4 COMMON MISTAKES PEOPLE MADE WITH THEIR FINANCES IN THE PAST YEARS

[Gormicsta]

Hello everyone
Wishing everyone a wonderful new year, I've taken time to draft and explain just a few mistakes a lot of people has been making when it comes to their finances over the years and do not even realize it.
 Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES



1. NOT HAVING AN EMERGENCY FUND

Not having an emergency fund was one of the greatest financial mistakes people made last year.
Money put aside for unanticipated expenses, such as a job loss or medical emergency, is known as an emergency fund. It can be quite challenging to cough up for these unforeseen expenses without an emergency fund. Furthermore, it could be even harder to get your finances back on track if you have to take out a loan to pay for them. Having an emergency fund is crucial, and while many people made this error last year, they should not repeat it this year.

People may ask, What is the appropriate amount to save?

Having three to six months' worth of expenses saved is a good rule of thumb. However, each person's circumstance is different.

2. NOT INVESTING

One of the largest and most common mistakes people made in the previous year was not investing. This is something that should be avoided this year and this could be considered for two reasons.

Firstly, the power of compound interest is something you lose out on when you don't invest. When the profits from your investments are reinvested and yield even higher profits, this is known as compound interest. This might really build up over time and expedite the achievement of your financial objectives.

Secondly, failing to invest equates to not diversifying your financial holdings. Inflation puts your purchasing power at risk if all of your savings are in cash. However, you can diversify your investments and possibly shield your money from inflation by making investments in securities like stocks and bonds.

Investing is a critical component of long-term financial growth and protection. Thus, if you haven't invested, it's critical to do so right away and create a strategy for the future. It's never too late to begin investing, and over time, even little sums can have a significant impact.

3. OVERSPENDING

Overspending is a prevalent issue that many people experienced in the previous year and ought to be avoided in order to take charge of your finances this year. Reaching your financial objectives may be challenging and financially stressful if you overspend.

Impulsive purchases, trying to keep up with the Joneses, and not keeping track of one's expenditures are a few of the reasons why people overspend.
It's extremely important to establish a budget and fully understand your spending habits in order to prevent overspending. With the use of a budget, You can track your income and expenses, spot areas where you're overspending, and create financial objectives.

4. NOT TRACKING EXPENSES

Failing to keep track of one's spending was another common error made by individuals last year and should be avoided this year. This is a serious issue since it makes it difficult to manage your finances, accomplish your financial objectives, and it may even result in debt and overspending.

It can be very difficult for many people to keep their spending under control because they are unaware of their exact monthly expenses.
It's important to keep track on your spending so you can figure out where your money is going and adjust as needed. There are numerous ways to address this issue and keep track of your spending; you can do this by utilizing a spreadsheet, a notebook, or even a budgeting app or software.

[btc78]

4. NOT TRACKING EXPENSES

Failing to keep track of one's spending was another common error made by individuals last year and should be avoided this year. This is a serious issue since it makes it difficult to manage your finances, accomplish your financial objectives, and it may even result in debt and overspending.

It can be very difficult for many people to keep their spending under control because they are unaware of their exact monthly expenses.
It's important to keep track on your spending so you can figure out where your money is going and adjust as needed. There are numerous ways to address this issue and keep track of your spending; you can do this by utilizing a spreadsheet, a notebook, or even a budgeting app or software.

First of all, A happy new year to you too!

I always get this advice to list down my expenses in order to lessen it but i have been doing this for years and yet i feel like i am still spending too much than i can i know what i spend most of my money on so tracking your expenses definitely helps you identify what should you cut down on which leads me to my point that if you just list down your expenses and do nothing about it nothing will happen

You can know what you are spending on and still continue to spend money on that category what you need to do after listing your expenses is to change your attitude and be devoted to controlling your finances maybe even find alternatives to what you have been spending on

[Egii Nna]

3. OVERSPENDING

Overspending is a prevalent issue that many people experienced in the previous year and ought to be avoided in order to take charge of your finances this year. Reaching your financial objectives may be challenging and financially stressful if you overspend.

Impulsive purchases, trying to keep up with the Joneses, and not keeping track of one's expenditures are a few of the reasons why people overspend.
It's extremely important to establish a budget and fully understand your spending habits in order to prevent overspending. With the use of a budget, You can track your income and expenses, spot areas where you're overspending, and create financial objectives.

You are right, but I will emphasise more on the issue of overspending because many people engage in buying useless things that are of no use to them, but they feel like buying these things makes them look expensive, which is not true because all the things you buy for the sake of showing up will end up wasting the money that you are supposed to invest and end up discarding all of them because they are somehow useless to you.

Some solutions to stop this overspending, as you have mentioned above, are budgeting, tracking your expenses, and a lot more, but the most important thing is having financial discipline, because if you have financial discipline, you won’t end up spending unnecessary money unless you are already addicted to overspending because people also do get addicted to spending unnecessary money, which is another case entirely that you have to meet a counsellor to guide you on that aspect again.

[Husires]

The mistake we all fall into is not knowing the amount of spending we need, or our spending is always equal to or greater than what we collect, so that the amount remaining for investment is very small and decreases over time. Unless you have discipline in expenses, you must start doing so because any additional investment will not make you rich.
I agree with you on all points. Without sufficient funds to cover your expenses, knowing where your expenses are and directing any surplus amount to investment and diversifying investments, you will not achieve any financial successes.

[franky1]

an emergency fund should start as just 1 month of household bills (not repairs or upgrades), just bills
this is the first step to escape the reliance on credit cards for normal monthly expenses.. if you can afford your rent, utilities and groceries without needing to use a credit card, you are making a step forward

this is where you learn to spend within your means from your income which is buffered in savings where it cycles to refill the savings when you get next paycheque. thus detaches you from needing to use credit during the month, by instead having a months worth of account balance to live on which replenishes when you get paid

then expanding that to a few months of bills amount saved, which can also encapsulate surprises like repairs

once you know you can survive without using a credit card. thats where you then start paying down any debts

once debts are lowered your payments lower allowing you to pay down debts faster, via the extra spare cash

when you are freeing up more money by having less payments and already having a buffer, when you are free from consumer/regular debt, you can then use that spare cash to invest

[Hewlet]

Inability to track your expenses could become a serious challenge regardless of how much you're earning because no matter how small the amount of money you are spending his, if you keep doing it regularly, it would surprise you to know how much you've lost as a result of your carelessness.

One of the best thing you can do for yourself is to make a regular saving immediately you receive your pay, ensure that you send out a particular amount of money so you know that whatever you are spending is just a leftover and you need to be disciplined enough to tell yourEkf that you would not spend more than a certain amount every week.

[retreat]

Tracking expenses is very necessary for someone to be able to track how they spend over a period of time. By tracking expenses, a person can see how his expenses and income are at one time and see how his finances are performing, whether it is good or bad. From tracking expenses he can see what things he wastes a lot on or needs to cut back on. There is a lot of information that can be obtained by tracking expenses and if one does not do this, it is certain that he will miss the opportunity to be able to review how his financial performance is at one time and that may have an impact on his financial condition.

[MainIbem]

4. NOT TRACKING EXPENSES

Do you know that when you keep tracking your expenses you won't be able to release fund from your hands, naturally when you release money another one gets into your hands and I won't encourage holding fund at hand without putting it somewhere else. Lets say if you keep holding funds without investment, or without utilizing the fund the value ought to reduces due to inflation taking over our economy and again when you keep tracking your expenses you become too greed and stingy to release money either to your family and love ones.

To further expand this is; Set a limit of your expenses, map a budget of your daily, weekly and monthly expenses to enable you manage and track your money the way you may think of. If all these things are put in place you can be able to determine how much goes of your hands and how much is going to your savings account by then you can be able to look out for a good investment to involved yourself without waste of time.

[angrybirdy]

Tracking expenses is very necessary for someone to be able to track how they spend over a period of time. By tracking expenses, a person can see how his expenses and income are at one time and see how his finances are performing, whether it is good or bad. From tracking expenses he can see what things he wastes a lot on or needs to cut back on. There is a lot of information that can be obtained by tracking expenses and if one does not do this, it is certain that he will miss the opportunity to be able to review how his financial performance is at one time and that may have an impact on his financial condition.

That's true and It is a great help to us, especially to people who are busy in life, it would be good if we have an expenses tracker and budget planner so that we can better manage the money that comes into us. I've been doing it since last year and I saw my improvement in budgeting, it helped me especially when I had to save because i have so many bills. One of the things I liked the most is that I can immediately see what is likely to happen in the next month, in that way I can immediately take action in case my money is short or I need to cut expenses.

[naira]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

Not everyone has a stable income to set aside emergency funds or for health insurance, let alone investing where the income is sufficient only to meet needs in the next 2 or 3 days. So for them, the principles of investment, emergency funds and health insurance can only be implemented when each month finances have more left over after basic needs have been met. Talking about excessive spending, what is the benchmark for saying someone is spending excessively when we ourselves have different desires according to our needs. For example, buying a washing machine is not considered very important for you as long as you can wash manually, but for other people it could be important and help make the job easier. Things in the excessive spending category are still views from one side to another and cannot be generalized.

[Lucius]

Not having an emergency fund was one of the greatest financial mistakes people made last year.

Why only last year, was 2023 so specific from previous years? Most people are not financially literate and spend more than they have, and with such thinking they cannot put some money aside.

Investing is a critical component of long-term financial growth and protection. Thus, if you haven't invested, it's critical to do so right away and create a strategy for the future. It's never too late to begin investing, and over time, even little sums can have a significant impact.

What will you invest if you don't have enough to live on - or if you decided to create an emergency fund? Even if you have some money that you can risk to invest in something, how many people know how to choose an investment that is as safe as it is and has a solid yield?

Impulsive purchases, trying to keep up with the Joneses, and not keeping track of one's expenditures are a few of the reasons why people overspend.

You cannot spend more than what you have in your wallet, and before shopping, make a list and take as much money as you need, no more than that. Of course, leave your bank card at home because it is something that people spend the most with, because paying with a card definitely makes people lose track of how much they have spent.

It's important to keep track on your spending so you can figure out where your money is going and adjust as needed. There are numerous ways to address this issue and keep track of your spending; you can do this by utilizing a spreadsheet, a notebook, or even a budgeting app or software.

The "problem" is that following such statistics makes people feel bad because they spent too much, and they want the shopping experience to remain a pleasant memory. If I bought something expensive and it makes me happy, then I don't want to be reminded that I spent too much money.

[icalical]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

Among those 4 points, many of the people I know skip the first point, they have little to no emergency fund, most of them are employee with fixed monthly salary, they are living healthy life, they think they will not need any emergency fund. Then Covid hit, companies are laying-off their employee, some of them living from their small saving. This makes them realized that no-one is safe and everyone needs emergency fund.

[Hamphser]

3. OVERSPENDING

Not tracking or financial management is something that you had neglected if you do commit out this kind of mistake on which it would really be just that normal that you would really
ending up on messing  your finances on the time that you would really be derailing yourself when it comes to financial matter.
This is why it would be that better that you should really know on how to handle your finances well because if not then it would really be that a disaster.
People do commonly made out their realizations on the time that they would be experiencing hardship and not into that earlier time.

[Solosanz]

Nah those of them aren't important, the most important is do you get a job that pays well? if someone earn a lot, there's no need to think about emergency funds, investing, overspend and tracking expenses because your income is higher than your expenditure.

Someone earn $100,000, spend $1,000 and invest $99,000.
While another one earn $100,000, spend $100,000, and invest 0.

Which one is right and which one is wrong? the answer both of them are right, as long as you don't take a loan, you're fine.

[jrrsparkles]

Someone earn $100,000, spend $1,000 and invest $99,000.
While another one earn $100,000, spend $100,000, and invest 0.

Which one is right and which one is wrong? the answer both of them are right, as long as you don't take a loan, you're fine.

The latter is a complete mistake unless you can assure whatever happens even if the government fall apart still you have the guarantee to make $100K annually.

Avoid taking a loan is fine but it's not the only one required if you want to become financially independent.

[junder]

Hello everyone
Wishing everyone a wonderful new year, I've taken time to draft and explain just a few mistakes a lot of people has been making when it comes to their finances over the years and do not even realize it.
 Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

I think many of them are still unaware of excessive spending, such as buying something that is not really important, and this happens because of their will. especially with today's young people, many of whom insist on buying something of high value even though they don't really need it, and with this habit of course they will not think about funds for saving or investing, even though by saving or investing it will make them prepared to his future.

also with those who don't think about emergency funds, such as people who have limited income but they always prioritize their desires compared to their needs, even so I think they have to save for urgent situations such as accidents or illness, because of course to overcome that we need emergency funds, no maybe just relying on borrowed money, it's not always like that and it's also not the only solution, therefore I think to reduce excessive spending, they have to be able to restrain their desires, because it's not surprising that nowadays many people prioritize their desires rather than that need.

