INTRODUCTION
Experience they say is the best teacher. Money is beautiful and one of the biggest desires of humans is to be reasonably rich.
To attain financial freedom, along the way, we must have lost money in one way or the other.
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- To lose money is not a crime, but it'll be better you know how not to lose money. This will boost your financial IQ and make you wiser financially.
5 MONEY MISTAKES WE OFTEN MAKE
If you can apply these tips, you'll be able to save yourself from the hurt that comes when you lose money, boost your MONEY IQ and save yourself from making mistakes that will hinder your chances of making more money.
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Money Mistake 1
Never borrow money that accrues interest to start a business . That is to say, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.
- You may end up paying credit for years to come and indirectly be helping the bank to make more money.
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Money Mistake 2
If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains. Normally what remains is zero because as long as money to spend is available, the numerous things you can spend it on are also available. And things to spend on even incite their 'relatives' so that you spend even more than you had planned.
When money to spend is not available, we naturally find a way of doing without it.
- Before you spend any money, put your savings aside then spend what is left after saving.
Money Mistake 3
When you get an opportunity to meet a very wealthy person, never ask for money. Ask for ideas on how to make money. They may even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your objective.
Money Mistake 4
Keeping your seed instead of planting it is a waste of opportunities.
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).
That's why I recommend that you read about the different types of investment vehicles you can use to grow your savings. I am not necessarily talking about putting the money in a business, because you can easily lose money in business. I am talking about putting it in an investment.
Money Mistake 5
Never lend someone money you are not willing to lose.
When you lend someone money, be contented in your heart that should the person fail to pay, you will not die. You should not even lose that person's friendship if they fail to repay the money you lent them. If you feel the person might fail to pay you and this will not affect your relationship with them, then lend them money.
If their failure to pay would make you hate this person’s entire clan, please advise the person to go to the bank or better still give them what you feel you can without any pressure..
CONCLUSION
In a multitude of counsel, there's safety.. These rules will help you from making same mistakes