10 Money Mistakes
My Dad sent a list of 13 Money Mistakes we should avoid. I liked the list and decided to share it. However, I changed a few things on the list to fit my personal money beliefs. How many of these mistakes have you made? Let me know in the comments or hit me up on IG: @bykelechiwuaba or Twitter: @kelechiwuaba
Money Mistake 1
Never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest. Before you take debt out to start a business, test out the business to see if it can generate income on it's own.
Money Mistake 2
Never spend money you haven't received example using credit cards to pay for items before payday,
Money Mistakes 3
Spending money and saving after. If you want to save, don’t spend and hope to save the rest. Save first then spend. There is always soemthing to spend money on.
Money Mistake 4
When you get an opportunity to meet a very wealthy person, never ask for money. Ask questions and build a relationship.
Money Mistake 5
Keeping your seed instead of planting it. Many people stop at saving. It's very, very difficult to save and have all you need to maintain your lifestyle especially after retirement. When you save, your savings are seed; plant it. When you just keep the seed (saving money) some seeds begin to die (eaten by inflation and the like). Invest excess dollars, if you do not need money in the short term, that money must be invested.
Money Mistake 6
Never lend someone money you are not willing to lose. By the time you lend someone money, be contented in your heart that should the person fail to pay, you will not die. Especially to loved ones.
Money Mistake 7
Never co-sign for anyone. This one is tough but better safe than sorry
Money Mistake 8
Avoid keeping money you don't intend to use in the short-term within easy reach. For example your emergency fund should not be too easily accessible. There should be some level of difficulty to access the money.
Money Mistake 9
Consistently spending all you earn or more than you earn. It's like having a drum where you have an inlet that's smaller than the outlet. It will never get full. And should the inlet ever reduce significantly the drum will run dry. If you do it the other way round and the inlet is bigger, it will get full and even overflow. Hence, we have to always ensure we are widening the inlet while narrowing the outlet – all the time. Your side hustle comes in handy!
Money Mistake 10
Thinking about short-term only and forgetting about long-term or thinking about the long-term and forgetting about the short-term. For instance, Maryam was told that there's money in land. She saved money over a long period of time and bought 30 acres of land. Now she has the land but she is always broke. She is always complaining. She's disgruntled and she doesn't seem to see herself earning from the land in the near future. Now, let's ask ourselves: Having 30 acres of land and no money to feed your family or take a child to hospital, is that wealth or poverty? I think Maryam only looked at long-term needs and forgot that she has short-term needs that require money.