[Solosanz]

The latter is a complete mistake unless you can assure whatever happens even if the government fall apart still you have the guarantee to make $100K annually.

Avoid taking a loan is fine but it's not the only one required if you want to become financially independent.

How it can be a mistake? why you forcing someone to save or invest their money when they have 100% right with the money they have? don't forget there are more than 50% people living by paycheck to paycheck. It was in US, one of top paying country and have a good education, I don't think they don't learn about saving and investing, but they choose to live with that.

Well there's no guarantee you can earn a same amount of money in the next year, two years later etc, but that's their own risk. At least it not gonna hurt or give a bad effect to other people. If they take a loan, then their family are in danger if the loan can't be paid.

[bayu7adi]

2. NOT INVESTING

I believe that investing is not the root cause of someone's financial mistake. Investing is still a strategy that is not prioritized but we need it for future , or maybe end game. Even though many people make a lot of money, not everyone needs to invest... it depends on each person's financial situation. Blaming someone for failure just because they didn't invest is very wrong.

I prefer to call it "Mistakes in Investing" rather than what you mentioned, which is "Not investing." Even a professional can still be very wealthy with a high salary, even without investing. Maybe their assets come from just one source, but that source is substantial and could even surpass the income of someone who invests.

[Charmekkd]

Hello everyone
Wishing everyone a wonderful new year, I've taken time to draft and explain just a few mistakes a lot of people has been making when it comes to their finances over the years and do not even realize it.
 Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

Happy New Year too friend.

That's right, my friend, these four points are points that are often violated by most people in managing their financial flows. It's true, implementing these four points is not as easy as we imagine. However, for the economy to be more stable and well organized, these four points must be put into practice well. Because if, for example, these four points are not implemented well, I believe it is very likely that the economy will not be well organized.

Moreover, points number 1 and 2 in my opinion are the most crucial points if not put into practice. Because emergency funds and investments are very important things to have. Because these two points play an important role in planning a better future.

[cakravothy]

The emergency fund can be saved in the bank or to buy gold. the point is that liquid and liquid quickly with no loss and quickly become money when needed.
gold besides being easily liquid can be and emergency at the same time can be for investment and can be for a luxury

[Zoomic]

Hello everyone
Wishing everyone a wonderful new year, I've taken time to draft and explain just a few mistakes a lot of people has been making when it comes to their finances over the years and do not even realize it.
 Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

There are many people who are just too comfortable being employees, they just want to get paid their salaries,  save a little portion of the salary which they use to offset future expenses and life goes on. No investment spirit. Many of them are just scared of change, not like they actually love their usual routine of life and that's why their finances never improve, instead it keeps decreasing as the value of goods and services keep increasing.

Having savings is good but when these savings do not yield  interest/returns,  it is good as not saving at all. Most times, these savings in Fiat get affected by inflation and the money can no longer solve a significant problem. This is the more reason we need to cultivate the investment habit this year. And this can be achieved if we create a budget and cut down on unnecessary expenses so we can have enough to invest with. Fear has never solved any problem,  therefore we must pull ourselves together can act wisely for our own benefit.

[AprilioMP]

1. NOT HAVING AN EMERGENCY FUND

Emergency funds are funds that must be prepared in financial planning. These funds are very important to anticipate urgent situations without having to take funds from other sources that have been prepared for individual needs.
Emergency fund preparations are often prepared by large companies or other institutions that manage activities on a large scale.

In annual financial planning, 100% must be allocated to emergency funds, at least 10% to 15% if financial planning for other areas requires a higher percentage.
Emergency funds may be used when the situation requires us to use them. If not, keep the funds safe.

Even though our income is not as large as other people's income, preparing an emergency fund is mandatory. I often refer to an emergency fund as an unexpected expense that I have to set aside every month, depending on the amount of income and other needs.

[Gormicsta]

The emergency fund can be saved in the bank or to buy gold. the point is that liquid and liquid quickly with no loss and quickly become money when needed.
gold besides being easily liquid can be and emergency at the same time can be for investment and can be for a luxury

You are 100% accurate. You're right that gold can also be a wise choice, even if most people believe that storing their emergency fund in a savings account is the best option. One of gold's advantages is that it is liquid and has a long-term worth. It is true that gold can be used as an investment and that its value will increase with time. But it's crucial to keep in mind that gold is a volatile commodity with fluctuating values. Thus, even while it might be a smart choice for an emergency fund, it's crucial to diversify your investments and not place all of your money in one place.

[bussybuddy]

The allure of instant gratification can lead us to buy unnecessary things, often driven by a desire for social validation rather than genuine need. These impulse purchases, fueled by the "look expensive" mentality, can drain our pockets and leave us with a hollow feeling. But the lack of expense tracking only deepens the problem. It's like driving blindfolded, completely unaware of where our money goes. We might feel a temporary high from the purchase, but the long-term consequences can be crippling.

That's where tracking your expenses becomes a powerful tool. It's not about becoming stingy or depriving ourselves; it's about gaining control. It's like shining a light on our financial landscape, revealing where our money flows and where it could be better utilized. By setting expense limits and mapping out a budget, we take back the reins. We become conscious of our daily, weekly, and monthly spending patterns. We see where our money leaks out, where we could tighten the belt, and where we could redirect it towards more meaningful things.

[franky1]

for those with an inability to successfully track spending, or constantly over spend..
.. dont wait until months-end to realise when things go wrong

instead realise many people are happy to sign up to like 6-12 credit cards.. so when ditching the credit cards. set up 6+ debit cards
this way before spending you control budgeting limits of debit cards. rather than credit card limits controlling you at the end of the month

using the account that receives income, set up automated payments to only put budgeted amounts into each debit card per week. whereby you then label /mark each debit card for a certain purpose. that way you have the limits preset before spending

yep even if you get paid monthly you can then set weekly spending limits on EG grocery labelled debit card. so you dont blow the whole months money in one week

[Crypto Library]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

Thanks buddy you have point out a good thing. Even then it is a common thing for many people and may it is not that important for them. But I think that this post can make a reminder for all of us. When I saw your topic title I thought as usual normal topics yes it is as usual normal topic but important.
Anyway I think on those four common mistakes I did two of them on the past year like Overspending and also not tracking the expenses, I have trying many time to track my expenses but for my ignorance on it I can't continue this and I think this is very essential to track own expenses, If the expenses are tracked, then I can understand where I am overspending, and it is also convenient to take a budget strategy. Anyway after seeing your post I making a format on spreadsheet for tracking my expenses 

[pawel7777]

Hello OP. Happy New Year to you too!

Having three to six months' worth of expenses saved is a good rule of thumb. However, each person's circumstance is different.

Emergency fund is a must. You could argue how big should it be, but if it's also for the purpose of house repairs and job loss, than 6-months worth, seems like minimum. Although it might be a better idea to figure out a depreciation rate for all your assets and transfer the equivalent of it (+ a bit more on the top) to your emergency fund on each pay-day. Such fund then could grow to more than six-months worth, but could be used for major works like house renovation etc.
Of course, holding it as cash or in no-interest bank account would be a waste, given the inflation rates are still quite high, so you could combine that with your point 2 - investing and invest it somewhere, provided it's a type of investment that allows you to divest in a relatively short time. Otherwise it would be useless as an emergency fund.

One of the largest and most common mistakes people made in the previous year was not investing.

Everyone who has any savings or any surplus wealth is invested in something. Often time they're invested in cash money, one of the worst types of investment, that is designed to lose its value through inflation.

[jrrsparkles]

The latter is a complete mistake unless you can assure whatever happens even if the government fall apart still you have the guarantee to make $100K annually.

Avoid taking a loan is fine but it's not the only one required if you want to become financially independent.

How it can be a mistake? why you forcing someone to save or invest their money when they have 100% right with the money they have? don't forget there are more than 50% people living by paycheck to paycheck. It was in US, one of top paying country and have a good education, I don't think they don't learn about saving and investing, but they choose to live with that.

Well there's no guarantee you can earn a same amount of money in the next year, two years later etc, but that's their own risk. At least it not gonna hurt or give a bad effect to other people. If they take a loan, then their family are in danger if the loan can't be paid.

It doesn't matter how much they make, all that matters is how much that is left and if they have nothing left then they have to keep working to meet the needs of the next month and that is what is supposed to be called as modern-day slavery. Its our choice to make, how it is going to be but if I am picking I will choose the save and invest so that I have financial security as much backup plan and don't have to keep pushing myself hard.

US is best at everything, that is just an illusion/myth.

What would you prefer, whether your father left nothing for you or something to inherit?

[tjtonmoy]

Most of the mistakes I have corrected already in the past year one of those being overspending. I have also learned a valuable lesson. The more you keep holding your money to yourself, the less valuable it becomes. Unless you find a way to make your money grow, it is worthless. Money makes more money. If you don't have the ability to make more money from the money you have right now, you will only suffer in the future.
There's a saying that goes something like this, "If we keep on spending without doing anything, even the king's treasury will become empty". So we can assume how dangerous this is.
We need a way to grow our money otherwise we will be left empty-handed in the end.

[iv4n]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

It's good to have an emergency fund, but without some nice income it's hard to put money on the side that can cover "saving & investing". Overspending is not something that we can control, especially if we need to take care of a family and maintain the household. Many things can happen all of a sudden that will take our money from the wallet. And this inflation is not helping, my salary hasn't gone up as much as the prices have gone up.

So, you have good points here, but without income, it's hard to do anything. And to get to nice income it's not so easy... some people get there, but some never do.

[0t3p0t]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

This is legit for me and it happened to almost all of us. I am guilty to this and this is the reason why I lost opportunities to have more assets in the past. But I have already learned that mistake and hopefully will follow the right path.

[Fortify]

Hello everyone
Wishing everyone a wonderful new year, I've taken time to draft and explain just a few mistakes a lot of people has been making when it comes to their finances over the years and do not even realize it.
 Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

It can be very difficult for many people to keep their spending under control because they are unaware of their exact monthly expenses.
It's important to keep track on your spending so you can figure out where your money is going and adjust as needed. There are numerous ways to address this issue and keep track of your spending; you can do this by utilizing a spreadsheet, a notebook, or even a budgeting app or software.

There's some very good advice in there, but you might find that many people are merely surviving on a subsistence type level while they're younger - especially as they fall into the trap of overspending. One good thing about investing while you're younger is you have plenty of time to earn back money when you inevitably make mistakes, but you have to treat it as a learning experience and not go all in too early. Lots of people have been burned by poor investing strategies and swear off it forever, but they overstretched and probably picked poorly, instead of registering that they need to research better or identifying why an investment failed compared to other successful ones, then they could cut themselves off from a very powerful source of financial freedom in future.

[Twentyonepaylots]

This year I wanna focus on listing my expenses, this is the mistake that I don't want to  repeat this year. Most of us may overlook expenses on a daily basis and tracking it is one of the lesson I've learned, I am able to scrutinize my expenses and come up with new ideas on how can I optimize my daily budget. I'm guilty of how I spent my money last year, like I don't see ordering from online restaurant a luxury but once you do it often it becomes the price of a brand new phone in 2 months, so imagine all the unnecessary items or services you are getting are able to buy expensive stuff in theory.

[South Park]

First of all, A happy new year to you too!

I always get this advice to list down my expenses in order to lessen it but i have been doing this for years and yet i feel like i am still spending too much than i can i know what i spend most of my money on so tracking your expenses definitely helps you identify what should you cut down on which leads me to my point that if you just list down your expenses and do nothing about it nothing will happen

You can know what you are spending on and still continue to spend money on that category what you need to do after listing your expenses is to change your attitude and be devoted to controlling your finances maybe even find alternatives to what you have been spending on

That is the correct thing to do, if you enjoy something but it is costing you a lot of money what you need to do is to find an alternative that is cheaper, this way you can keep getting the same enjoyment while you save, however there are many people that are so set in their ways that despite knowing this information they prefer to do nothing as this will require a change on their habits, over the years I have met a lot of people like that and despite their supposed claims to want to save more money, I know they are just fronting and they have no interest in changing anything at all.

[Sanugarid]

In everything, an emergency fund is really necessary, because once your business fails or you lose your job, you will still have some money. So this is also number 1 for me if you have work or business. As for Investing, we can't blame others because most of them are afraid because the money they hold is something they worked for, so they are afraid to try something else because they might just fail.

