On your path to building sustainable wealth for yourself, there are a few caution signs along the way that you need to look out for,
When we choose to ignore these signs, we end up making a couple of money mistakes and these money mistakes end up sabotaging our goal for financial freedom.
Some of us don’t identify these money mistakes until after making countless others,
For you, your first money mistake must have been the only eye-opener you needed
While some, they are yet to even make a money mistake yet.
Here are some of the fatal money mistakes you should avoid making when trying to build wealth;
1. Waiting too long to start saving or investing:
Most people never end up being financially independent or free because they make this avoidable money mistake,
Which is to wait for the best time or situation to start investing because they mostly think that you need to have a certain amount of money.
Never believe that you don’t have enough to get started with,
When it comes to saving and investing, there is no particular amount best for you to start with.
You can start investing little amounts each on a regular basis,
And keep up the momentum,
It may look futile at first but remember that you have time to your advantage.
2. Investing in what you have no knowledge about:
This is a very common money mistake made by a lot of young people who are trying to build wealth.
The desire to build wealth often leads a good number of us to put our money into a scheme or investment vehicle we don’t even know about,
Mostly because it promises a faster and fatter dividend cheque.
You must have a basic knowledge of how an investment works before you decide to throw your money into it.
3. Misunderstanding your wants and needs:
Spending has got to be the latest trend in society today, as many people now feel good working long hours just to spend money on the next flashy item.
It really isn’t an offense to anyone to decide to use your hard-earned money to buy anything they want,
But before you spend a dime on anything, ask yourself this, “Do I really need this?”
We spend a lot of money on things we think we need, whereas they just want.
Learning to spend money for what it can bring and not just for what it can buy is a key to building wealth.
4. Living paycheck to paycheck:
If a missed paycheck can put you in a disastrous situation, then you are already making a very big money mistake that even you can attest to.
Most times, the cost of this is due to frivolous spending, or the unavailability of other streams of income.
Not having a second or third stream of income is not acceptable and if you are yet to have more than 1, start making the effort now and save yourself.
5. Track your expenses:
To avoid the dangers of overspending, you need to start by monitoring the expenses that add up quickly.
Think carefully before adding a new line of expenses, once in a while, check your bank statement and see what has been taking your money and justify making amends.
Remember, “You can pay for it doesn’t mean you can afford the payment”
These are a few money mistakes that can prove to be fatal if you choose to neglect them,
And the earlier you start to avoid these mistakes, the better your chances of building wealth and gaining financial freedom.
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