I think everyone deals with money right? We have to get knowledge about finance so that we can do better in terms of the money game.
22. Not saving for future
Yeah, I know that you got one life but that doesn’t mean that you will spend your hard earn money in one day or on one trip or anything else you need to have a practical and realistic approach to your life so that you can also save a little bit for your future.
21. Lack of listing
If you know that you go shopping and you purchase things that you had not thought of before you get out for the market try to list down things that you have to buy also do respect yourself at least and stick to that, my friend. No one is giving you extra money for unwanted so-called items that you buy most of the time because you still have some money left in your wallet.
20. Not telling your financial plan with family
If you are doing a good amount of investment for your family and doing a sort of financial plan for your family so try to share with your family so that they too can corporate with you and will understand money more.
19. Lack of budgeting
Seriously if you are not going to make a budget you are not going to achieve your financial freedom. So do make a budget if you don’t know how to make a budget I had written an article so that everyone can easily make a budget you can go and check it out if you want so let’s get back to the topic budgeting is very important and it’s very simple to make seriously.
18. Spending too much on marriage
🤐 Should I say something I have a question for each and every parent who saves everything for a better future for the child so why do they put all their saving on weddings seriously the big? Are you saving everything to spend on your son or daughter’s marriage? This is not a good move if you ask any financial advisor trust me or not.
If you think that you should do it but before you should have that much amount left in your bank for the future then you can spend on your daughter or son, wedding. I know it’s personal agreed with you but what about your child’s future? If you have lots of money in your account go with that but don’t bankrupt yourself in wedding because there is life after the wedding you need to see to it that also.
Don’t mind but you too getting what I am saying.
17. Only Saving
Don’t rely only on saving my friend. Because if you know a little bit about finance then you will know that after a long time, your money loses its power so if you buy something for $5 after a year same thing it will cost much more than 5$. So that’s why don’t rely only on saving.
16. Investing in FD
Investing in FD?? We do invest for the purpose to grow money right tell me one thing what is the interest 3-6% normally wait after deducting the tax how much you will get you calculate on your own. My dear friend tell me what is the inflation rate in our country around 5 to 6% ok. If you compare fd with inflation okay so now you tell me it is a good option to invest in that so-called FD.
15. Ignoring inflation
Don’t ignore inflation my dear friend ignoring inflation can destroy your sleep seriously because if you are getting something today after a couple of years from now you will not get the same thing at the same rate this is what inflation is.
14. Buying liabilities
You too will agree after this point. Liabilities are something that takes money from your pocket and you buy 9/10 things. So try to avoid it. Instead, buy assets. What are assets? Something which puts money into your pocket.
13. Not having a proper investing plan
Do have a proper investment plan seriously if you are just blindly following anyone you are going to lose all your money seriously investing is very simple and very easy but if you don’t understand the game of investing you are definitely to lose your money in the future. So know the difference between investing versus gambling.
12. Saving a small amount and spending a large amount
We had seen this point above wedding? I think you got it right now so let’s take another example many people have the habit of saving small amounts on traveling or anything. But, as soon as they purchase any electronics they will end up spending more amounts than they had saved what’s the use, my friend?
11. Not knowing the power of compounding
Power of compounding trusts me guys this is amazing and superb if you know how the power of compounding works you will start investing from today onwards. You can check out this article on the power of compound this guy has fully explained it.
10. Spending before earning
Well, why do you know if you are getting your payment on that day so why should you put yourself in debt? Do you feel bad or what if you have a good amount of money in your account? No then why did you do this don’t do this mistake again. If you do this you can’t live healthy life with this approach.
09. Not analyzing expenses
If you track your expenses you yourself will know what things you are doing wrong after that you will stop doing that mistake again and again. If possible you can track your expenses every week.
08. Increasing income with salary
Stop it if your salary is increasing so why do you have to increase your expenses? If you do this I am giving you the best idea that you can implement as soon as you get your payment, first of all, you will put that extra amount into investing so that you will left with the previous salary amount and then you can do your expenses. So like this, you can save more money.
07. Unmanaged expenses
The discount on a pizza in the shopping mall or anytime outing will put you in danger in financial terms so manage yourself. It’s okay to have some amount of money in your bank account😜
06. Not having an emergency fund
Well, in this pandemic all people understand the power of an emergency fund. Ideally suggested that one should have at least a 6-12 month emergency fund if you don’t know about emergency funds watch this video.
05. Don’t do gambling
You do really hard work day and night never know when you will get into the urgency of that amount which you had lost in that gambling so I highly recommend you to stop doing this if you do. If you do not do well and good. But if you do gambling I am giving you a suggestion if you think that if you feel like doing gambling instead give that money to a needy person I am sure you will feel happy after helping that person.
04. Enjoying borrowed money
Hey… What’s this buddy you can’t do this stupidity. Don’t do seriously are you kidding about what you are doing you can’t make this mistake again and again. Stop this now if you are doing this mistake.
03. Not Investing
Invest invest invest how many times you had heard it and if you had heard it why didn’t you get started with that you know the advantage of investing so why you had not invested? You don’t have enough money right tell me if you had not had your one burger extra if you had not done that one Netflix subscription extra if you had not done that one shopping etc I think you had made your investment way back I think you got it what I am trying to say. So start investing my dear friend it’s beneficial for you not for me.
02. Show off
This is a trap where many people get into that and they are now nowhere. I don’t think your happiness is too cheap that needs anyone’s attraction listen again and think on this topic.
You don’t know what will happen tomorrow so for security purposes just share with your family to avoid any financial problems.