[Solosanz]

It doesn't matter how much they make, all that matters is how much that is left and if they have nothing left then they have to keep working to meet the needs of the next month and that is what is supposed to be called as modern-day slavery. Its our choice to make, how it is going to be but if I am picking I will choose the save and invest so that I have financial security as much backup plan and don't have to keep pushing myself hard.

US is best at everything, that is just an illusion/myth.

What would you prefer, whether your father left nothing for you or something to inherit?

I don't think it's an illusion/myth, you can find many articles or people will say that. It mostly because of culture, it's very popular for them to take a student loan because many people can't afford to pay education. They need to take it because you need to have a degree to get a good job.

So the cycle started when you was young, you're in debt, when you've get a job, you only work to pay off your debt.

I'm someone who adopt minimalist lifestyle, which mean I only buy important stuff that I need, then the rest of my money, I will save it.

It's my friends who live from paycheck to paycheck, it's their choice and their life. "We only live once, try everything because you when you die you can't brought your money with you" that what was they said.

[boty]

This year I wanna focus on listing my expenses, this is the mistake that I don't want to  repeat this year. Most of us may overlook expenses on a daily basis and tracking it is one of the lesson I've learned, I am able to scrutinize my expenses and come up with new ideas on how can I optimize my daily budget. I'm guilty of how I spent my money last year, like I don't see ordering from online restaurant a luxury but once you do it often it becomes the price of a brand new phone in 2 months, so imagine all the unnecessary items or services you are getting are able to buy expensive stuff in theory.

Recording daily expenses is certainly a very important thing to do because we can see whether we have used the income we have appropriately or not and we have to study this and not repeat using money for things we don't need.
If we are aware of our mistakes and can correct them and not repeat them, of course we will be able to realize what we want in a few months, and if we indulge too much in the desire to live a luxurious life, of course the income we have will not be left and what is worse is that we we have to look for loans to be able to fulfill the needs we have.

[junder]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

It's good to have an emergency fund, but without some nice income it's hard to put money on the side that can cover "saving & investing". Overspending is not something that we can control, especially if we need to take care of a family and maintain the household. Many things can happen all of a sudden that will take our money from the wallet. And this inflation is not helping, my salary hasn't gone up as much as the prices have gone up.

So, you have good points here, but without income, it's hard to do anything. And to get to nice income it's not so easy... some people get there, but some never do.

That's right, setting aside money as an investment or saving will be difficult if you don't have enough income, because many people who are already working earn income that is only enough to meet their daily needs, therefore they can't set aside money for it. saving especially for investment, also nowadays it is difficult to get a job with a good enough income, many unemployed people are going back and forth here and there looking for a decent job, even though sometimes they have to pay money up front as a sign of being able to enter and be able to join the company Of course this will actually increase their burden.

In my opinion, currently finding a job that has a good income is also difficult, because there are few jobs available, but on the other hand, now there is the internet which is developing rapidly, and I think they have to take advantage of this, especially with young people who tend not to be able to travel far. from cellphones and the internet, this can be used to make money gradually, because getting rich straight away is impossible, whatever you do you have to start with something small and then grow and make a profit.

[Poker Player]

These are not bad tips, what is wrong is the order in which they are given and that they are incomplete. The first one should be to track your expenses, in addition to your income, that is to create a budget. This will help you not to overspend, and then you will be able to save for an emergency fund and then invest, although there would be an intermediate step which is to get rid of consumer debts.

For someone new, as I said, they are not bad, but for me, who has been interested in and practicing personal finance for years, they have basic errors.

[jaberwock]

I believe that investing is not the root cause of someone's financial mistake. Investing is still a strategy that is not prioritized but we need it for future , or maybe end game. Even though many people make a lot of money, not everyone needs to invest... it depends on each person's financial situation. Blaming someone for failure just because they didn't invest is very wrong.

I prefer to call it "Mistakes in Investing" rather than what you mentioned, which is "Not investing." Even a professional can still be very wealthy with a high salary, even without investing. Maybe their assets come from just one source, but that source is substantial and could even surpass the income of someone who invests.

If they didn't invest yet yes, but if they do, it can be. It's because maybe they picked up a bad asset? And there are even some who picked up a good asset but can still lose their invested amounts. It's because they are impatient enough to HODL longer. Then they are weak in terms of emotion and mentality because they can get affected by the FUDS and other negativities easily. Investing is popular so it is actually being prioritized by the many.

But if we are struggling financially, then it's okay to not prioritized it. If someone is already making lots of money, investing may not be needed anymore. But there are still some who did it. They are only being careful. Blaming is wrong and what is more wrong is when they blame without knowing the background of that person they blame.

[Gormicsta]

These are not bad tips, what is wrong is the order in which they are given and that they are incomplete. The first one should be to track your expenses, in addition to your income, that is to create a budget. This will help you not to overspend, and then you will be able to save for an emergency fund and then invest, although there would be an intermediate step which is to get rid of consumer debts.

For someone new, as I said, they are not bad, but for me, who has been interested in and practicing personal finance for years, they have basic errors.

You're not completely wrong, but I'd like to state that these points were not outlined in any specific order and I never said that was a comprehensive list, I'm fully aware that there are so many, I have failed to list as I only intended to outline just four that I believe are the primary and common mistakes majority of people make, so you'd be right to say it's an incomplete list or it's not orderly arranged. But it wasn't meant to be. Thanks anyways for your helpful observation.

for those with an inability to successfully track spending, or constantly over spend..
.. dont wait until months-end to realise when things go wrong

That is a really crucial point! Maintaining your financial stability requires understanding your spending patterns and putting in place a system that works for you. Furthermore, it's far simpler to change direction when you see problems early on rather than waiting until the end of the month. Those who find it difficult to stick to a budget could find this technique to be quite helpful. Additionally, I believe it's fantastic that it can be customized so that users can arrange it to suit their particular needs.

[blockman]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

[m2017]

Not having an emergency fund was one of the greatest financial mistakes people made last year.

For most people, this is a financial mistake not only for the past year, but for almost all the years of their life.

Having an emergency fund is crucial, and while many people made this error last year, they should not repeat it this year.

People will definitely repeat this mistake and will repeat it year after year. You'll see. This is the lot of the majority.

People may ask, What is the appropriate amount to save?

The amount that remains if the next point of “OVERSPENDING” is eliminated.

2. NOT INVESTING

There are questions about this point. The global financial market is at the stage of “overheating” and many predict the collapse of the global economy (with good reason), therefore, investing in traditional financial instruments is questionable. You can easily lose money, and in this case, it’s better to leave this money under your pillow.

Investing should bring profits, not losses. If you choose a good financial instrument for this, why not?

[jrrsparkles]

It doesn't matter how much they make, all that matters is how much that is left and if they have nothing left then they have to keep working to meet the needs of the next month and that is what is supposed to be called as modern-day slavery. Its our choice to make, how it is going to be but if I am picking I will choose the save and invest so that I have financial security as much backup plan and don't have to keep pushing myself hard.

US is best at everything, that is just an illusion/myth.

What would you prefer, whether your father left nothing for you or something to inherit?

I don't think it's an illusion/myth, you can find many articles or people will say that. It mostly because of culture, it's very popular for them to take a student loan because many people can't afford to pay education. They need to take it because you need to have a degree to get a good job.

So the cycle started when you was young, you're in debt, when you've get a job, you only work to pay off your debt.

I'm someone who adopt minimalist lifestyle, which mean I only buy important stuff that I need, then the rest of my money, I will save it.

It's my friends who live from paycheck to paycheck, it's their choice and their life. "We only live once, try everything because you when you die you can't brought your money with you" that what was they said.

The US is one of the countries where students spend more money on education which is a fact but it doesn't mean students get the best quality education or even there is equality in the education.

Student loan is a fact and they do it because that is what we were conditioned for, study hard, get a degree then go for a job then keep working until retirement then enjoy on the couch then we will never been able to see what these rich people are doing in their life.

We live once so we need to enjoy everything is something that keeps injected to people to keep their spending spree no matter how much their earnings graphe increase.

[Gormicsta]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

There is a distinction between investing and saving, and some individuals may not be aware that investing is something they should consider if they want to increase their wealth over time. Those are some really intriguing points.

Saving money alone won't cut it; you also need to invest it to get returns by buying stocks, bonds, and yes, even Bitcoin. I appreciate that you emphasize the need of understanding your personal risk tolerance because it's a crucial consideration when making investments. It involves striking the ideal ratio between profit and risk.

[DabsPoorVersion]

Not having an emergency fund was one of the greatest financial mistakes people made last year.

For most people, this is a financial mistake not only for the past year, but for almost all the years of their life.

This is true. But we should also consider the fact like those people are unable to have an emergency fund because they don't earn enough to provide for their daily needs in life.

Having an emergency fund is crucial, and while many people made this error last year, they should not repeat it this year.

People will definitely repeat this mistake and will repeat it year after year. You'll see. This is the lot of the majority.

Well, it's difficult for people to suddenly start building an emergency fund due to various factors they need to consider. Unless they have enough money to cover their daily expenses and are committed to correcting past financial mistakes, it can be a challenging task.

[xSkylarx]

1. NOT HAVING AN EMERGENCY FUND
2. NOT INVESTING

This really varies for some people because for others, their salary is just enough for their needs and there is no spare money for an emergency fund or investment. I myself am having a hard time doing this, but with proper budgeting and cutting some expenses, I will try to do it this year because last year I had a hard time doing it, so I do hope I can have an emergency fund because it is very difficult to have debt these days due to high interest.

[Gormicsta]

Not having an emergency fund was one of the greatest financial mistakes people made last year.

For most people, this is a financial mistake not only for the past year, but for almost all the years of their life.

This is true. But we should also consider the fact like those people are unable to have an emergency fund because they don't earn enough to provide for their daily needs in life.

Regardless of how much or how little your income is, I'll say having an emergency fund is very compulsory, even if you'll have to cut out or cut down a few expenses in order to meet up with your savings or emergency fund.

The same way you don't need to earn so much before you can use the DCA technique to accumulate bitcoin or grow your investment, so is it when it comes to gradually piling up some funds for future emergencies. So yes, even if your earnings are very little, you could still stack up some money for the future .

1. NOT HAVING AN EMERGENCY FUND
2. NOT INVESTING

This really varies for some people because for others, their salary is just enough for their needs and there is no spare money for an emergency fund or investment. I myself am having a hard time doing this, but with proper budgeting and cutting some expenses, I will try to do it this year because last year I had a hard time doing it, so I do hope I can have an emergency fund because it is very difficult to have debt these days due to high interest.

You've made a pretty significant point here: when folks are just trying to make ends meet, it can be very difficult for them to invest money or save for an emergency fund. Even so, it's imperative that you make the effort, even if it's only a small amount at a time, despite how difficult it may be. Budgeting and cost-cutting are excellent ideas, in my opinion, and they can assist people in finding even a tiny sum of money to invest or put toward an emergency fund.

[blockman]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

There is a distinction between investing and saving, and some individuals may not be aware that investing is something they should consider if they want to increase their wealth over time. Those are some really intriguing points.

Saving money alone won't cut it; you also need to invest it to get returns by buying stocks, bonds, and yes, even Bitcoin. I appreciate that you emphasize the need of understanding your personal risk tolerance because it's a crucial consideration when making investments. It involves striking the ideal ratio between profit and risk.

Don't mention it because that's what I see in today's generation especially in my country. People think that when you save money, that's it and you don't need to do anything with the money and what matters is that you are seeing good numbers on your bank account. But they don't understand that it is going to be there and will just be taken over by the inflation and if they are not going to put it somewhere else and take a risk, it won't grow. So, with that situation, no matter what they do is that they're going to lose so before losing, why not just take the risk and have that chance of growing it over time with a good investment or asset like the ones you've mentioned right or any investment that they know and aware of.

[Mahanton]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

There is a distinction between investing and saving, and some individuals may not be aware that investing is something they should consider if they want to increase their wealth over time. Those are some really intriguing points.

Saving money alone won't cut it; you also need to invest it to get returns by buying stocks, bonds, and yes, even Bitcoin. I appreciate that you emphasize the need of understanding your personal risk tolerance because it's a crucial consideration when making investments. It involves striking the ideal ratio between profit and risk.

