Money Mistakes that you MUST avoid!
Financial success is influenced by they way in which you think about money. Some people don’t spend enough time thinking about money, they avoid doing their financial planning and others focus on the wrong things, like scarcity instead of abundance. How you think and feel about money plays a big role in your real life experience. It starts with you. And that is the good news, because we can work with you and your beliefs. Here are some of my observations, that have identified the four biggest mistakes that people make about money. I want to share this, because your must avoid these simple to make, money mistakes. All are easily changed with a shift in how you think. Here we go, check yourself on each one listed here:
1. I will save when I earn more
I hear this soooo ofent and the truth it that it just doesn’t happen. It’s easy to get into the mindset of “when I have more money, I’ll save money”, but, unfortunately, that is not how it works. The savings habit need to start NOW (today) no matter what your income level is. Why, you might ask? Because by saving now you will be starting your saving HABIT and in doing that, you are taking control of your finances.
By diverting income to savings instead of only everyday expenses you will have to make decisions about what is really important to you. It will mean delaying instant gratification today for something that will happen in the future. You are planting seeds for your future and you will get out of the “someday I’ll save” trap.
Start by saving 1% or 2% of your income this month. Next month save 2% or 3% and slowly build up your savings rate aiming for a minimum of 10% of your annual income. Slow and steady, consistent action wins the race, but you have to be in the race. Of course, you can also join the SAVING CHALLENGE!
2. Not focusing on creating wealth
What are you focusing on? The society that we live in, often brings our focus to be on things like “keeping up with the Jones’” so that we forget to focus on ourselves and our long-term needs. The Jones’ have the newest car and the biggest house and the latest gadget that comes along, but are they planning for a financially secure future? That’s the million dollar question and the answer is, probably not! What you focus on, you will attract. Think about how powerful that is, in both positive and negative ways.
A financial secure future means that you are focused on building a nest egg that will pay you in retirement. Shift your focus away from spending to investing so that your retirement fund can pay you when need it.
3. No financial plan for the future
When you are failing to plan, they says that it means that you are planning to fail. Interesting observation. To wander aimlessly without a plan will get you nowhere. It will keep you going around in circles, feeling frustrated. Having a clear financial plan will support and guide you along the path to your own financial security. It will give you a vision for where you are headed and how to get there. Without a plan in place it’s too easy to get pulled off course and to be tempted to buy the latest and greatest on offer.
Calculate how much you need to save to retire, or travel or send your children to university or to buy that dream house. Don’t leave it to chance because a plan will get you to your goal. A written plan is best to ensure a massive increase in success rate.
4. Abdicating financial responsibility to someone else
It’s your money. Yes, it can be easy to let someone else handle your finances whether it’s your partner, parent, financial adviser or accountant. Initially money management can feel tedious, but the more familiar you become the easier it gets. The real power lies in knowing where your money is coming from and where it is going to. Think “tracking”!
All too often you read about a famous celebrity who is suing their accountant or adviser because they were cheated out of their fortune. Did they hand over control of their finances? By understanding your figures you can make the right decisions for you and your family. It’s not something that can be left to chance! It’s your future that is at stake here. YOU know where YOU are headed, and you can be excited about that journey.
When you ensure that you avoid these easy money mistakes, you will be on your way to a bright and financially secure future. With money in the bank and plan laid out the possibilities become real AND exciting! It’s life changing. When you get your money sorted, it’s a real game changer for your life!!
If you are ready to shift how you think and feel about money and to avoid these money mistakes, you can book a Discovery Call with me. A FREE 30 minute one one Financial Coaching Session.
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