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

[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.

[1714696363]

1714696363

[1714696363]

1714696363

[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.