Don't mention it because that's what I see in today's generation especially in my country. People think that when you save money, that's it and you don't need to do anything with the money and what matters is that you are seeing good numbers on your bank account. But they don't understand that it is going to be there and will just be taken over by the inflation and if they are not going to put it somewhere else and take a risk, it won't grow. So, with that situation, no matter what they do is that they're going to lose so before losing, why not just take the risk and have that chance of growing it over time with a good investment or asset like the ones you've mentioned right or any investment that they know and aware of.

They are indeed hoarding tons of cash into their bank account without even realizing that inflation could hit up 2-3% per year on which it do really just simply shows that fiat money is devaluing but for those people who do have that knowledge when it comes to investment and businesses on which they do really be able to patch up those inflation effect and this is something that i can say that it would really be that a wise decision
that had been made by a certain individual. Dont store up money on your bank but it would be better that you should really be letting it roll on other via means.
Success cant really be able to achieve if you do really just simply make yourself that not making any actions and really just sitting idle and trying to play out safe without even thinking
that you are basically just losing money overtime when it comes literally into its value.

People wont learn if they wont really be able to experience those mistakes but its true that its not needed for us to commit mistakes first before we would really be able to learn.
We can actually be able to read up someones experiences and decisions in life on which we could also reflect into ours on which i could say that it would
really be something viable and much worth i should say.

[|MINER|]

Every person should have an emergency fund.  It is not possible to say how danger comes in human life.  Accident, job loss, family crisis can cause various problems.  There should always be an emergency fund for this.  All expenses should be settled and invested. If money is wasted, it will be spent.  Investing has a saved money. Luxury can never bring good things.  You should keep calculating all the time. If you spend more, you have to pay for it in the future.  And you should keep an account of where you are spending.  Then you will have an accurate account of your money.

[Queentoshi]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

The thing is that some of these things are no mistakes, but situations that were difficult for some people to control because at the start of last year 2023, they planned to have emergency funds, to invest, not to overspend, and to track expenses, but it did not work out for them because of how poor their economy is, they are not earning enough to even spare some for emergencies and also investments and then try not to overspend but due to the ever increasing price of things in the market they keep spending more than their budgets and then they have also stopped tracking their expenses because tracking their expenses makes them depressed seeing that they are spending more money than they are earning and balancing the rest up with debt. The situation of things is really very difficult for some people in some places, and due to that, this year may be a repeat of last year.

[Gormicsta]

Every person should have an emergency fund.  It is not possible to say how danger comes in human life.  Accident, job loss, family crisis can cause various problems.  There should always be an emergency fund for this.  All expenses should be settled and invested. If money is wasted, it will be spent.  Investing has a saved money. Luxury can never bring good things.  You should keep calculating all the time. If you spend more, you have to pay for it in the future.  And you should keep an account of where you are spending.  Then you will have an accurate account of your money.

You raise some excellent suggestions about the value of having an emergency fund and the necessity of keeping a close eye on your spending. I really like your point about how important it is to be ready for the unexpected. Emergencies like as accidents, job loss, and family difficulties can all occur, and having an emergency fund on hand will lessen the financial strain that may accompany them. Regarding the significance of investing your money, even if it's a little sum, I also think you make a lot of sense.

[ScamViruS]

Among those 4 points, many of the people I know skip the first point, they have little to no emergency fund, most of them are employee with fixed monthly salary, they are living healthy life, they think they will not need any emergency fund. Then Covid hit, companies are laying-off their employee, some of them living from their small saving. This makes them realized that no-one is safe and everyone needs emergency fund.

Very true. The importance of an emergency fund can be understood when any emergency situation arises, and the biggest example is the time of Covid. People are most carefree when they are happy. Because there are no bad situations during those times, people don't think much about the bad times that may come in their life. Everyone should really think that time does not always pass in the same way, situations sometimes teach people hard reality.

I have seen how people are struggling to survive after job loss, because they have no second option except job, and they don't have money to start anything new, and that's why having an emergency fund is at least a new one. They could start something and try to live better.

[Gormicsta]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

The thing is that some of these things are no mistakes, but situations that were difficult for some people to control because at the start of last year 2023, they planned to have emergency funds, to invest, not to overspend, and to track expenses, but it did not work out for them because of how poor their economy is, they are not earning enough to even spare some for emergencies and also investments and then try not to overspend but due to the ever increasing price of things in the market they keep spending more than their budgets and then they have also stopped tracking their expenses because tracking their expenses makes them depressed seeing that they are spending more money than they are earning and balancing the rest up with debt. The situation of things is really very difficult for some people in some places, and due to that, this year may be a repeat of last year.

That is accurate, and it's also a very crucial point: saving and investing can be challenging for some people due to external variables like the state of the economy. Sometimes having the ability to make the proper decisions is more important than just knowing what to do. Finding yourself unable to achieve your financial objectives due to events beyond of your control can be extremely depressing. So, do you personally believe that there are any approaches or techniques that could be able to assist those who are in this kind of situation?

[Fakhrulenclix]

Among those 4 points, many of the people I know skip the first point, they have little to no emergency fund, most of them are employee with fixed monthly salary, they are living healthy life, they think they will not need any emergency fund. Then Covid hit, companies are laying-off their employee, some of them living from their small saving. This makes them realized that no-one is safe and everyone needs emergency fund.

Very true. The importance of an emergency fund can be understood when any emergency situation arises, and the biggest example is the time of Covid. People are most carefree when they are happy. Because there are no bad situations during those times, people don't think much about the bad times that may come in their life. Everyone should really think that time does not always pass in the same way, situations sometimes teach people hard reality.

I have seen how people are struggling to survive after job loss, because they have no second option except job, and they don't have money to start anything new, and that's why having an emergency fund is at least a new one. They could start something and try to live better.

In fact, everyone wants to have an emergency fund, but not everyone can set aside their money because an income that can only cover living needs makes it difficult for someone to control their finances, especially if they have many dependents in their lives.
I'm sure everyone is aware of the importance of an emergency fund, as am I, but until now I have often failed to set aside money because of the high cost of living and also the needs of several of my family that I have to fulfill.

[KingsDen]

4. NOT TRACKING EXPENSES

Do you know that when you keep tracking your expenses you won't be able to release fund from your hands, naturally when you release money another one gets into your hands and I won't encourage holding fund at hand without putting it somewhere else. Lets say if you keep holding funds without investment, or without utilizing the fund the value ought to reduces due to inflation taking over our economy and again when you keep tracking your expenses you become too greed and stingy to release money either to your family and love ones.

To further expand this is; Set a limit of your expenses, map a budget of your daily, weekly and monthly expenses to enable you manage and track your money the way you may think of. If all these things are put in place you can be able to determine how much goes of your hands and how much is going to your savings account by then you can be able to look out for a good investment to involved yourself without waste of time.

I am sorry that you totally misunderstood the. concept of tracking your expenses. Tracking your expenses does not mean that you should not spend or you should be stingy, it simply means that you should know where and how you are spending. There are people who earns a huge lot of money but they do not give account how they spent the money, at the end of the day it will look as if the lost money or someone stole from them. That is exactly what happens when you do not track your expenses.

When you are tracking your expenses, it will give you a clear picture of how much you earn and how you should spend. When you have this information at the tip of your fingers, you can now use the power of opportunity cost to be able to live within your means. Being able to track your expenses does not depict greed or stinginess, rather it will give you the clear picture of your financial inflow and outflow and hence enable you to make good use of your money.

[RockBell]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

It is not a good idea to keep track of your costs. How much money is going out and how much money is coming in, I'm confident that no matter how well you keep track of things, certain things will be recalled. When it comes to finances in this current economy, earnings are low and items are expensive, so keeping up with expenses is difficult. while I have money, I think about what I need and where I want to put it; however, you must be cautious while making investment decisions. I would recommend saving when you want to use the money to purchase or invest rather than simply saving. A background study of the chosen investment should be carried out. And one thing I love about investing in bitcoin is that with as low as 10 dollar can be invested. Its usually fun to because you can take out you money any day anytime buyers are always available.

[ScamViruS]

Among those 4 points, many of the people I know skip the first point, they have little to no emergency fund, most of them are employee with fixed monthly salary, they are living healthy life, they think they will not need any emergency fund. Then Covid hit, companies are laying-off their employee, some of them living from their small saving. This makes them realized that no-one is safe and everyone needs emergency fund.

Very true. The importance of an emergency fund can be understood when any emergency situation arises, and the biggest example is the time of Covid. People are most carefree when they are happy. Because there are no bad situations during those times, people don't think much about the bad times that may come in their life. Everyone should really think that time does not always pass in the same way, situations sometimes teach people hard reality.

I have seen how people are struggling to survive after job loss, because they have no second option except job, and they don't have money to start anything new, and that's why having an emergency fund is at least a new one. They could start something and try to live better.

In fact, everyone wants to have an emergency fund, but not everyone can set aside their money because an income that can only cover living needs makes it difficult for someone to control their finances, especially if they have many dependents in their lives.
I'm sure everyone is aware of the importance of an emergency fund, as am I, but until now I have often failed to set aside money because of the high cost of living and also the needs of several of my family that I have to fulfill.

It is difficult to keep an emergency fund for high living expenses. But if you think about having an emergency fund, you can really do it if you have a job or business. High cost of living is not the main issue not only to keep an emergency fund, but also because of overspending it is not possible to save funds. So if you avoid spending extra according to your income, you can save even a small amount of funds at the end of the month. So you have to have the willpower to have an emergency fund, otherwise you won't be able to keep an emergency fund even if you earn millions of dollars because of overspending.

[moneystery]

i agree with the mistakes of not having an emergency fund, overspending, and not tracking expenses, but regarding not investing, i don't agree that it can be called a mistake. everyone has their own decision to invest their money in the market. and each person may have different knowledge of investment or they may not have enough money to be able to invest in the market. so when they do not choose to invest, it cannot be said to be a mistake, because it is their choice perhaps due to limited money or knowledge or because of other reasons that force them not to invest in the market.

[_BlackStar]

Every person should have an emergency fund.  It is not possible to say how danger comes in human life.  Accident, job loss, family crisis can cause various problems.  There should always be an emergency fund for this.

Of course - an emergency fund is a must have, but not everyone can afford to set aside their income for an emergency fund. There are millions of people out there working to eat - so how do you get all of them to set aside their income for an emergency fund?

All expenses should be settled and invested. If money is wasted, it will be spent.  Investing has a saved money. Luxury can never bring good things.  You should keep calculating all the time. If you spend more, you have to pay for it in the future.  And you should keep an account of where you are spending.  Then you will have an accurate account of your money.

I think there are a lot of people who are as good with words as you are - but not many people who are as good at act as you are. Everyone's economy is different - so I can't blame them for not having an emergency fund, investing or accounting for their expenses.

Educational, social and economic status are the reasons why not everyone can be as we hope. They don't want it to be like that - but that's the situation they have to accept even if it's just enough to survive.

[sana54210]

The thing is that some of these things are no mistakes, but situations that were difficult for some people to control because at the start of last year 2023, they planned to have emergency funds, to invest, not to overspend, and to track expenses, but it did not work out for them because of how poor their economy is, they are not earning enough to even spare some for emergencies and also investments and then try not to overspend but due to the ever increasing price of things in the market they keep spending more than their budgets and then they have also stopped tracking their expenses because tracking their expenses makes them depressed seeing that they are spending more money than they are earning and balancing the rest up with debt. The situation of things is really very difficult for some people in some places, and due to that, this year may be a repeat of last year.

The only thing you have 100% control over is tracking expenses, poor or rich, have trouble or not, you can always track your expenses no matter what happens in your life, just start an excel, new tabs for each month, and just check what it goes to. I have done it for 2023, and unfortunately my biggest spending was medical bills, it's both terrible because it's health and family members so it's emotionally devastating, but it's also quite expensive as well :/.

In the end, I didn't end up saving anything, and have no emergency funds, I do have some investments, but not monthly investments, just whenever I happened to have some money. What could I have done?

I mean not like you can just say "let's not get sick", so it was an unfortunate year for me, I hope this year becomes better but I am currently sick with flu, there is a big viral going around in my nation and hospitals are flooded with people who have flu, I am doing better than most thankfully, most people say that they are feeling worse than even covid, they barely get out of bed, I am doing a bit better than them, just a fever and feeling super tired, which I can handle, so 2024 didn't start that great neither unfortunately.

[CryptopreneurBrainboss]

Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

Reading through your thread, all I could think about are this three words and that's 'Lack of planning'. It's as a result of lack of financial planning that we don't have emergency funds, investment funds and spend to the point that wr don't realize that we're over spending until you're done spending. A financially serious person is supposed to have had all this under control.

