Money is essential. It makes life worth living. But placing too much importance on money is not right. Placing too much importance on money leads to money mistakes which can result in being broke. To avoid these mistakes, we share some money mistakes you should try as much as possible to avoid in order to make your money work for you.
You work very hard to earn money and after a few days, it disappears. It is even worse for those who do not earn enough and still engage in frivolous and extravagant spending.
Monthly Instalment payments
You have taken out all sorts of loans from banks, friends and companies. Hence, at the end of the month, deductions are made and there is nothing left for you to spend. And this keeps happening every month. How long will you do this? You should wait until you can afford an item before you purchase it or else, you will continue to settle loans for months.
Living on borrowed money
Every now and then you receive calls for you to pay the money you borrowed. What do you do? You borrow money from other people to pay the debts. This is not a good lifestyle. Very soon, your deeds will catch up with you and people will refuse to lend you money.
Buying a new car
A car is a necessity and not a luxury. Rather than buying a new car, you should get a good used one. This is because a brand new car is quite expensive. You do not want to spend all your money on a car.
Spending too much on a house
Everybody wants comfort. The more money you can pay, the better your chances of renting or buying a good house. However, this does not give you the leeway to pour all your money in a house. Simply look for a nice comfortable apartment that is affordable. If it means relocating, you should.
Living from paycheck to paycheck
This is very dangerous if you live from paycheck to paycheck. When your employer disappoints you, that means you are in big trouble. You will be in a financial mess. Diversify your income source so that you do not rely on just one.