"10 Common Mistakes We make with MONEY"

[darkangel11]

The most common mistakes especially made by people who suddenly became wealthy is excessive spending. I know a number of rich people and they all say the same thing: make sure that things you buy will be working for you. Like if you really want to buy an expensive car, make sure it's a rare, vintage model. Something that won't lose value over time. The worst thing you can do is buy a Ferrari that will cost a fortune to maintain and every paint scratch will make a dent in your wallet.

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[Hipag]

So many mistake we make with money,  in that mistake we can not overcome, we always fall and we do it again, at the end we notice every mistakes but it's too late.

[ignatii]

There is no reason why a person must slave away to see a little profit. That is why residual income seems to be so popular.

[stepanovage]

Some people like to say it is impossible to get money for doing nothing, but that is not completely true. There are many passive opportunities available.

[sorokinan]

Most people start buying things on loans and EMI when they start earning. It completely takes over them in some time.

[AnnaJames12]

I see 6 and 10 are almost the same. If you are young, inconsistent in spending, not saving when you get a profit, do not learn more to invest, you will not have anything for later, during the winter, or when you retire.

[PETES]

saving money in the bank is also a mistake. whereas the bank will take interest for the money saved, why do we do that? should save money on better investment assets; such as gold or bitcoin.

Because of the belief that our money is safe in the banks which is true however it won't grow in significant value unlike if you invest it. Though not everyone is used to risk we still choose to save it at banks and don't mind if it grows or not, thus the high inflation rate will make the value lesser. More likely, our common mistake is that we didn't know how to diversify our savings.

[semes]

You listed the mistakes nicely, but people learn to make mistakes. For this reason, reading can also reduce the harm that can be experienced.

[lungu113]

We can use that mistakes as a stepping stone and a learning for us to become more mature and more knowledgeable.

[Gabali126]

We can use that mistakes as a stepping stone and a learning for us to become more mature and more knowledgeable.

I am trying to understand your point here. Are you suggesting that one makes the mistake in order to learn from it? I would prefer you don't let it happen at all in the first place. But if it does happen, you need to check your past so that you don't repeat it.

[Silberman]

Mistake 1: Never lend someone money you are not willing to loose. When you lend someone money, always assume you may never get it back. If you feel that after lending the money out you may not be able to survive with what is left with you, then simply don’t lend the person.

Mistake 2: Whenever you have the opportunity to meet a wealthy or an influential person, never you ask for money, but rather ask for ideas or ways which you can grow your own business. That will make you a more purposeful person.

Mistake 3: Never you spend money you haven’t received or expecting. In other words, do not buy anything on credit because Mr. A has promised you certain money, or that Mr. B will pay you the debt he owes you. It might make you to run into debts should the source fails to pay. I hope you understand this point.

Mistake 4: For proper saving, do not attempt to save what is left after spending, but rather spend what is left after saving. Like you already know, human wants are insatiable, as long as you have the money, you will always have something to buy. Also, never you keep any money you are not going to spend on short term handy or within easy reach. It is best to keep it safe away.

Mistake 5: Do not sign as a guarantor to anyone on financial matters unless you have enough or are willing to pay any misappropriation or money that may arise from the person’s misdeed. THIS IS VERY IMPORTANT. It can cause you problems.

Mistake 6: Do not consistently spend more than you earn or spend all that you earn. You may not have anything for the rainy days or at retirement.

Mistake 7: Do not spend more money on an item you can purchase same for less within the same neighborhood. It is not a wise spending.

Mistake 8: Never you borrow money that accrues interest to start a business. That will put you undue pressure as you will be working to service the debt and the accrued interest for a long period of time. It could be frustrating especially if things are not as perfect as you would have predicted.

Mistake 9: Do not starve your family or fail to take your child to the hospital SIMPLY because you want to save the money you have for the future. It might leave you in regrets.

Mistake 10: While it is good to save, it does not necessarily means you should save all the money you have. Learn to reinvest some so that it will yield more. It is like planting a seed or grain, nurturing and watering it to yield more fruits. This should be self-explanatory I think.

Which of these mistakes do you think people are guiltier of? Do you think there are other mistakes not included here? Please share your thoughts.

Mistakes number 1, 4 and 6 are really common, but the mistake number 6 is the one most people do not see until it is too late, people do not realize that life passes really fast, one day you are a young and healthy 20 year old and the next you are 60 and not so healthy anymore, people waste their youth not working as hard as they could thinking they can aways do it later, they do not understand the limitation of old age and that is why they do not save for their retirement.

Well, you have some point, when you are trying to spend more than you earn it could possibly lead you to a bad situation for example, when you want to retire already, but you don't have enough savings for yourself, because you actually think your earnings in working will long last but it's totally not.

