Even a low-income earner can become financially wealthy; studies show that the correlation between income and wealth isn’t as direct as previously thought. The tale of a not-so-popular retiring lawn mowing man becoming a millionaire intrigues many who hear it. People wonder and get surprised when they hear his story but how he made his fortune is actually not a mystery. He practiced a number of good habits successful investors have been living with. More than that, he was able to avoid common financial mistakes:
- Lack of financialgoal. Financially savvy people never forget to make a plan and when they do, they work through it up to the end even if hindrances and misfortune come their way. They keep the ball rolling amidst the setbacks they are facing because they know they will learn from themjust like financially mature people do.
- Inability to live within one’s means. Financially savvy people don’t fall into this trap. They live within their means and don’t find comfort in credit cards because for them, spending starts and stops within the budget and using cash helps them stick to it.
- Lack of self-discipline. Most people want to save money but they usually can’t seem to stop spending on unnecessary things all because they lack self-discipline. Wealthy people on the other hand know when to stop spending even if it means changing their lifestyles like minimizing eat-outs, buying only the food that they need instead of stuffing up their fridge with future leftovers and conserving energy to cut down electric bills.
- Believing in rich quick schemes. For financially savvy people, the key to wealth is hard work and making wise choices over time. There is no such thing as instant financial freedom unless you win the lotto jackpot.
- Impulse buying. A wise spender knows if a purchase is right or not. They spend time in questioning their purchases.
- Believing in retail therapy. Financially savvy people don’t go shopping to make them happier. For them, there are healthier and more productive ways to feel better.
- Spending “bonus money”.For them, bonuses are an add-up to their savings.
- Wasting food. Most people buy take-outs or prepare extra food to take the next day. Wise people use up all the food available in the fridge and only buy what’s needed. Left-over foods or foods that are expired is money wasted.
- Avoiding necessary expenses. Most people make the mistake of buying a brand new car instead of just having their old car serviced. Smart and financially savvy people knows when to trim the fat but not the essentials
- Mistakes are not meant to set them off track. For the successful people they won’t let a setback stop them however minor or major it is, they learn from it and get back on their goals.
To be feeling financially free requires thinking differently and wisely about money and that also means avoiding the common financial mistakes mentioned above. What do you think?