You can't see a millionaire slacking back in these things or they'll lose their wealth. The hardest thing to do isn't to make the money but to retain it as not many people are learnings that while hustling for the money. To avoid making this same mistakes this year, we have to plan our money before receiving the money.

When your salary gets into your account split it into different accounts for the different things you're doing. Send the part for investing into an investment account, the spending for a spending account and the same thing should be done for others like the grocery, daily expenses and so on. Planning makes you conscious of what you're using your money to do and when you're directing your money and not your money directing you, you won't fall a victim to what this thread is all about.

[alastantiger]

an emergency fund should start as just 1 month of household bills (not repairs or upgrades), just bills
this is the first step to escape the reliance on credit cards for normal monthly expenses.. if you can afford your rent, utilities and groceries without needing to use a credit card, you are making a step forward

While you are correct, Just wanted to say that I'm some countries they are not issued credit cards. What they have is debit cards. Therefore in the case above I think it would be right to say that ...this is the first step to escape the reliance on loans.

this is where you learn to spend within your means from your income which is buffered in savings where it cycles to refill the savings when you get next paycheque. thus detaches you from needing to use credit during the month, by instead having a months worth of account balance to live on which replenishes when you get paid

For some people who have to deal with black tax. The explanation above is the same. I'd like to add that spending within your means includes black tax. Do not let any family member guilt trip you in to spending above your means. They will be fine.

Read the whole of the quoted text by
franky1

[Sanugarid]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

Yah I agree, I don't track my expenses either but I know what I'm doing. It's hard to force others to invest because most of them are afraid to invest because they worked hard for that money, they can't let it go just like that in short they don't have any knowledge or lack of knowledge about investment things so they are afraid make a mistake.

[Gormicsta]

Here are 4 common mistakes people made with their finances last year that should really be looked into and avoided this year in order to achieve your financial goals.

Reading through your thread, all I could think about are this three words and that's 'Lack of planning'. It's as a result of lack of financial planning that we don't have emergency funds, investment funds and spend to the point that wr don't realize that we're over spending until you're done spending. A financially serious person is supposed to have had all this under control.

You can't see a millionaire slacking back in these things or they'll lose their wealth. The hardest thing to do isn't to make the money but to retain it as not many people are learnings that while hustling for the money. To avoid making this same mistakes this year, we have to plan our money before receiving the money.

When your salary gets into your account split it into different accounts for the different things you're doing. Send the part for investing into an investment account, the spending for a spending account and the same thing should be done for others like the grocery, daily expenses and so on. Planning makes you conscious of what you're using your money to do and when you're directing your money and not your money directing you, you won't fall a victim to what this thread is all about.

You've really hit the nail on the head.
One of the primary causes of people's lack of investment, emergency, and expenditure of cash is undoubtedly lack of planning. It's quite simple for us to get lost in the moment and lose track of the bigger picture, but doing so can have negative impacts on our financial stability.

Many people say that their low income is the actual reason they can't track their spending or save money for an emergency fund, but in my opinion, the real cause is lack of adequate planning. If someone had planned ahead and started saving money for the future, having a small income wouldn't be an excuse at all.

[DabsPoorVersion]

Not having an emergency fund was one of the greatest financial mistakes people made last year.

For most people, this is a financial mistake not only for the past year, but for almost all the years of their life.

This is true. But we should also consider the fact like those people are unable to have an emergency fund because they don't earn enough to provide for their daily needs in life.

Regardless of how much or how little your income is, I'll say having an emergency fund is very compulsory, even if you'll have to cut out or cut down a few expenses in order to meet up with your savings or emergency fund.

The same way you don't need to earn so much before you can use the DCA technique to accumulate bitcoin or grow your investment, so is it when it comes to gradually piling up some funds for future emergencies. So yes, even if your earnings are very little, you could still stack up some money for the future .

It is always a good idea to start saving even a small amount of money for your emergency fund. However, as I have said, it may not be feasible for everyone, particularly for those who support their families financially and have no one to turn to for help with daily needs and monthly expenses. As a result, they may not be able to save enough money for their emergency fund.

I mean that it may take time for some individuals to start saving for emergencies. Even if it's the start of a new year, it's not always possible to begin saving immediately, especially if you have limited funds. The key is to have a plan and choose the right timing to make it feasible, particularly for those who are only able to cover their monthly expenses with their salary.

[junder]

It is always a good idea to start saving even a small amount of money for your emergency fund. However, as I have said, it may not be feasible for everyone, particularly for those who support their families financially and have no one to turn to for help with daily needs and monthly expenses. As a result, they may not be able to save enough money for their emergency fund.

I mean that it may take time for some individuals to start saving for emergencies. Even if it's the start of a new year, it's not always possible to begin saving immediately, especially if you have limited funds. The key is to have a plan and choose the right timing to make it feasible, particularly for those who are only able to cover their monthly expenses with their salary.

That's right, some families or people may still not have a job or a steady income, so for their daily needs alone they are already difficult, therefore maybe they cannot save for an emergency fund and there are still many families who do not have a stable regular income.  So let alone saving for an emergency fund for their basic needs they still have problems. 

If they already have a job with a steady income, and even though the salary is only enough to cover their basic needs,  maybe they can force themselves to set aside a little from their monthly income, but no one knows that maybe those who already have a steady salary still always feel short. Therefore, it is important for them to be able to manage their finances well.

[lizarder]

1. NOT HAVING AN EMERGENCY FUND

How can you have an emergency fund if someone does not have a good job and that is why it is necessary to prepare for income maturity so that it can be far more stable with fixed expenses for the needs of daily life.

2. NOT INVESTING

Not investing is not a problem but a person must have other financial plans, such as running a business or job that is more productive because not everyone is involved in investment but their financial structure can also be better than people who undergo investment.

3. OVERSPENDING  

This is a big problem because if someone is unable to live in simplicity, it will make his life even more in trouble. Excessive spending money can make the financial structure more problematic because we are not able to compensate for cash flows that enter with a cash flow that comes out. If this is the problem then people must try to live with suitability and buy something only based on needs not to fulfill the style.

[oktana]

Not having an emergency fund is something that even I am guilty of. Honestly, it seems like there’s always a problem that money needs to solve and that’s just how life is. But I totally understand the importance of having emergency funds because you’d never know what will happen in the next minute. However, I am actually investing my money and I do not overspend. Even when I purchase things, I ensure that I really need them before buying. And for tracking expenses, this may not really be needed if you don’t feel like you’re overspending nor like your money goes down too quickly. But then, it could be necessary for further reference too. Well, I do not do it.

[bitgolden]

Having your money make you money would be the solution to all of this. I know that people do not like proof of stake coins all that much but that is exactly what you need. In a world where you need 1k per month to survive, ETH is giving about 5% which means that in about 240k dollars invested into it, you would be making 12k per year, and yes 240k is a ton of money and majority of the world do not have it, in fact you would be in the 1% top richest people in the world if you had 240k, but also it is not impossible in the crypto world neither.

You can ask around and you will hear a lot of stories of people who did not have anything remotely that much, had a few good investments in a few bull cycles and found that money. It could be some other way as well of course, but you need to guarantee some income, even if you are out of work.

[mirakal]

The mistake we all fall into is not knowing the amount of spending we need, or our spending is always equal to or greater than what we collect, so that the amount remaining for investment is very small and decreases over time. Unless you have discipline in expenses, you must start doing so because any additional investment will not make you rich.
I agree with you on all points. Without sufficient funds to cover your expenses, knowing where your expenses are and directing any surplus amount to investment and diversifying investments, you will not achieve any financial successes.

If you don’t live within your means, you will always have financial struggles every now and then. Hence, budgeting is a wise move so you can track your expenses and determine how much you are supposed to spend. If you follow strictly what’s in your budget, then you will not be tempted to overspend and buy unnecessary things that will only waste your money and even your time.

Everything will be possible as long as there is discipline. You have your goals so you should stick to it and never create another goals. Take one step at a time, you will end up having good amount of finances if you target your goal and work on it.

[STT]

Good basic advice, easy to agree with.  The most expensive money you could ever encounter is the money you dont have when you absolutely need it and you can bet all the prices for that money you dont have have immediately go to the highest possible.  When you are an optional customer, deciding when you want to buy or not and the company has to win your business then you have the power and very likely the price becomes very low.    So the idea of having spare cash, calculating bills to avoid a rush is all a play on that idea.   Dont let them corner you and force a bad price on you, its how poor people stay poor sadly so very easy to fall into this trap.

[bitLeap]

Not having an emergency fund is something that even I am guilty of. Honestly, it seems like there’s always a problem that money needs to solve and that’s just how life is. But I totally understand the importance of having emergency funds because you’d never know what will happen in the next minute. However, I am actually investing my money and I do not overspend. Even when I purchase things, I ensure that I really need them before buying. And for tracking expenses, this may not really be needed if you don’t feel like you’re overspending nor like your money goes down too quickly. But then, it could be necessary for further reference too. Well, I do not do it.

Yes, there are probably many people who don't realize that an emergency fund is a must-have, usually those who don't realize it are people who haven't felt something urgent. But don't confuse emergency fund and investment, because I also still see people who still equate it, they still think investment can be used as an emergency fund too, yes it can be used but it has risks too. Just imagine when our investment is in a loss, is it worth selling? I think not. I personally always separate the two, because I have to anticipate things that look trivial but have a very big impact.

[harapan]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES



Not having an emergency fund is something am always concerned about.
  Emergency fund is money set aside to cover life's unexpected events.Having an emergency fund helps to soften the feeling of been unemployed,it helps someone to retire comfortably without having fears of what life has to throw at you in the future.

The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security for yourself and your family.At every point in someone's life,there's something that needs financial attention and support.
 "You really want to make sure you keep your emergency fund for emergencies that must be addressed right now,"ensure that you start now.

[nara1892]

The mistake we all fall into is not knowing the amount of spending we need, or our spending is always equal to or greater than what we collect, so that the amount remaining for investment is very small and decreases over time. Unless you have discipline in expenses, you must start doing so because any additional investment will not make you rich.
I agree with you on all points. Without sufficient funds to cover your expenses, knowing where your expenses are and directing any surplus amount to investment and diversifying investments, you will not achieve any financial successes.

If you don’t live within your means, you will always have financial struggles every now and then. Hence, budgeting is a wise move so you can track your expenses and determine how much you are supposed to spend. If you follow strictly what’s in your budget, then you will not be tempted to overspend and buy unnecessary things that will only waste your money and even your time.

Everything will be possible as long as there is discipline. You have your goals so you should stick to it and never create another goals. Take one step at a time, you will end up having good amount of finances if you target your goal and work on it.

True, but unfortunately I see most people today are more concerned with lifestyle than simplicity that can make them feel comfortable in life by only buying something that is needed and there is no budget allocation for something that is not useful or just for style. It is very clear that in any case management will always be the main and most important thing for a balance especially when it comes to finances.

On the other hand, in my opinion, the problem is that people today are always fooled by the name of needs and wants, almost always confused because of the difficulty of distinguishing, such as buying something that they think is a necessity of life when it is nothing more than a desire and does not have any benefits in the long run, one of the reasons is that environmental factors are quite influential, such as maybe if they have an environment that always lives glamorously such as joining some rich people but they themselves are at an intermediate level in financial terms then obviously budget allocations that are actually not needed or not really needed can occur, such as maybe buying an Iphone just to keep up with the style of their friends who basically they can't afford to spend money on it, as a result it can really disrupt their finances and lose balance for the real needs of life.

[demonica]

I agree with what you've listed especially for emergency funds. People often disregard this so when emergency occurs, it's hard for them to find funds. Since it's emergency, we never know when we'll be needing money so it's better to always have one. One great example is the pandemic. We never really expected the lockdowns will last longer so people who have no emergency funds struggled looking for money to use during those times.

Also, I think tracking expenses is a great thing. Tho I don't really do this since I'm not that organized but it could be very efficient if you really want to closely monitor the outflow and inflow of your money.

[franky1]

its worth noting, that its best to try to set up a second account with a different bank for the emergency funds for these reasons:

1. if main income accounts bank freezes the account they also freeze accounts associated with account holder they hold.
2. if main income accounts bank has a internal error problem or does a bank run.
3. if bank wants to close account spontaneously, access to funds can be delayed from that bank

so by having spare funds with a different bank increases success of having money available in an emergency

[CODE200]

1. NOT HAVING AN EMERGENCY FUND

2. NOT INVESTING

3. OVERSPENDING

4. NOT TRACKING EXPENSES

This all boils down as to how much you're spending and how much you're earning, not having an emergency fund is a poor man's thing and there's a lot of poor men out there so that's such an insensitive shit to say that everyone needs an emergency fund. Again, not everyone has the extra money to spare when it comes to investing and so they can't do this because they have a hard time already just living by and surviving daily.

