Have your money in a savings account
The first big mistake that many of us make when we do not have a unique financial education, which is the basics, is to leave our money in a savings account or a checking account.
Never leave your money in a savings account; the reason is inflation.
You do not have to learn economics, you do not have to be an expert, but if there is something you should always be aware of in the country where you live, it is inflation.
Live beyond your means
Living beyond your means is when you spend more money than you earn in the month, or when you live from month to month spending all your money, and be careful with your money is yours, nobody says otherwise, and you can do what you most want with him. However, I assure you that it is bad for your future.
Buy things you do not need
Something that often happens, and in terms of statistics, women suffer more is buying things they do not need; here comes the psychological part again, and that is that many of us buy things on impulse, which is terrible for our money.
Be aware that when you buy something, you are not paying with money; you are paying with time spent in your life.
Since to get that money, you had to invest time of your life.
Loan abuse, lousy debt
Loans are not bad; they are tools; it would be the same if you talked to me about a knife that is a cooking utensil. However, it can be used to kill a person ─ it is an example already very burnt, I know ─ that is how credit works with your finances.
If you ask for a loan for television, let us go wrong; if it is for a game console, the loans should seek to offer you peace of mind or comfort, not a luxury.
But be careful with this; I am not saying that you should not take out a loan for this type of thing personally, I have never done it, nor would I do it; I prefer not to have a television than to be paying a loan to see it in my living room when it will not give me anything more than a luxury, entertainment.
Not saving month to month
Something you should never do, and this is the most dangerous thing of all, is not to save constantly; month after month, allocate at least 5% of your income to savings.
And it is that living the month, spending it all, will only lead to ruin because at some point, you will have a health emergency, or a home emergency, or a study emergency, and if you do not have anything saved, you will have an inconvenient time.
Never buy a new car
The car is less and less necessary, and many of our countries, although with a poor transportation system, also can mobilize us, which is what we are looking for.
However, if you need a car for your job, or just because you want it, never buy a new one.
Gambling, an invisible enemy
It is a tax on the poor because naive are those who think they will win the lottery. The funniest thing is that many see on television or in newspapers when there is a new millionaire for the lottery, but they do not realize the Millions of people who bet every day.
Better go save that money to invest and start a business; it will always be better than giving it away to a group of already millionaires for people who “believe” will be millionaires.
Buy low-quality things
Something in which many of us fail, and in a big way, is to buy useless or poor quality things that to save money; however, what we do is spend more money in the long run; why, when purchasing something of low-quality quality, this one gets damaged quickly and then we have to buy the good one, a quality one, that was what we had to do from the beginning.
The most expensive is not always the best, but if you buy something of inferior quality to save money, then you will have more terrible things than good things because, in the end, you will have to buy the good one.
Lending money to family or friends
This point is risky to deal with, but in my experience, it is that you should not lend to relatives. Unfortunately, that is the case; it has gone well, I mean very well in my case. I am 50/50, I have lent, and they have been bad, and I have lent, and they have been good.
Invest in something you do not know
The most crucial point and it connects with number one, is that leaving money in a savings account is not convenient, but neither is investing in something you do not know about.
There are many fraudulent businesses, but I will give you a trick to identify bad companies.
There will be good businesses, but you should know about them before investing, you should know about the risks, and something that I tell many is that you must take opportunities advantage of, yes, but if you are alive, there will be many opportunities that will not be the only one.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.