The problem is that most people are short term thinkers and they do not realize that they need to plan for the future, most of the people that are well off later in life planned their life to reach that point in the future, and those that find themselves depending on their extended family and on welfare never planned for their future with the usual consequences of poverty later in life that comes with the lack of planning.

[Onecrypto18]

This sounds like the 10 commandments to me. I believe anyone that keeps these 10 commandments may be on his way to financial freedom.

[noah tall]

That is what exactly the number 10 mentions. Even though saving money is great just putting it aside somewhere is not a wise idea. You need to put it on something that yields some profit. Sitting at a bank your money becomes less valuable in time, money in itself devalues quickly with time.
You can put up like couple grand and not reinvest on anything because that is just couple thousand dollars but if you have a lot of money that can be put into stuff like indexes than you should do it, if you love greater returns for greater risks, you know how to get bitcoin

[Glyphotex]

I did make the mistake of borrowing some money to start a business. This didn't end well for me and my friend who did borrowed me. But we learn everyday and I learnt from my mistakes. Good thing my friend was understanding and let off the hook.

[melfwaz]

The most common mistakes especially made by people who suddenly became wealthy is excessive spending. I know a number of rich people and they all say the same thing: make sure that things you buy will be working for you. Like if you really want to buy an expensive car, make sure it's a rare, vintage model. Something that won't lose value over time. The worst thing you can do is buy a Ferrari that will cost a fortune to maintain and every paint scratch will make a dent in your wallet.

It is very much important to have a  good study about trading and specially where we are interested for trading. We cannot remain blind while investing money in bitcoin or any other crypto currency. No doubt that it is also important that we must have fully trust on our investment but still it is also important to do good study for investment.

[pokang13]

Why give someone money at all? It's a bankers ' business. They have lost their money many times and have many ways to claim debts. Individuals do not have such opportunities. It seems to me that point one needs to be replaced by the fact that doing their business in which you have experience and do not go to someone else's territory. You will always be defenseless there. Leave loans to bankers.

Not everyone is capable enough to borrow from a bank. There are a lot of requirements needed to borrow in a bank and those who don’t have collateral are deprived of the opportunity to borrow money. The sad part is that SMEs are sometimes forced to resort to borrowing from loan sharks even when they can’t afford it because they have no choice. I know that it’s a bad idea to lend money because there’s a huge chance that it won’t be returned but you can’t help but have some pity sometimes.
[/quote

Everyone is capable of using money unwisely.Here are some pitfalls of using money unwisely.
1.Not making a budget
2.Spending it unwisely
3.Not saving
4.Investing in unsecured company or business
5.Using credit cards unwisely
6.Spending too much
7.Lending someone who does not pay
8.Buying expensive things
9. Not careful with scam
10.Not investing bitcoin

[Pattart]

Mistake 6: Do not consistently spend more than you earn or spend all that you earn. You may not have anything for the rainy days or at retirement.

I am in favor for this mistake which is common for everyone. We should learn how to handle our money for the future. At least, we had already know the common mistake in handling money? Then we should avoid this mistake will happen.

I think this is a mistake that is being made by a lot of people in my country, of the people I know almost no one saves, they spend everything they have and most of the time even more and the worst part is that the additional money comes from credit cards and then they just make the minimum payments which is a terrible idea since you are basically just throwing your money away since it is impossible to pay your debt that way.

Saving money is also not a good idea, because there are some market processes like inflation rate, which will "eat" your savings each year. So, you can invest this money in low-risk asset,for example, a bank deposit.

I think saving all the money in the deposit bank is also a mistake because fiat is also vulnerable to inflation, if you want to avoid
inflation then you have to save your money on gold or silver. the price will remain stable and not affected inflation

[snaper14]

as I see so many millionaires are investing only in property by buying a house and renting it for a passive income which won`t have the break even point for more than 30 years, instead of opening new businesses with more jobs and opportunities for everyone.

[sublime5447]

Why give someone money at all? It's a bankers ' business. They have lost their money many times and have many ways to claim debts. Individuals do not have such opportunities. It seems to me that point one needs to be replaced by the fact that doing their business in which you have experience and do not go to someone else's territory. You will always be defenseless there. Leave loans to bankers.

Not everyone is capable enough to borrow from a bank. There are a lot of requirements needed to borrow in a bank and those who don’t have collateral are deprived of the opportunity to borrow money. The sad part is that SMEs are sometimes forced to resort to borrowing from loan sharks even when they can’t afford it because they have no choice. I know that it’s a bad idea to lend money because there’s a huge chance that it won’t be returned but you can’t help but have some pity sometimes.

Yes because the requirements for loan from the bank is too difficult especially for people who don’t have a high guarantee value surely the banks will refuse to provide the loan, whether you want it or not we go to the loan shark to borrow with interest greater than the bank.

[Ezenwanyi1]

Buying what we dont need to impress others who give no fuck about us.

Spending more than our net income.
Buying on credit.
Living a life that is fake to impress others.