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

[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.