Don’t blow it: Money management mistakes to avoid
It’s easy to make a small fortune: start with a large one. It’s an old joke, but the truth of personal finance is that, whether you’re working with a simple savings account or a detailed investment strategy, it’s usually a lot easier to lose money than to make it.
Whether you’re holding a fortune or hustling for your first million, here are 5 common mistakes to avoid when it comes to managing your money.
1. Spending without returns
While life’s luxuries can be tempting, the fact is that most purchases, whether you’re buying a latte or a Lambo, lose most of their value as soon as the buying is done.
An investment, on the other hand, should ideally be worth more when you sell it than when you buy it. We’re not saying don’t buy nice things, but be aware of the role each of your purchases will play in building your wealth.
2. Following bad advice
Money has a habit of forming opinions, but while you may not be short of suggestions when it comes to what to do with your funds, the majority of them likely lack the expertise and experience to offer sound investment advice.
We suggest you stick to advice from the professionals.
3. Not keeping track of debt
The more money you have, the more chances you have to accumulate debt. This can be a good thing as borrowing can pave the way to even more financial opportunities, but it’s vital that you ensure your debt remains manageable and within your budget. Speaking of which…
4. Not creating or sticking to a budget
This is a basic one. Simply put, having a clear idea of how much you spend, earn, save and invest on a monthly basis will allow you to reach your financial goals and put you in the best possible position to take advantage of opportunities to grow your wealth.
5. Not believing in yourself
After all, if you don’t believe in yourself, who will? Need some inspiration? Check out this guide for tips on how to grow your money with savings and investments.
Next step
Want a tool to help you keep track of your money? Add the Money Movements feature on your Banking App to get a visual representation of your income and expenses.