Yep, most people make them let’s be honest, the majority of people in this world are not financially savvy. No one. But I’m going to talk about three financial mistakes that most people will probably make in 2013. And yet you probably made them in 2017 as well. The first financial mistake as you consume, not invest.
Here’s a challenge for you all. Go shopping for the day with your family or friends, anyone, and don’t buy a single thing. 90 percent of you won’t be able to do it. Try to think of the last week when you did not consume something that wasn’t a need. Again, 90 percent of you won’t be able to think of one. But to be honest, I don’t blame you.
We are constantly surrounded by stimuli, encouraging us to consume the moment we step out the door. In fact, companies have become so good they don’t even have to wait for us to step out of our house before they bombard us. We’ve got adverts when we turn on the TV and we’re listening to the radio, even when we’re watching YouTube videos and with the way we use technology in the modern era. Let’s be honest. This non-stock, once we’ve broken out back, having earned our hard earned income, we’re straight to the thought. What can I buy with that money? It’s a nonstop battle and it’s one we need to get out of.
We don’t even have to be in that battle in the first place. Here’s what I recommend. Instead of going straight to consumption, teach yourself to invest that money. The beauty of the stock market is that you can become an owner in pretty much any great business. And when you’re an owner of a company, you get paid for not having to do anything. So the main point I want you all to take away is term to not consume. Now, financial mistake number two is you won’t create a budget. It’s one of those things that we’ve all heard of, but hardly anyone actually takes advantage of. First of all, with a budget, you know, the money that is going in and going out and you’ll be a lot more aware of your spending. You generally think about something a bit more before you go and make a purchase. Compare this to someone who hasn’t taken a space and the day to think about the money. They won’t put as much value on that and will be more inclined to spend the final financial mistake you make as you often think about insurance. Notice I said, I think it doesn’t mean you have to get insurance, but for some people it is vital that you have insurance. For example, a sole income only male wife and four kids. We would like to dream that will be around forever.
But the truth is, accidents do happen in peace of mind can be a beautiful thing knowing that your kids and wife will be taken care of. OK, don’t be part of the majority that will make these mistakes. Guys, go out of your way to learn more about money and the way you handle it.