Avoiding Mistakes with Money
“There are three ways to learn, the hard way, when you learn from your own mistakes, the easy way, when you learn from the mistakes of others, or the tragic way, you never learn and keep making the same mistakes over and over again.”-Brian Houston, Australian televangelist.
Making mistakes with your finances will be very costly. Here are some of the main ones to avoid.
Mistake number one-Spending everything you make
This is a common mistake made by too many people. You can by living within your means and still making this mistake. It is when an unexpected bill arrives that causes a lot of financial pain in households. Having some kind of emergency fund and a savings for the future fund will have you better prepared for financial shocks.
Mistake number two-Not investing
Not investing any of your savings is a common financial mistake made by financially illiterate people. There are lots of opportunities to sow into your financial future. Joining your country’s retirement scheme is a must do. New Zealand and the United States retirement schemes have their own incentives to encourage members to contribute; make use of these. Share market platforms such as Sharesies in New Zealand and Robinhood in the United States enable investors to drip-feed money into the markets.
Mistake number three-Not joining your country’s retirement scheme
This is a mistake which I have seen too often and this mistake is usually made with some kind of excuse. In most cases it is not a mistake but rather a choice; one which is going to cause problems later on in life. Most countries have their own retirement scheme and it is up to you to join whichever country you belong to.
Mistake number four-Unwilling to become financially literate
There is really no excuse for not being financially literate with so much material of a financial nature being available on and offline. Much of it is written in an easy to read format. Your local library will contain books which are useful. The internet has a lot of information available. If you have any questions then ask google or chatgpt and see what comes up.
Mistake number five-Not taking responsible for your own finances
Some people like to blame others for their own mistakes instead of taking responsibility for them. Take advice then make your own decisions. Once a decision has been made, take responsibility for them.
Mistake number six-Hanging out with the wrong crowd
Spending too much time with the wrong people will hinder you in life. They will have some kind of influence on your lifestyle and this in turn will affect the decisions you make. You need to spend time with intellectually stimulating people. You are the average of the five people you spend most of your time with.
Mistake number seven-Impatience with money
Developing your own financial strategy requires patience. Those who are impatient will seek shortcuts such as playing the lottery or some other get rich quick scheme. AS a result many people lose a lot of money in their attempts to make a lot of money in a short time. The Share market is a long term game and requires patience.
Matter of choice
What you do with your money is a matter of choice and all of the mistakes in this article can be described as such. You make your choices and your choices make you.
About this article: This article is of the experience of the writer and may not be applicable to your own personal circumstances.
www.robertastewart.com
