In the world today, families are classified based on their worth. Where we have the rich, the middle class and the poor. These three classes are classified based on their monitory worth. Some persons belong to the class they are because they either made mistakes or avoided mistakes with the little money they had then.
Here are some of the stupid mistakes we make with money
1. Counting On The Illusive Someday:
Most times we wait for a perfect moment to start putting up savings for the future or investing in a business opportunity. The fact remains that there is no perfect moment, the time to save up something for the future or invest in a business is now. Sometimes persons from wealthy homes instead of kicking off a career for himself or herself wait to inherit parents wealth/business forgetting that the future is clouded with so many uncertainties.
2. Wait Till It Pour Before You Realise You Don’t Have An Umbrella
Most salary earners fail to save up for unforseen circumstances like health and financial emergencies. Believing your income for a particular time frame is for you to provide yourself with your basic needs for that month and not saving for the later is a foul and a very big mistake.
3.Feeding the Monster
This is what I call life of luxury. Most persons when his/her income are high buy both the needs and wants thus living above their means. Economists have always advised that one should live below his income to be able to put up some savings for the uncertain future. We most times acquire resources that instead of adding values to our lives takes the little we have.
4.Believing You are What you drive
Many vehicles are bound in the market today. Acquiring a car on the basis that its what people of your class should drive rather than the purpose of relieving the stress of moving around is a very wrong move. In the world today, new exotic vehicles are manufactured frequently, thus you can spend all you have Getting a modern vehicle for yourself as well as the increased cost of maintenance.
5. Borrowing Trouble
Living below your means is the basic step to avoiding this mistake.
Some persons borrow more than they earn in a month such that they live in debt. Its always advisable not to borrow at all as a popular saying says “those who go a borrowing goes a sorrowing”. Borrowing trouble is common to those who live above their means.