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.
The first part of the discussion ca be found here.
So, here are 20 worse things that you can so to mismanage your money.
11. You have invested too much into 1 asset.
12. You are investing only in insurance.
13. You do not have a spending plan.
14. You are taking loans without knowing the full scale of payments.
15. You sign contracts you do not understand.
16. You loan money to everyone.
17. You buy stuff you do not use.
18. You invest money you can’t afford to lose.
19. You invest into something that sounds too good to be true.
20. You trade without trading signals.
11. You have invested too much into 1 asset.
Have you bought too much shares of only 1 company? Have you put too much faith in oil or gold only? Well, then you have made a huge mistake. Never put all of your faith and money into one asset only. What if the price for it goes down? You are going to lose all of your investment.
12. You are investing only in insurance.
In today’s world investing is a regular deal. And you need to really think about what to invest in. You need to make smart moves. And while investing in insurance is definitely one of them, do not limit yourself to it. Conduct your own research in order to find out what are the best investment options in the market and see your profits grow.
Do not forget about insurance though.
13. You do not have a spending plan.
Are you prone to unintentional and unplanned purchases? Well, then I have bad news for you – you are not the best at planning your finances. You need to make up a trading plan and really stick to it. If you are going to make unplanned purchases, and big ones, you are never going to be able to save up and invest as you are never going to have any money.
14. You are taking loans without knowing the full scale of payments.
When you go to the bank and ask for a loan it is doubtful that you are going to ask to see the full amount that you are going to return when it is due. But it is something that you have to do. Ask the bank employee to count – you are going to take $15 thousand for 4 years. How much are you going to have to pay off? How much money are you going to overpay? The best question you can ask while taking out a loan.
15. You sign contracts you do not understand.
… or have nor read fully. Remember – fine print! Fine print…
16. You loan money to everyone.
Did your aunt ask you for money… again? Mother wants to renew a bedroom in an old house? Nephew needs a new phone? And they all come to you for money? Well. At some point you are going to have to say no otherwise they are going to keep on coming for your money.
17. You buy stuff you do not use.
Have you bought yourself a cool laptop when all you really do is play games? A new phone when all you do is call and send messages? Well, you overpay for the features that you are not going to use. And they cost you dearly. Stop doing that.
18. You invest money you can’t afford to lose.
If you are making investments without assessing the risks, it is one thing, but when you do that with money you can’t really afford to lose… well. I have to say, you have made several wrong turns in your life.
19. You invest into something that sounds too good to be true.
You invested into something that sounded sooooo cool and sooo good? Well, chances are that you have been tricked into something that is not going to pay off just like you though it would. And unfortunately you are most likely to lose all of your investment.
20. You trade without trading signals.
Of course you can rely on your vision and your analysis of the market, but in the end we all need something to rely on. And in the markets trading signal is just the thing that you can really rely upon.
