5 Things You Should Never Do With Your Money
Let me ask you this.
Do you think that if you become a Millionaire or maybe Multi-Millionaire, you will never have financial crisis after that? No matter how back you spending Habit is.
I guess you are in a bit of a dilemma. Let me give you the Answer.
“YES”, no matter Rich you are, if your Financial Knowledge and moreover Habit is not good, you just can’t ignore getting into Debt again.
There are so many real-life examples.
So, my point is no matter How much you earn, it is all about How you spend or rather Manage your Money.
For e.g. Mr.A is Earning $10,000 a month, Mr.B earns only $5,000 a month.
Now Mr.A is rough with his Finance and spends about 90% of his income of stuff which is not really his “needs”, but Luxury.
Whereas, Mr.B, is good with his Finance and understands the importance of Savings and moreover Investing those savings in different places. So he spends around 60% of his Income and the rest 40% is divided into Emergency Fund and Savings/Investments.
So, what do you think, what will happen after 5 Years?
I guess You are Right. Mr.A will still struggle with his Finances with zero or negligible savings or investment. While Mr.B will not only have a Huge Investment Fund but also would have attended his Financial Freedom.
Thus, you should think before you spend.
You don’t have to believe me, it was actually the words of The Legendary Investor, Mr.Warren Buffett.
And you gotta believe him.
So today we will discuss 5 things that you should not do with your Money.
- Actual Gambling – Yeah, this must be quite obvious, but people still do fall into this. Any kind of Gambling is BAD! It is called gambling because of it. You just know that you have no control over your money but you should also know that Casino or any other place where you are gambling does have an edge over you. I mean if you gamble at a Casino, what are the chances of your winning. Let me give you the fact, the ratio is 18,0000,000:1 and even sometimes 120,000,000:1. So, do you think your Luck will beat them in their game, at least I don’t have that kind of Luck. Moreover, it is not a real way to get wealthy. You just cannot rely on that.
- Have your Money sitting around – Money hates this! You have to learn to Make your Money work for you, and not the other way around. And to make this happen, you have to put your money into some places which will give you return in the future. Use your Money wisely, spend it wisely and also invest it wisely. Money loves to involve in Exchange. If your money is Lazy, it will be of no use to you in the future. So use it in the way that benefits you the most.
- Overspending – This must be the most common one. People love to spend more than they have and thus debt in any country is increasing every single day. The moment you decide to spend more money than you actually earn is the moment when you try to desperate find new opportunities to make more money. And decisions taken out of desperation is really bad. This lets to more wastage of your money. And you didn’t feel like you are really frustrated then you are in a bigger trap. It is the trap of “DEBT“, if you start to enjoy overspending then it will become a habit, then it will just go on like a spiral. It will cover you in debt in no time. So rather than overspending, be mindful about your purchases.
- Bad Investment – Investment is one of the Best Concepts in finance but only if you know what you are doing. People try to investment, but without knowing everything about it. When you invest, it is your duty to know in and out of that thing. You must be absolutely sure about that thing. People tend to do the wrong thing. Then invest just because one of their friends has done so, or someone told him/her to do so. This is bad and this is how you lose money. Don’t invest in something just because you saw someone making a lot of money out of it. The big example will be like Cryptocurrencies. There was so much speculation about it and people have lost a lot in it. Learn and then Invest and so not speculate. If you new try with something easy as an Investment Option, like Actively Managed Funds, although the return is low compared to others, it is a lot safer than others. (This is my opinion, do your own research before doing anything with your Money)
- Wasting Money on Stupid Things – You know we all are guilty of this stuff. We somethings do an impulse purchase or a habit, you know all these things. But this is Bad for the Financial freedom you are aiming for. Actually, if you think, you will find that we buy things or foods that shouldn’t be spending on. Those expenses seem a one-time or a small sum of money but eventually after a year, those expenses add up to a be a good chunk of your money. So, if try to stop now and think about some of these purchases, I believe you will find some at least some (maybe your Latte). This small sum of money can be saved and then add up to become a Big Investment. So try to be more conscious of your habits.
Conclusion- The road to your Financial Freedom is in front of you. Now you just have to choose.
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