Once you have started handling money, it is the easiest task to squander away all that money. This is especially true when you have begun earning. You think you are self-sufficient but in reality, you would be committing serious financial mistakes that you will pay the price for in the future.
Want to know how you lose money? Read further.
Keeping up with the Joneses
There is a popular quote regardless of whoever said it “Too many people spend money they haven’t earned to buy things they don’t want to impress people they don’t like.” Just because the society follows a particular fashion, it doesn’t mean you should follow the trend too. Purchasing what you don’t need to impress someone you may not even like is foolish and a good way to lose money quickly. Stop trying to impress people who don’t care about you.
Not planning or budgeting
Many people are plain lazy and do not budget/plan their finances. This is a guaranteed way to lose money. They won’t know their income, expenses, savings, investments, and goals. They live aimlessly. They consider budgeting boring. They rather squander away all their monthly income and wait till the next month pay so that they can repeat the cycle. This is a surefire way to lose money quickly.
Another assured method to lose money is procrastination. “I will invest later”. “I will create and maintain a budget later”. These are ways you can avoid getting more money later on. Procrastination never helps, more so in the case of finance.
Relying upon other sources than self
“My children have to take care of me”, “Pension will take care of me, “Social Security is there!”. These are plain excuses. Firstly, with the decline of joint families and rise of nuclear families due to increasing opportunities for education and employment, your children may not be in a position to stay with you or you may not be in a position to go along with them. They might or might not like the idea of you living with them. Secondly, laws and regulations of the land are subject to change so you never know what changes will happen in the future. Lastly, you should not want to depend on other people including your children, relatives, friends, social security, and government.
These are some super ways you can lose money. By losing money, you essentially rob off your future self. For information on how to save and invest visit www.moneymindz.com or give a missed call to 022 6211 6588.
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