Managing your finances is one of the toughest tasks out there. There is a reason for us to be discussing our personal finances and ways to manage them so much – it is tough, that is all. But in the end it is something that we have to do as there is no way that we can be successful without ever having to think about managing our money.
But there is an opposite side to it all – you can mismanage your money or do something to harm your net worth without intention to do so. And we need to be very careful about our money. Especially in the times like we are facing today.
So, here are 20 worse things that you can so to mismanage your money.
1. You are waiting to cash in the paycheck.
2. You are spending money you do not have.
3. You make purchases you can’t afford.
4. You live above your means.
5. You only rely on cash while travelling.
6. You make donations and investments over the phone or e-mal.
7. You shop while distraught.
8. You might miss your savings deadlines.
9. You are using unreliable financial advisors.
10. You bought illiquid assets.
1. You are waiting to cash in the paycheck.
Or you are waiting to unload your salary card – however the system works with your employer it is always better to plan with cash lying right in front of you. We are more likely to spend money we do not see rather than cash that we hold in our hands. In the era of credit cards it is hard to imagine but dealing with cash makes us save more money as we tend to see how much we actually spend.
2. You are spending money you do not have.
Credit cards are evil. Loans are evil as well. They make us spend more money that we do not have at the moment which takes us up in the vicious cycle – we spend money we do not have and pay it off with our paycheck which leaves us with no money… see the pattern?
3. You make purchases you can’t afford.
And why would we ask for a loan? To make a purchase too big and too expensive when we can’t afford it. That is one of the biggest mistakes that we can possibly make. Buying a car or a house when it is too expensive for us – who would something like that? Well, a lot of people, and we need to not be among them if we want to be successful.
4. You live above your means.
Cars and houses are one thing, but you might be living way above your means. You are shopping in stores above your price limits, you eat out way too much and you never hesitate to buy yourself something pretty and expensive. That is not the healthiest approach towards your money.
5. You only rely on cash while travelling.
Domestic spending of cash might make a lot of sense. But while travelling you need to remember that not only you spend more, as you are not at home, you are also limited in access to your money. And carrying around all of your cash might result in unfortunate situations. Use credit cards and safes – the best thing you can do while abroad.
6. You make donations and investments over the phone or e-mal.
Of course making business over the phone is a regular deal for us as well as dealing with business partners over e-mail. But unfortunately those are also the ways that con-artists use to scam people for money. Never donate and invest money over the phone with people you do not really know especially when you have never heard of the organization that they claim to be working for.
7. You shop while distraught.
Shopping while being emotional might result in unnecessary purchases that you do not really need. And if you are going to lose money by returning everything you have bought later, you are definitely going to lose time. Time that you might have spent trading and earning.
8. You might miss your savings deadlines.
Set a date until which you are to invest into your savings account. And follow that date. Do not miss out and think – I am going to compensate it all with the next paycheck. If you can’t stick to your own plan, you can’t save up at all.
9. You are using unreliable financial advisors.
Financial advisors might bring a lot of prosperity into our lives. But a bad advisor is only going to cheat you out of your money leaving you with one question – where did I do wrong?
10. You bought illiquid assets.
One of the worst things you can do is buying assets that you are not going to be able to unload when the time comes. You might have invested into an unpopular currency or bought a dilapidated house – whatever you did always think about selling before you buy. It might change your mind about a lot of things.