The overspending I can agree that it's a problem and a mistake that needs to be corrected as quickly as possible because overspending disguises itself as if you really need that thing so you go above and beyond in your spending which ends up with you having to make a lot more financial mistakes like bad loans. The last one I can definitely agree with that, if you actually do that tracking of your expenses, you can easily solve that overspending issue that you're having.

[idarasun]

The mistake we all fall into is not knowing the amount of spending we need, or our spending is always equal to or greater than what we collect, so that the amount remaining for investment is very small and decreases over time. Unless you have discipline in expenses, you must start doing so because any additional investment will not make you rich.
I agree with you on all points. Without sufficient funds to cover your expenses, knowing where your expenses are and directing any surplus amount to investment and diversifying investments, you will not achieve any financial successes.

You are right, it is important to be aware of our spending and our ability to manage our funds wisely in order to achieve financial success. And discipline in managing finances will help build strong foundational habits for investment and growing wealth.

[AnonBitCoiner]

Yes, there are probably many people who don't realize that an emergency fund is a must-have, usually those who don't realize it are people who haven't felt something urgent. But don't confuse emergency fund and investment, because I also still see people who still equate it, they still think investment can be used as an emergency fund too, yes it can be used but it has risks too. Just imagine when our investment is in a loss, is it worth selling? I think not. I personally always separate the two, because I have to anticipate things that look trivial but have a very big impact.

Those who don't keep emergency fund with themselves are those who don't have any responsibility so when they become a responsible person then there is a possibility that he will think about all the activities, expenses as well as about urgent needs. If you are a wealthy person still you will need money for urgent work because all the time the situation are not same.

Investment cannot be used as a emergency fund but for retired individuals it will help alot to provide an opportunity to earn monthly income. Investment and emergency funds are two different things because for urgent work we cannot take out our investment fund because the situation of market are not always alike. Same is the case that we cannot use emergency fund for investment as we know that life is unpredictable and all situations can altered anytime.

[Gormicsta]

its worth noting, that its best to try to set up a second account with a different bank for the emergency funds for these reasons:

1. if main income accounts bank freezes the account they also freeze accounts associated with account holder they hold.
2. if main income accounts bank has a internal error problem or does a bank run.
3. if bank wants to close account spontaneously, access to funds can be delayed from that bank

so by having spare funds with a different bank increases success of having money available in an emergency

Usually, Emergency Funds shouldn't be easily accessible. I have an app where I do more of my savings sometimes (not long-term) in that app, I can only access my funds at least 24 hours upon request and not immediately. So something like that could really help.

And then again, I wouldn't really recommend having your emergency fund in fiat or your local bank, especially when it's long-term, of course emergency funds are meant to be long-term. My point is that having your emergency fund in local banks or fiat exposes you to a few things, your money may be safe there until you need it but it's never safe from inflation, inflation can periodically disvalue that fund.

[pawel7777]

1. NOT HAVING AN EMERGENCY FUND

How can you have an emergency fund if someone does not have a good job and that is why it is necessary to prepare for income maturity so that it can be far more stable with fixed expenses for the needs of daily life.

Obviously the advice in the OP's post is directed to people who at least have any regular income allowing them to survive and have a little surplus on the top.
If one doesn't earn enough to meet daily needs, he should be focusing on finding a steady income in the first place and worry about all other things later.

2. NOT INVESTING

Not investing is not a problem but a person must have other financial plans, such as running a business or job that is more productive because not everyone is involved in investment but their financial structure can also be better than people who undergo investment.

By all means, investing in own business or investing in own qualifications/skills that will help you increase your earnings is also investing. And even if you're short of money, you could still invest your time (aka your most valuable asset) to learn something useful.

[blockman]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

Yah I agree, I don't track my expenses either but I know what I'm doing. It's hard to force others to invest because most of them are afraid to invest because they worked hard for that money, they can't let it go just like that in short they don't have any knowledge or lack of knowledge about investment things so they are afraid make a mistake.

And we're not all the same that we're open to investing. While us here, obviously we're all investors and we understand the risk that we take. We can't just dictate that to the other people that they should also invest just as we because one can say that they're afraid to invest and they can't take it on their appetites. Then some might say that they're inspired but never have followed and obeyed what we've said, some are like speculators and they're the ones that actually do the same thing as us and silently investing.

[0t3p0t]

I don't track my expenses and I admit that is a mistake that I've been doing but that's not to the point that has made me broke. I can say that I know myself and I'm still responsible when its come to my expenses and finances. One another thing that I see with others mistake is that this is related to investing and what they do is they save to save and not save to invest. It's hard to invest when you don't have the idea on what type of risk tolerance you have but that's for each of us as an individual to figure out. Those savings that we have is much better be kept to investments that we know especially from most of us here, with Bitcoin.

Yah I agree, I don't track my expenses either but I know what I'm doing. It's hard to force others to invest because most of them are afraid to invest because they worked hard for that money, they can't let it go just like that in short they don't have any knowledge or lack of knowledge about investment things so they are afraid make a mistake.

And we're not all the same that we're open to investing. While us here, obviously we're all investors and we understand the risk that we take. We can't just dictate that to the other people that they should also invest just as we because one can say that they're afraid to invest and they can't take it on their appetites. Then some might say that they're inspired but never have followed and obeyed what we've said, some are like speculators and they're the ones that actually do the same thing as us and silently investing.

Yeah you got some point mate. The fact that we have different strategies in making money on something we do but we all know that some strategies might work or not on other people as well. Some smart people also did something like improvising other peoples strategy to suit their taste and make it work better than the other.

[Renampun]

everything you wrote in the list is the right thing, and all these mistakes don't only happen to people in previous years but in almost every year there will continue to be people who make mistakes like that;
- For those who don't have emergency funds, it's best to have them immediately
- For those who don't have an investment yet, it's best to have one immediately
- For those who are wasteful and like to waste money, you should immediately change that behavior
- For those who are not yet good at tracking daily - weekly - monthly expenses, you should start trying to do that

in this new year, let us change our nature from being unable to manage money well, to being someone who is able to manage money well.

[oktana]

its worth noting, that its best to try to set up a second account with a different bank for the emergency funds for these reasons:

1. if main income accounts bank freezes the account they also freeze accounts associated with account holder they hold.
2. if main income accounts bank has a internal error problem or does a bank run.
3. if bank wants to close account spontaneously, access to funds can be delayed from that bank

so by having spare funds with a different bank increases success of having money available in an emergency

Good one. However, the chances of these things happening could really be small… especially if you are not a business and operate just as regular as everyone else. But people who do business that involves a lot of money really need to have a second account because anything can happen, it’s for big amounts that the bank can suspect you for money laundering or anything that could tear down your account (guilty or not).

[sana54210]

Not having an emergency fund is something that even I am guilty of. Honestly, it seems like there’s always a problem that money needs to solve and that’s just how life is. But I totally understand the importance of having emergency funds because you’d never know what will happen in the next minute. However, I am actually investing my money and I do not overspend. Even when I purchase things, I ensure that I really need them before buying. And for tracking expenses, this may not really be needed if you don’t feel like you’re overspending nor like your money goes down too quickly. But then, it could be necessary for further reference too. Well, I do not do it.

Yes, there are probably many people who don't realize that an emergency fund is a must-have, usually those who don't realize it are people who haven't felt something urgent. But don't confuse emergency fund and investment, because I also still see people who still equate it, they still think investment can be used as an emergency fund too, yes it can be used but it has risks too. Just imagine when our investment is in a loss, is it worth selling? I think not. I personally always separate the two, because I have to anticipate things that look trivial but have a very big impact.

Unfortunately, there are also people like me who did have something urgent, and that emergency fund was used, and now they have no money in the emergency fund. The worst thing about the emergency fund is that if you have two things in a row, that means you spend it on the first one, and now you have nothing for the second one.

I had something similar just very very recently, let's not put details in because I do not like that, but lets just say, someone I loved had to have a surgery, and I used a bit of my money, and my boss was kind enough to help me too, and that trouble has gone by, it's healed now, we are doing great now, there is no problem there, however after that one another person I care about got sick and this time even bigger issue, and yet I have nearly no money at all, what am I suppose to do when it comes back to back? That's the real trouble.

[oktana]

Not having an emergency fund is something that even I am guilty of. Honestly, it seems like there’s always a problem that money needs to solve and that’s just how life is. But I totally understand the importance of having emergency funds because you’d never know what will happen in the next minute. However, I am actually investing my money and I do not overspend. Even when I purchase things, I ensure that I really need them before buying. And for tracking expenses, this may not really be needed if you don’t feel like you’re overspending nor like your money goes down too quickly. But then, it could be necessary for further reference too. Well, I do not do it.

Yes, there are probably many people who don't realize that an emergency fund is a must-have, usually those who don't realize it are people who haven't felt something urgent. But don't confuse emergency fund and investment, because I also still see people who still equate it, they still think investment can be used as an emergency fund too, yes it can be used but it has risks too. Just imagine when our investment is in a loss, is it worth selling? I think not. I personally always separate the two, because I have to anticipate things that look trivial but have a very big impact.

Unfortunately, there are also people like me who did have something urgent, and that emergency fund was used, and now they have no money in the emergency fund. The worst thing about the emergency fund is that if you have two things in a row, that means you spend it on the first one, and now you have nothing for the second one.

I had something similar just very very recently, let's not put details in because I do not like that, but lets just say, someone I loved had to have a surgery, and I used a bit of my money, and my boss was kind enough to help me too, and that trouble has gone by, it's healed now, we are doing great now, there is no problem there, however after that one another person I care about got sick and this time even bigger issue, and yet I have nearly no money at all, what am I suppose to do when it comes back to back? That's the real trouble.

But at least you should consider that half bread is better than none. And also, it’s not like you won’t be able to choose which need to solve, you’ll prioritize properly. In this your case, it’s not about you having emergency fund because you had it. It’s just life. Imagine if you didn’t have the emergency funds to even resolve the first challenge? To answer your question, there’s nothing you can do because we don’t control these events. Just hope for the best yet prepare for the worst.

[bitLeap]

Yes, there are probably many people who don't realize that an emergency fund is a must-have, usually those who don't realize it are people who haven't felt something urgent. But don't confuse emergency fund and investment, because I also still see people who still equate it, they still think investment can be used as an emergency fund too, yes it can be used but it has risks too. Just imagine when our investment is in a loss, is it worth selling? I think not. I personally always separate the two, because I have to anticipate things that look trivial but have a very big impact.

Unfortunately, there are also people like me who did have something urgent, and that emergency fund was used, and now they have no money in the emergency fund. The worst thing about the emergency fund is that if you have two things in a row, that means you spend it on the first one, and now you have nothing for the second one.

I had something similar just very very recently, let's not put details in because I do not like that, but lets just say, someone I loved had to have a surgery, and I used a bit of my money, and my boss was kind enough to help me too, and that trouble has gone by, it's healed now, we are doing great now, there is no problem there, however after that one another person I care about got sick and this time even bigger issue, and yet I have nearly no money at all, what am I suppose to do when it comes back to back? That's the real trouble.

First of all, I'm sorry for what you've been through recently, when something attacks the people we love, it's a very heavy blow for sure, sometimes if I can choose I personally would rather feel something than the people I love.
Actually from what you experienced, you have done your best, you have completed the first and indeed unexpected things can come even though we have just felt it. Events like this seem to come very quickly.
Although not always, but I as much as possible to divide my income into 2 parts, emergency fund, savings, investment. For me, these three are different things and are very useful for certain situations.
In theory, I would use the emergency fund then the savings fund. This is just an anticipation, if I have to spend it all at once because of something urgent and then the next problem comes, I will probably do everything possible to solve it.

[lizarder]

Obviously the advice in the OP's post is directed to people who at least have any regular income allowing them to survive and have a little surplus on the top.
If one doesn't earn enough to meet daily needs, he should be focusing on finding a steady income in the first place and worry about all other things later.

That's the problem and people need to think about a fixed income structure when they want to see their finances become much more stable. If they cannot meet their daily needs well then how can they possibly talk further about investment. The main focus must be on how a person can generate a steady income and then try to invest responsibly with a portion that can be adjusted to existing income.

By all means, investing in own business or investing in own qualifications/skills that will help you increase your earnings is also investing. And even if you're short of money, you could still invest your time (aka your most valuable asset) to learn something useful.

