Financial mistakes are caused by individuals, the level of your financial prosperity is due to the level of your understanding. Financial prosperity doesn't work with prayers of I want to be rich, it requires some hard work, diligence, determination, and adequate knowledge of finances.
Being financially independent is an individual race, you are expected to work for your own money and earn a living yourself not depending on your generation's wealth. Some of the rich children out there rely so much on their parent's wealth and believe they don't need to work for theirs. Anyone with this motive is lacking basic knowledge about financial prosperity.
During my secondary school days, I had an encounter with a girl who joined my school for her final examinations. In some of our discussions, she made mentioned how financially stable her parents were, and with her appearance, we believed her because their family driver does come to drop and pick her up every day unlike some of us that walk to school. She told me and some other girls that her parents have lots of investments that would serve them, the children, and the grandchildren yet unborn therefore she doesn't need to work to make a living of her own.
After her speech, I looked at her and smiled then I asked her if she had any knowledge of financial prosperity. Her response made me realize her view on life and financial independence, it was then I told her not to rely on her parent's wealth. As a friend, I advised her to work on her own and earn a living for herself, and then if her parents give out theirs to her it will be an addition then she can walk with her head up that she achieved greatness in life.
The 10 biggest financial mistakes we humans make
Debt :-Some people see debt as a normal thing, but I can say it isn't normal at all, debt can make one lose his or her integrity. Debt makes one run from pillar to post with no peace of mind when you are due to pay back and you couldn't.
No budget :- Living life without a proper financial budget is like opening door to multiple losses, take your time to outline your income and expenditure to keep eye on your profit and loss.
No savings :- The right attitude to our finances is one of the best ways to live a free financial crisis life in which savings happen to be one of the right attitudes. Saving is protecting yourself against the rainy day that is against unforeseen circumstances, your savings will be your shield in times of financial hardship but many people don't know this.
Impulse buys :- This is one big mistake that people make in their financial life, spending on unnecessary things and sudden purchases of stuff like groceries, shoes, etc. Impulse buying is the sudden and immediate purchase of a product without any pre-shopping intentions.
Not investing :- Investment is a lifesaver, it is building a stable financial future for yourself and the generation to come. Investment creates potential for long-term returns. Not investing creates a void in one's financial life.
Overspending :- Overspending is one of the causes of the financial crisis people face today, you want to buy everything including the things you don't need. Such individuals will run into a loss, contentment is the remedy for overspending.
No financial plan :- Financial planning is very crucial in human life, an individual who doesn't have proper financial planning will continue to struggle financially.
Lifestyle inflation :- This also brings one's financial life down, this is a phenomenon in which one's spending goes up every time there is an increase in income. Anytime you have a raise in your financial life, you would want to upgrade your lifestyle this is one of the mistakes people made.
No emergency funds :- Many fail to understand the importance of emergency funds, they took it with levity hand because they believe it isn't necessary. They think they have control over their money but they don't and when unforeseen circumstances happened they end up in debt.
Not tracking expenses :- Some people call tracking your expenses stingy but it's not, it is only you making sure you are not overburdening your income with unnecessary expenses. It is keeping an eye on the incoming money and the outgoing money which is your income and expenditure.
These are the mistakes we need to put in check as humans and make adequate corrections. Once we identify all these listed points as mistakes, correcting them wouldn't be a problem, and then a financially stress-free life will be achieved.
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