They say God made the man, man made money then money made man mad. There could never be a truer statement. Everyone is looking for money. There is no living without funding. The way our world is set up, money is the means to all our ends. Despite everything, people still make many money mistakes. We work hard, make our money and somewhere in the process we get too excited and spend all our money carelessly. Then, the process begins again. So what are these horrendous mistakes, even the smartest people are guilty of?
1. Buying bad-quality products
I recently decided to reorganize my living room, and I was surprised at the number of spoiled headphones I had. We all have that one thing we keep spending our money on without realizing how much less we would have saved if we just decided to buy good quality ones. A lot of people fall into this trap, since they would rather pay less for anything.
Never compromise quality for the sake of “saving”, since you would be forced to buy the same things again when they die on you weeks later. This philosophy can also be applied to property. A cheap sale should be fishy, since it hints that the property is likely keeping some dirty secrets. For great properties worth the price, you can buy a condo and save time when you use Zipmatch.
When we hear about sales we all but line up and camp outside stores to get the best of everything at a low price. Sales are supposed to save our money, right? You'll be surprised at the amount of useless things people buy because they are on sale. We waste our money on tacky and ugly little things that not only leave our pockets empty, but also leave us guilty. So the next time you're lining up outside a store on sale, think critically about what you need before going on a shopping rampage.
3. Spend first, save later
This practice is a common money mistake that a lot of people make. Always keep in mind, you will never have enough money to spend. If you spend your money first to save whatever remains, you will never have money to save. If you know what's right for you and your future, set aside the money you wanted to save first, then make due with whatever you have left.
4. Credit purchase
A famous Swahili proverb says ‘the only medicine to a debt is payment.' Every time you get something on credit, you have lesser money in future. Once you get used to credit cards, you automatically become enslaved to a system. You will be tirelessly working in the present to pay for things enjoyed in the past. So where does that place your future?
5. Lack of emergency preparation
Have you ever woken up to a day from hell? You hit someone's bumper in the parking lot or your car breaks down on your way to work? Either you commute for days or call the mechanic immediately; either way would cost you more than you expected. What if you had an account that stayed untouched just for this kind of days? That would be a relief, right? Well, why are you not saving up for emergencies, then?
There is a thrill to be spontaneous and experiencing the finer things in life. However, you should also set aside a fund for the future, whatever it may hold for you. Even if you lose your job or acquire other financial responsibilities, you would still be stable enough to stand up and avoid falling into bankruptcy.
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