We are talking about investment in the crypto space because talking about investment now people will shift their focus to bitcoin. If we develop a business, we should look at our skills to see whether we are able to run it or not because if we are forced to run a business that we are not good at, it will be difficult to develop. When faced with a lack of money, it is necessary to look at how we can take advantage of the existing possibilities because selling assets will be a little riskier.

[Maslate]

everything you wrote in the list is the right thing, and all these mistakes don't only happen to people in previous years but in almost every year there will continue to be people who make mistakes like that;
- For those who don't have emergency funds, it's best to have them immediately
- For those who don't have an investment yet, it's best to have one immediately
- For those who are wasteful and like to waste money, you should immediately change that behavior
- For those who are not yet good at tracking daily - weekly - monthly expenses, you should start trying to do that

in this new year, let us change our nature from being unable to manage money well, to being someone who is able to manage money well.

That will only happen if one changes his perspective about finances, that there is more to save than to overspend. When I say save, that means save for your investment, save for your emergency funds and save for the future by avoiding unnecessary expenses and focus on what are necessary.

If you follow this kind of mindset, I’m sure a lot of us will gain financial success this year which I think is very possible with patience and determination.

[junder]

Obviously the advice in the OP's post is directed to people who at least have any regular income allowing them to survive and have a little surplus on the top.
If one doesn't earn enough to meet daily needs, he should be focusing on finding a steady income in the first place and worry about all other things later.

That's the problem and people need to think about a fixed income structure when they want to see their finances become much more stable. If they cannot meet their daily needs well then how can they possibly talk further about investment. The main focus must be on how a person can generate a steady income and then try to invest responsibly with a portion that can be adjusted to existing income.

That's right, those who don't have a clear income will find it difficult to invest, because even meeting their daily needs may already be difficult or they still lack it because they don't have a fixed income, they have to work to be able to have a stable income, but in my opinion if Currently looking for work is not easy, right? However, I think we should be able to have a job that generates income, because if we don't currently have a job, I think it will be very difficult to survive.

It's true that what you said is that the main focus is that they must be able to generate a steady and clear income, because that way they can meet their needs and maybe they can invest a certain amount, if it is still difficult to meet basic needs, it will be more difficult to invest, p. This needs to be paid attention to, because many people still don't have a job or a steady income.

[Strongkored]

2. NOT INVESTING

Not investing is indeed a mistake but investing without first having savings that will become an emergency fund will be even more wrong. Because in this life it is very possible that there are emergencies that make us have to spend more funds and because we do not have a reserve fund, the usual step will be to sell our investment even though there has been no increase and even worse to sell at a loss.
You must first fulfill all your primary needs, pay off all high-interest debts and also have savings before starting an investment so that you can hold your investment for a long time or until it really grows.

[slapper]

Obviously the advice in the OP's post is directed to people who at least have any regular income allowing them to survive and have a little surplus on the top.
If one doesn't earn enough to meet daily needs, he should be focusing on finding a steady income in the first place and worry about all other things later.

That's the problem and people need to think about a fixed income structure when they want to see their finances become much more stable. If they cannot meet their daily needs well then how can they possibly talk further about investment. The main focus must be on how a person can generate a steady income and then try to invest responsibly with a portion that can be adjusted to existing income.

That's right, those who don't have a clear income will find it difficult to invest, because even meeting their daily needs may already be difficult or they still lack it because they don't have a fixed income, they have to work to be able to have a stable income, but in my opinion if Currently looking for work is not easy, right? However, I think we should be able to have a job that generates income, because if we don't currently have a job, I think it will be very difficult to survive.

It's true that what you said is that the main focus is that they must be able to generate a steady and clear income, because that way they can meet their needs and maybe they can invest a certain amount, if it is still difficult to meet basic needs, it will be more difficult to invest, p. This needs to be paid attention to, because many people still don't have a job or a steady income.

I completely agree with your opinion of investing without a steady income. Hard truth: fundamental needs outweigh investment prospects. I've found that the modern economy doesn't always help folks with intermittent income. A cycle, right? Survival and future planning are difficult without a consistent employment. Yes, obtaining a job today is difficult. Careers are more competitive and difficult than ever

Conversely, I believe in human adaptability. New gig economies and remote labor offer alternate income. Though unconventional, it's a start. This shift in the workforce may help many rediscover their footing. However, policymakers and society must build more inclusive economic settings. Isn't it important to give everyone a consistent income so they can invest and safeguard their future?

[junder]

That's right, those who don't have a clear income will find it difficult to invest, because even meeting their daily needs may already be difficult or they still lack it because they don't have a fixed income, they have to work to be able to have a stable income, but in my opinion if Currently looking for work is not easy, right? However, I think we should be able to have a job that generates income, because if we don't currently have a job, I think it will be very difficult to survive.

It's true that what you said is that the main focus is that they must be able to generate a steady and clear income, because that way they can meet their needs and maybe they can invest a certain amount, if it is still difficult to meet basic needs, it will be more difficult to invest, p. This needs to be paid attention to, because many people still don't have a job or a steady income.

I completely agree with your opinion of investing without a steady income. Hard truth: fundamental needs outweigh investment prospects. I've found that the modern economy doesn't always help folks with intermittent income. A cycle, right? Survival and future planning are difficult without a consistent employment. Yes, obtaining a job today is difficult. Careers are more competitive and difficult than ever

Conversely, I believe in human adaptability. New gig economies and remote labor offer alternate income. Though unconventional, it's a start. This shift in the workforce may help many rediscover their footing. However, policymakers and society must build more inclusive economic settings. Isn't it important to give everyone a consistent income so they can invest and safeguard their future?

of course that's right my friend, basic needs are the main thing, because I think even if they force to invest but with their needs not met it will kill them, so I think before the investment stage they must have a job that can make their own economy and their own basic needs well met, and it's true what you say that the modern economy does not always help people with limited income, because with the current developments there are still people who do not have jobs.

to get a consistent income is of course important because it can help them to survive and prepare for the future well if they have good desires such as investing or saving. but what must be considered is the difficulty of jobs today that have a consistent income, because I myself once got a job with a certain and large monthly salary, but before that I had to pay first to be able to join and with my poor condition it even became a burden on my own mind.

[lizarder]

That's right, those who don't have a clear income will find it difficult to invest, because even meeting their daily needs may already be difficult or they still lack it because they don't have a fixed income, they have to work to be able to have a stable income, but in my opinion if Currently looking for work is not easy, right? However, I think we should be able to have a job that generates income, because if we don't currently have a job, I think it will be very difficult to survive.

It's true that what you said is that the main focus is that they must be able to generate a steady and clear income, because that way they can meet their needs and maybe they can invest a certain amount, if it is still difficult to meet basic needs, it will be more difficult to invest, p. This needs to be paid attention to, because many people still don't have a job or a steady income.

Talking about finances cannot be separated from how a person can make money and the current difficulties because jobs are quite difficult to find, making it increasingly difficult for people to reach the stage of fulfillment in daily life. The economy plays quite a role in human life and when a country's economy is unstable, this can affect the people within it. Investments cannot be made if a person does not have a fixed income because the main focus is how to meet the needs of living with his family.

Therefore, before talking about investment, people must first look at their readiness to meet life's needs. When life's needs are met well, investments can be made regularly using certain methods and the level of confidence in making money from investments is also based on how strong their finances are and if the capital is large, the profits will definitely be greater.

[itorai]

The emergency fund can be saved in the bank or to buy gold. the point is that liquid and liquid quickly with no loss and quickly become money when needed.
gold besides being easily liquid can be and emergency at the same time can be for investment and can be for a luxury

I agree with you that gold investment is often considered by people as a form of value protection, perhaps this is because gold has high value stability. From some information that I get, investors often buy gold because gold has protection against inflation and gold is also considered an item that is easy to sell even in the form of gold bars or jewelry. In the digital era like now investing in gold is very easy, even without physical gold can be invested through financial instruments such as precious metals and gold mutual funds.

[blockman]

And we're not all the same that we're open to investing. While us here, obviously we're all investors and we understand the risk that we take. We can't just dictate that to the other people that they should also invest just as we because one can say that they're afraid to invest and they can't take it on their appetites. Then some might say that they're inspired but never have followed and obeyed what we've said, some are like speculators and they're the ones that actually do the same thing as us and silently investing.

Yeah you got some point mate. The fact that we have different strategies in making money on something we do but we all know that some strategies might work or not on other people as well. Some smart people also did something like improvising other peoples strategy to suit their taste and make it work better than the other.

That's right, we just need to find the right strategy that works for us. If we're not so good but we're inspired in improving and learning continuously, someday you'll hit the perfect strategy for you. It doesn't have to be on an instant correction with those mistakes, it is a continuous and learning process. Like the rich folks, they have never learned it with a single test or experience, it has come long way before they became good with their own businesses, strategies and processes. That's the advantage of someone who's eager to become successful, not getting afraid of risk and failing because he or she understands that at the end of it, there's always the positive effect of it for personal growth.

[JeffBrad12]

That's right, we just need to find the right strategy that works for us. If we're not so good but we're inspired in improving and learning continuously, someday you'll hit the perfect strategy for you. It doesn't have to be on an instant correction with those mistakes, it is a continuous and learning process. Like the rich folks, they have never learned it with a single test or experience, it has come long way before they became good with their own businesses, strategies and processes. That's the advantage of someone who's eager to become successful, not getting afraid of risk and failing because he or she understands that at the end of it, there's always the positive effect of it for personal growth.

should also depends whether we can "afford" it on the way of improving because frankly some people might not be that lucky enough to have such opportunity in the first place.
its like trading, we can be making mistakes after mistakes and learn from it, of course we will eventually have firmer mental and aptitutude to trade but then again the big question arise, after so many mistakes that we've made so far, do we still have the capital to make money? well if not then all that experiences are just wasted experience since the market is dynamically changing, the experience we learned from the past doesn't necessarily gonna be useful in the future.

[bbigtart]

everything you wrote in the list is the right thing, and all these mistakes don't only happen to people in previous years but in almost every year there will continue to be people who make mistakes like that;
- For those who don't have emergency funds, it's best to have them immediately
- For those who don't have an investment yet, it's best to have one immediately
- For those who are wasteful and like to waste money, you should immediately change that behavior
- For those who are not yet good at tracking daily - weekly - monthly expenses, you should start trying to do that

in this new year, let us change our nature from being unable to manage money well, to being someone who is able to manage money well.

What you say is completely correct. live simply, be yourself, be smart about managing your finances well, if we can manage our money well then we will be free from debt, and can earn more money.

If you are single, don't waste your time learning to manage your finances well because managing money when you are single is easier than after you are married. For friends who are still single, take advantage of this opportunity to build assets.

If you are married and have children, teach your children from an early age how to manage finances, if you follow the school mindset then the results will not be much different from most graduates today. Minimum mathematical (financial) mindset 1+1=5

[naikturun]

some may take issue with 2 to 4, I think emergency funds can be obtained if we can control points 2 to 4, what most people do is not invest, and prefer to spend their money on themselves.
If I have income I prefer to save most of it to reinvest, so the comparison is possible, 40% for expenses and 60% for investments.

[junder]

That's right, those who don't have a clear income will find it difficult to invest, because even meeting their daily needs may already be difficult or they still lack it because they don't have a fixed income, they have to work to be able to have a stable income, but in my opinion if Currently looking for work is not easy, right? However, I think we should be able to have a job that generates income, because if we don't currently have a job, I think it will be very difficult to survive.

It's true that what you said is that the main focus is that they must be able to generate a steady and clear income, because that way they can meet their needs and maybe they can invest a certain amount, if it is still difficult to meet basic needs, it will be more difficult to invest, p. This needs to be paid attention to, because many people still don't have a job or a steady income.

Talking about finances cannot be separated from how a person can make money and the current difficulties because jobs are quite difficult to find, making it increasingly difficult for people to reach the stage of fulfillment in daily life. The economy plays quite a role in human life and when a country's economy is unstable, this can affect the people within it. Investments cannot be made if a person does not have a fixed income because the main focus is how to meet the needs of living with his family.

Therefore, before talking about investment, people must first look at their readiness to meet life's needs. When life's needs are met well, investments can be made regularly using certain methods and the level of confidence in making money from investments is also based on how strong their finances are and if the capital is large, the profits will definitely be greater.

That's true currently looking for or getting a job is difficult, because this is what happens in my country. The large number of unemployed cannot be hidden because job opportunities are limited too. but if we have a good mindset of course we must be able to take advantage of current technological developments, because current technological developments make everything easy to access or do,  including making money  there are many ways to make money by utilizing current technological developments but for this it depends on yourself who carries it out.

