#Money Mistake 1:
Never borrow money that accrues interest to start a business (except if
you are paying for it through your salary); only borrow to grow your
business. This is because business takes a long time to gain ground and
begin making profit, yet most loans repayments have to be made within a
month of taking the loan or even earlier. Therefore, never borrow money
to start a business expecting that the business will generate income to
pay back the borrowed money plus the interest.
#Money Mistake 2:
Never spend money you haven't received. Don't even promise someone
money based on a promise you have from someone else. If someone tells
you: "Ayodeji, come to my office tomorrow at 9am and pick
#30K"don't
go out to buy items on credit based on this promise, with the hope that
you will pay off your creditor when the promised money comes; it may
not come as promised and this will leave you in problems with your
creditors.
#Money Mistakes 3:
If you want to save, whenever
you receive money, don’t start spending hoping that you’ll save what
remains. Normally what remains is zero because as long as money to spend
is available, the numerous things you can spend it on are also
available. And things to spend on even incite their 'relatives' so that
you spend even more than you had planned.
Before you spend any money, put your savings aside
then spend what is left after saving.
#Money Mistake 4:
When
you get an opportunity to meet a very wealthy person, never ask for
money. Ask for ideas on how to make money. They may even choose to give
you money on their own after seeing that your ideas are great, but let
getting money from them never be your objective.
#Money Mistake 5:
Keeping your seed instead of planting it. Many people stop at saving.
It's very, very difficult to save and have all you need to maintain your
lifestyle especially after retirement. When you save, your savings are
seed; plant it. When you just keep the seed (saving money) some seeds
begin to die (eaten by inflation and the like). That's why I recommend
that you read about the different types of investment vehicles you can
use to grow your savings. I am not necessarily talking about putting the
money in a business, because you can easily lose money in business. I
am talking about putting it in an investment.
#Money Mistake 6:
Never lend someone money you are not willing to lose. By the time you
lend someone money, be contented in your heart that should the person
fail to pay, you will not die. You should not even lose that person's
friendship if they fail to repay the money you lent them. If you feel
the person might fail to pay you and this will not affect your
relationship with them, then lend them money. If their failure to pay
would make you hate this person’s entire clan, please advise the person
to go to the bank.
#Money Mistake 7:
Never append your
signature to guarantee someone on a financial matter if you are not
willing or able to pay the money on their behalf. Do I have to explain
that one? No, it's self-explanatory.
#Money Mistake 8:
Avoid keeping money you don't intend to use in the short-term within easy reach. For instance, don’t walk with
#100K in your pocket when all you plan to do in a day costs
#20K.
Like I mentioned in Money Mistake 3, there are always expenses
available to gobble any money that is within reach, so if you don't want
to lose it, put it away in a safe place.
#Money Mistake 9:
Avoid keeping money in inappropriate places e.g. in socks, under the
pillow, in a pit, in the sitting room, in the bra, in a travel bag that
you will place somewhere in a bus ... impulse buying is a devil that
will keep you busy!
#Money Mistake 10:
Spending money on an
item that you can do without (at least for the time being). These days
when I pick money from my pocket or wallet, before paying for something I
ask myself: What would happen if I didn’t buy this? If I find I can
live with the consequences of not having that thing, I smile and walk
away.
#Money Mistake 11:
Paying an amount for something
that's not the minimum you can get that same value for. In other words,
if you are along lekki road Lagos Boutique and you pay
#5K for a shoe that you can get at
#3K at Oshodi market, that's a money mistake except for those who have achieved financial freedom.
#Money Mistake 13:
Consistently spending all you earn or more than you earn. It's like
having a drum where you have an inlet that's smaller than the outlet. It
will never get full. And should the inlet ever reduce significantly the
drum will run dry. If you do it the other way round and the inlet is
bigger, it will get full and even overflow. Hence, we have to always
ensure we are widening the inlet while narrowing the outlet – all the
time. Your side hustle comes in handy!
#Money Mistake 14:
Thinking about short-term only and forgetting about long-term or
thinking about the long-term and forgetting about the short-term. For
instance, Lydia was told that there's money in land. She saved money
over a long period of time and bought 30 acres of land. Now she has the
land but she is always broke. She is always complaining. She's
disgruntled and she doesn't seem to see herself earning from the land in
the near future. Now, let's ask ourselves: Having 30 acres of land and
no money to feed your family or take a child to hospital, is that wealth
or poverty? I think Lydia only looked at long-term needs and forgot
that she has short-term needs that require money.
What of those who find
they are one paycheck away from salary? Are they thinking about the
long-term needs?
Let’s take stock of our finances. How many
mistakes are you guilty of? Do you now feel better-equipped to do better
with these tips? Good luck, savers! Share this knowledge with your
friends because it will not benefit you if you are selfish with it.
