Common money mistakes are a regular occurrence. You spend more than you ought to. You are simply giving money away. If you have more than enough money, that is not an issue. There are two main money problems:
- Not enough money
- Too much money
Most of us belong to the first group. There are folks in the middle. They have enough money. They can meet their financial obligations as and when due, with not much left. More often than not, they face the problem of not enough money.
I just wrote a book – 101 Common money mistakes to avoid: and how to fix them. This handbook is inspired by a WhatsApp post I received about 14 money mistakes. As I went through the list, I decided to come up with more. The list kept growing until I crossed the 100 mark. There are still more out there.
Being prudent with money is not being a miser or cheapskate. It is simply getting more with less. You get to do the same things but spend less. It could also mean delaying gratification; so that you get what you get really want on a more sustainable basis.
If money is short, it sure hurts to find what you bought cheaper somewhere else or going on sale thereafter.
When it comes to solving money problems, most people focus on making more money. We all ought to make more money. However, while you are at it, why not make more money by spending less on what you want. If you can cut your expenses by 30% by paying less for stuff by making smart strategic decisions, your income just went up by about 30%. You can use that money for something else.
If you reduce expenses by 30% and increase income by 25%, you are ahead by 55%. That moves you forward faster rather than focus only on making more money. I have bought flight tickets and booked for hotels at a half price several times. That frees up money to invest or eliminate budget deficits.
The beauty of getting more with less is that it frees up your cash flow and relieves you of financial pressure. Being under consistent financial pressure is not a good place to be. It affects every aspect of your life. The saddest part is that your days are consumed with money worries rather than gratitude, meditation and creative thinking. Rather than focus on making progress, you are trapped by past financial decisions. The more you worry, the poorer decisions you make since not much creative thinking is going on. It is a vicious cycle.
I will be sharing some of the 101 Common money mistakes in the coming days
