Avoid eight money mistakes

MONEY is a great tool that needs to be properly managed. It can bring anxiety if it’s not properly handled and pay dividends if its laws are adhered to.

MONEY is a great tool that needs to be properly managed. It can bring anxiety if it’s not properly handled and pay dividends if its laws are adhered to.

Everyone should be financially astute since we all use money; it could be in everyday life or in business. I write this article as an answer to some questions that I have had from readers in my previous writings.

History proves that despite of challenging times, people can still prosper. In fact, most millionaires are made during challenging times.

For example, Joseph of the Bible rose to prominence because he foresaw an imminent drought and brought an answer to the hunger that people were faced with. So, the current state of financial affairs in the country should not be deterrent to your wealthy destiny.

Today let’s focus on the mistakes that people make with money and how we can possible avoid that.

Succumbing to card stacking Buying baits are all over retail shops. Some would say buy at zero deposit. Fast loans for so and so. Some say 36 months to pay and so forth. Most people don’t look below of what the stack card says.

For example a stove worthy $450 on cash basis can add up to $1 260 in 36 months. Your mind was only tricked seeing $35 to pay per month and thinking that’s an affordable amount to pay, but you are wasting part of your life. Be wary of these baits.

Living from hand to mouth Living from hand to mouth is dangerous. At times it’s not because of our doing, but it has implications. The worst thing that happens is when trouble sticks.

You are left with less options other than to borrow as to cover up. This problem is caused mainly by two major things:

Not saving,

Not having multiple streams of income.

Not tracking where your moneys goes

Most people, because of their meager salaries, they would rather not budget. That’s a great mistake that has made people to have money problems. If you don’t budget the following might happen:

Impulse buying,

Lack of financial tracking,

Lack of focused buying.

As a result, you are stuck to the consumptive behaviours that has less to do with future investments. You might be earning very little, but the law of accumulated effort postulates that the small parts aggregate to the bigger thing. Small investments will ultimately turn bigger over time.

Not doing away with debt One thing that will keep you bogged down is debt (see last week’s column). Avoid it at all cost if ifs not a good debt. If you are already in debt, I have three things to rescue you out:

Put time tags as to when and how you will pay out all debts,

Don’t suffocate yourself with a lifestyle you can’t afford. Spend within your means,

Have a monthly program how to get out of debt and allocate a percentage from your earnings of how much you will pay towards your debts.

Not funding the non-working years One truth is: As soon as you are born into this world, what’s left for you is to age and die. There are years when one won’t be able to fend for themselves because of old age. At this time, one should be having an account to pay them. What do you do?

Have a savings/ investment account if your employer does not have it for you,

Have a pension account.

Not having a plan The common adage says: Failing to plan is planning to fail. Plan for your money. It’s only when you have a got a fracas with your spouse when you discover that you had not planned for your money. Most fights in relationships it’s because we had not planned, not necessarily that we have less money.

Not understanding that flashy is not rich There is this story in the church circles that is told of a brother who wore expensive suits and was always in vogue, but when he got back home he slept on the flow because he had no bed. Being glittery and glamorous does not mean gold. As I have always said, high spending does not mean good living or wealth.

Not having an education fund for children and yourself Education or learning is inevitable. It could be formal or informal, but it plays a great role. One person once said: “Learn more and earn more.” Stop leaning you stop growing. Even financial literacy has to do with money, to buy books and hire advisors. In everything you could do with your money; set aside a part for your mind and your children’s mind.

For more money tips and advices go to www.successlife.co.zw, call 0772 581 918, e-mail: [email protected]

Jonah Nyoni is an author, success coach and motivational speaker.