Most people hardly let anyone talk to them about their money, in fact most men see it as an insult on their very fragile ego and most ladies have this feeling that money will always somehow be there when you need it. But in reality we all need to always talk about money and make smart decisions about it.
To talk about money does not mean to start living in frugality and passing all the good things life has to offer. It just simply means knowing fully well what and how to play the money game, it’s always about the Benjamins.
Money mistakes are mistakes we often make in life. At the point of execution it feels so good but few years down the line we will be glad to ask someone to slap us for being so foolish.
Here are a few of those mistakes
1. Failing to set financial goals – I know I am a culprit of this one, sometimes we are so caught up with immediate things that the ability to look up and dream big becomes so difficult. We are all expected to set financial goals. The act of goal setting is something that is so crucial as the world is on a fast lane and before you know it, you are 50 and you are still struggling, so set out time and set that goal. Make sure the goal inspires you.
2. Not saving – most people will always give you the excuse that they don’t save because they don’t make enough, but that is a fools excuse because saving is always possible no matter how little you earn or make. It is always about discipline. The law of money called the Parkinson’s law states that need will always rise to meet money, simply put if you are waiting for more money to come before you save, when that money comes it will also come with more needs. So break that pattern and start saving
3. Buying what you can’t afford to maintain – this is a very delicate ground and I will try to trade carefully. Amongst everything we know about money, I am sure everyone knows this but still they fall prey to it because most people fail to understand that the cost of anything is not just the initial price. The initial cost of anything we buy is just the entry door to a constant world of spending, so check if you can handle the extra cost the thing brings, instead invest the money till you are sure the extra cost wont drain you much.
4. Keeping up with my neighbor – the fact we are humans means the urge to compete is strongly enshrined in our everyday life, but as someone who is looking to live a better and more fulfilling life you have to constantly remind yourself that you are not in competition with anyone. The only competition is with yourself to be a better you than you were yesterday. That your friend got a brand new car does not mean you can’t go and buy a fairly used car. That you don’t have it today does not mean you can’t have it tomorrow, so take a chill pill, you are not in competition with anyone. Just be your self because there is enough space in this world for every sheep to graze in.
5. Borrowing for liabilities – The urge to keep up with life sometimes makes us push our limit so far that borrowing is the the option. I am not against borrowing for an asset but borrowing for liability is just not a cool. The thing with this is that it grows on you, the fact you have done it in time past and successfully paid off the debt encourages you to try again. But it is not a cool plan. Learn to live within your means and be content with what you have.
6. Trusting other people to take care of your finance– I can’t stress this enough, do not trust anyone blindly with your finance , yes there are exceptions to the rule but it is only an exception. Make sure you have full control over your accounts, if you are investing with an asset management company please ask questions and keep an eye on your money, if you are buying treasure bills and Bonds please make sure what your banker tells you has hard evidence to it. Please this money was hard to earn don’t let your laziness make you lose it.
7. Going into debt for a wedding – ladies, I know you have been dreaming about this wedding since your aunty used you as her little angel on her wedding day. You have imagined and dreamt of that perfect wedding in your mind and everything must go according to plan. The only problem with that picture is that it has no Naira sign to it, if you actually saw the Naira sign to that dream wedding I am sure you will reconsider. What will it profit a man to spend all his money on that dream wedding and soak Garri for years after that one day? This is not ideal in anyway, so Please if you two can’t afford the dream wedding wait till you can or better still make it beautiful, beauty has nothing to do with money.
Finally our hearts and prayers are with the people of Ghana in these trying times. May God find a way to console those that have lost their loved ones and heal the land In Jesus Name... Amen.