10 Mistakes People make with their money
|June 7, 2017||Posted by BLOGGER under BUSINESS|
It's not funny to see people making money management mistakes. Have you made these mistakes with your hard earned income?
1. They never worked out how much income they really needed each week to do better than just pay their bills. They did not make a budget.
Define the budget as follows: calculate the amount needed for an organization to operate and achieve its purpose. If you are satisfied only pay your bills, and you first do not pay for the savings plan, you will remain in a poor state while you make your supplier rich. Each provider you pay is in business to make a profit. Should not you run your business to make a profit? Your income goal must include profit or business failure in financially.
2. They did not work out a way to make more money than they needed, and then ready to do whatever was necessary to carry out their plan.
By estimating the exact amount of money needed to do better than the break, they almost always set a very low income goal and lost a lot of money by using credit instead. Because come into operation to increase income. Anyone can explore different ways to earn extra money; Often is willing to do anything you need. That seems to be the problem.
3. They have a habit of spending more money than they do.
Use your earnings to buy the appearance of & # 39; Of wealth is a lethal operation. I mention this breed of Spender Gratification Groupie. This can catch up quickly and in a short time can make you drown. Being in this situation causes constant stress on money and partnership during sleepless nights. Money does not buy happiness. However, do something effective and worthy and know you are appreciated because it can make you feel like you are in the world. They do not find out what they will need in the future and then spend a little bit of money each week so they can pay cash for the next purchase.
Buy something with a credit card because you have no money committing your future earnings to the credit card company. You are working for a credit card company as an economic slave. The right way to buy, especially for large items, is to spend a little each week until you have enough money to buy things and then go out and negotiate a large amount of cash. The man with CASH IS KING!
5. They buy products and services based on WANT rather than NEED.
The purchase decision must be based on how you purchase the service or product that will help you earn more revenue for you. Be honest here, do you want the latest mobile phone to feature emailing and text messaging because your friends have one or you need it to work more efficiently because you are outside the office. Make more money?
6. They do not contribute to retirement savings plans so they have money to spend later in life.
If you are relying on others & # 39; Produce in the future to pay you Social Security payments so you can retire, it's really a gamble. Despite the fact that our government says living expenses increase by 3 to 3.5% a year, the truth is that it will increase to 8-12% a year. You have to make that income more than just to stay. Why the government reported that only 3 to 3.5%? Unfortunately, because the government has to increase Social Security payments each year according to the percentage they report. The Social Security system has gone bankrupt and people living with Social Security alone have the same direction.
7. They do not build many sources of income. If a source disappears they are financially troubled.
Old saying & # 39; Do not put all your eggs in one basket. Keep it right today, especially when it comes to sources of income. Locate profitable services or products that you can supplement, or venture business that you can engage in morally and have a great opportunity to generate residual income. [They are worried about low interest banks paying for savings accounts while they are being killed at significantly higher interest rates by balancing the balance on the credit card.]
If you have a significant credit card debt, it is better to use excess cash to reduce your debt and exit higher interest payments instead of trying to make a profit from the bank. When you reduce your debt, you should also keep enough cash in hand to cover a few months of basic living expenses. Once the debt is over, or close to it, then start investing the excess amount where you can get real growth.
9. They emphasize the "economy" in general.
I'm surprised that people are really worried more about the "economy" than about their business or family finances. Tell them about the economy when it's something they can not control, while never looking at how they affect the economy of their business or household, that Is what they can control.Improving unemployment is not a cause for concern.Majority & creation of new jobs has exceeded the level of job loss in big corporations , According to latest ADP report.A failed bank has no reason to panic.Financial institutions receive funding from the FDIC and investors. No one is standing outside to salvage your failure, it all depends on you, so keep promoting your business, concealing some money and sleeping well at night while Bad news about economy & # 39; Angry around you. They are expected to survive financially without having to take full responsibility for the financial control of the financial future.