I agree with you, if basic needs or basic needs have been met in the sense that there are no major shortages then investment can be carried out consistently, which must also be owned because if investments are carried out inconsistently, they are vulnerable to losses,  and before making an investment, of course there must be learning, understanding and knowledge about investment because it is impossible to make an investment without the slightest knowledge, it is the same as lying.

[lizarder]

That's true currently looking for or getting a job is difficult, because this is what happens in my country. The large number of unemployed cannot be hidden because job opportunities are limited too. but if we have a good mindset of course we must be able to take advantage of current technological developments, because current technological developments make everything easy to access or do,  including making money  there are many ways to make money by utilizing current technological developments but for this it depends on yourself who carries it out.

You and anyone else will decide to live independently through alternative paths and currently the availability of work does not have to be an excuse for anyone not to develop. Even though jobs are difficult to find, people have to find ways to get out of the economic pressure and existing technological developments make it easier for people to find income. But it takes skill and you have to understand the technology itself because when we know how to make money it will be easy to do it.

I agree with you, if basic needs or basic needs have been met in the sense that there are no major shortages then investment can be carried out consistently, which must also be owned because if investments are carried out inconsistently, they are vulnerable to losses,  and before making an investment, of course there must be learning, understanding and knowledge about investment because it is impossible to make an investment without the slightest knowledge, it is the same as lying.

Basically what makes people become more burdened is because they are unable to meet their family's needs, so pessimistic thoughts will arise about doing anything. So before getting involved in many things such as investment, we should look at the position of the financial structure first and then look for patterns to get involved in investment. When our daily needs are met properly, when we invest, we don't have a burden, so we can focus more and not place risks in it.

[pawel7777]

Basically what makes people become more burdened is because they are unable to meet their family's needs, so pessimistic thoughts will arise about doing anything. So before getting involved in many things such as investment, we should look at the position of the financial structure first and then look for patterns to get involved in investment. When our daily needs are met properly, when we invest, we don't have a burden, so we can focus more and not place risks in it.

That's the thing. It's easy to set up and maintain healthy financial habits if you have a nice surplus of your regular income over your expenses. But all the advice regarding emergency fund and investing is pointless when one does not earn enough to meet their needs.
That's why probably the most valuable advice, especially for younger people, is to "invest in yourself", i.e. get a set of marketable skills which will boost your income and make it way easier to manage your money or maybe even retire at relatively young age. Being on a low income your entire life can be a real nightmare.

[Dewi Aries]

some may take issue with 2 to 4, I think emergency funds can be obtained if we can control points 2 to 4, what most people do is not invest, and prefer to spend their money on themselves.
If I have income I prefer to save most of it to reinvest, so the comparison is possible, 40% for expenses and 60% for investments.

Spending money on yourself is not wrong, because of course everyone should be able to pamper themselves and that is for their own satisfaction. However, what you have to pay attention to is that most people who don't invest may be there are several things that make them unable to invest, namely their income is not enough or they don't have a job that produces a steady income at all, it could be that they already have a job that produces an income. but of course there are needs that must be met with certainty and if their income is limited then it is natural that they cannot invest.

Here we are discussing income which is synonymous with money, money can change a person's attitude, right? You yourself are basing it on IF, "If I have income" this is just if, everyone who has money tends to have different thoughts, so there is a possibility that you will also be like that and feel that way. Even though you prefer a larger investment, that doesn't mean you won't have economic problems, right? So in my opinion there's no harm in spending the money you have as long as it doesn't harm other people. What's wrong with that? and I myself have a fairly high income, but I share it fairly, namely 50/50. because I know there could be problems in our daily economy. Moreover, saving or investing doesn't have to be a high amount, we can do it, if you can't, don't force it.

[blockman]

That's right, we just need to find the right strategy that works for us. If we're not so good but we're inspired in improving and learning continuously, someday you'll hit the perfect strategy for you. It doesn't have to be on an instant correction with those mistakes, it is a continuous and learning process. Like the rich folks, they have never learned it with a single test or experience, it has come long way before they became good with their own businesses, strategies and processes. That's the advantage of someone who's eager to become successful, not getting afraid of risk and failing because he or she understands that at the end of it, there's always the positive effect of it for personal growth.

should also depends whether we can "afford" it on the way of improving because frankly some people might not be that lucky enough to have such opportunity in the first place.
its like trading, we can be making mistakes after mistakes and learn from it, of course we will eventually have firmer mental and aptitutude to trade but then again the big question arise, after so many mistakes that we've made so far, do we still have the capital to make money? well if not then all that experiences are just wasted experience since the market is dynamically changing, the experience we learned from the past doesn't necessarily gonna be useful in the future.

Nah, I don't think that all of those experiences are going to be wasted at all. It depends on how you're going to apply that to yourself but with that perspective that you've mentioned, it's really going to be wasted at all. Yes, the market is changing and it is dynamic but as a person, you're also adaptable and that's not going to stop you from learning, improving and adjusting with the conditions that you're ever dealing with. That's why I have said that it is an advantage for someone if he's got that much experience and applies it well to his/her finances.

[junder]

That's true currently looking for or getting a job is difficult, because this is what happens in my country. The large number of unemployed cannot be hidden because job opportunities are limited too. but if we have a good mindset of course we must be able to take advantage of current technological developments, because current technological developments make everything easy to access or do,  including making money  there are many ways to make money by utilizing current technological developments but for this it depends on yourself who carries it out.

You and anyone else will decide to live independently through alternative paths and currently the availability of work does not have to be an excuse for anyone not to develop. Even though jobs are difficult to find, people have to find ways to get out of the economic pressure and existing technological developments make it easier for people to find income. But it takes skill and you have to understand the technology itself because when we know how to make money it will be easy to do it.

as I said before, if they have a good mindset then they can take advantage of current technological developments. and what you say is true, even though looking for work is difficult, that is not an excuse, because of course everyone wants their life to develop financially or economically, many young people still don't have a decent job so it's not surprising that many young people are too lazy to work because it is difficult to find work at the moment, I have experienced this where I spent weeks looking for work by applying here and there to the point that I myself felt tired which made me shed tears, because I felt how difficult it was to find work.

I agree with you, if basic needs or basic needs have been met in the sense that there are no major shortages then investment can be carried out consistently, which must also be owned because if investments are carried out inconsistently, they are vulnerable to losses,  and before making an investment, of course there must be learning, understanding and knowledge about investment because it is impossible to make an investment without the slightest knowledge, it is the same as lying.

Basically what makes people become more burdened is because they are unable to meet their family's needs, so pessimistic thoughts will arise about doing anything. So before getting involved in many things such as investment, we should look at the position of the financial structure first and then look for patterns to get involved in investment. When our daily needs are met properly, when we invest, we don't have a burden, so we can focus more and not place risks in it.

It's normal for them to have pessimistic thoughts, because with their economy not being able to fulfill it properly, this makes them think for themselves. In my opinion, if they can't fulfill their basic daily needs or the economy is still lacking then they don't have to force investment, because of this. it involves money and of course if their needs and the economy haven't improved it means they don't have enough money, also sometimes when their finances improve it's only enough to meet their basic needs and the economy, so you don't have to force yourself to do this, I think everyone can't do this if their finances are unstable.

[Sanugarid]

I agree with what you said, they have points and what often happens there is the failure to track expenses. Most of us just spend as much as we want while having a budget or money without thinking about it properly.

[lizarder]

That's the thing. It's easy to set up and maintain healthy financial habits if you have a nice surplus of your regular income over your expenses. But all the advice regarding emergency fund and investing is pointless when one does not earn enough to meet their needs.
That's why probably the most valuable advice, especially for younger people, is to "invest in yourself", i.e. get a set of marketable skills which will boost your income and make it way easier to manage your money or maybe even retire at relatively young age. Being on a low income your entire life can be a real nightmare.

In essence we can easily manage our expenses and income if we have a good financial structure, although sometimes people who have fairly stable income are much more wasteful in spending on things they consider important. An emergency fund is still considered much more important even if someone cannot generate a stable income because at least the amount of instability can be used for much more productive things. Investing in themselves is related to what they are able to do and perhaps there is a need to have self-skills.

I agree with that statement and indeed the younger generation must be able to improve their skills to make money because without skills it will be much more difficult for someone to reach the stage of financial freedom through whatever job they are involved in. Managing money is not as easy as it sounds, but that doesn't mean it's impossible to change bad habits into better and more targeted ones.

[alankasman]

and indeed the younger generation must be able to improve their skills to make money because without skills it will be much more difficult for someone to reach the stage of financial freedom through whatever job they are involved in. Managing money is not as easy as it sounds, but that doesn't mean it's impossible to change bad habits into better and more targeted ones.

And changing bad habits into better ones is not easy and not a fast process as long as the young generation has no goals and no motivation to change.
What I mean by that is that goals and motivation are needed as a starting point, which is then done with the skills you have.
If daily habits depend on parents, such as the need to eat and drink, education is 100% thought of by the parents, it is very difficult to change unless you are in a really tight situation. At that time his brain will think and that's when it all starts.

[lizarder]

And changing bad habits into better ones is not easy and not a fast process as long as the young generation has no goals and no motivation to change.
What I mean by that is that goals and motivation are needed as a starting point, which is then done with the skills you have.
If daily habits depend on parents, such as the need to eat and drink, education is 100% thought of by the parents, it is very difficult to change unless you are in a really tight situation. At that time his brain will think and that's when it all starts.

The bad thing in question might be how a person can change his lifestyle for the better, for example having criteria about how to place goals in the self -development process in the skill area. The purpose and motivation to change must be in the background as a goal to change lifestyle for the better, without good preparation and financial plans generation of young people will be increasingly difficult to develop because at this time the availability of jobs is so difficult.

There are limits when someone depends on parents and maybe parents will only bear our burden to the high school or college level education process. After that we are required to find our own source of income by working, from this, at the beginning we began to be responsible for ourselves before going to a more responsible level of life.

[Gormicsta]

some may take issue with 2 to 4, I think emergency funds can be obtained if we can control points 2 to 4, what most people do is not invest, and prefer to spend their money on themselves.
If I have income I prefer to save most of it to reinvest, so the comparison is possible, 40% for expenses and 60% for investments.

That's an excellent notion, and I think your investment and budgeting methods are highly disciplined and sensible. Although there are others who contend that you ought to prioritize self-indulgence and live in the present, I believe your long-term approach of allocating the majority of your earnings to investments and savings makes sense. After all, you're positioning yourself for financial security and a better future if you can keep your spending under control and make smart investment decisions.

[Miles2006]

Most of the mistake have seen people make is overspending and emergency funds mostly lack of emergency funds, sometimes people don't intentionally spend and forgetting to save but due to expenses of family needs and other things make people spend their money and in a situation where the salary is not enough to take care of the family and the current economy can hinder saving for emergency purpose, in this situation multi task will be the best for such person like if you settled for less last year it's best to work for more this year to avoid such mistake, multi working choice is just the best and this is where investment can be introduced to such person.
Overspending is just too common and sometimes you feel like your friends spend same amount but the work and pay differs so from my observation a lot of people spend their money due to influence from friends, my best opinion this year for everyone never settle for less.

[slapper]

And changing bad habits into better ones is not easy and not a fast process as long as the young generation has no goals and no motivation to change.
What I mean by that is that goals and motivation are needed as a starting point, which is then done with the skills you have.
If daily habits depend on parents, such as the need to eat and drink, education is 100% thought of by the parents, it is very difficult to change unless you are in a really tight situation. At that time his brain will think and that's when it all starts.

The bad thing in question might be how a person can change his lifestyle for the better, for example having criteria about how to place goals in the self -development process in the skill area. The purpose and motivation to change must be in the background as a goal to change lifestyle for the better, without good preparation and financial plans generation of young people will be increasingly difficult to develop because at this time the availability of jobs is so difficult.

There are limits when someone depends on parents and maybe parents will only bear our burden to the high school or college level education process. After that we are required to find our own source of income by working, from this, at the beginning we began to be responsible for ourselves before going to a more responsible level of life.

Personal progress takes time. Brick-by-brick foundation building, notably for skills and finances. The job market is tight, but adaptation and resilience are your best friends. Think like chess and plan several moves ahead

Dependence is a phase, not a lifetime. Thank goodness parents give us a head start, but we must grow up. From being supported to supporting is scary yet exciting. Finding balance between earning, studying, budgeting, and dreaming is key. Remember that each step toward self-sufficiency empowers you. Accept the challenge since it shapes your character and future