Avoid them at all costs:
1. Excessive Debts (Borrowing Incessantly): These could be complications from another set of financial illness. Check the root cause of your Debts. Be true to yourself.
2. Lack of budget (Spending without plan budget): This stems from lack of discipline. Why would you spend carelessly what you suffered to get?
3. No savings (Eating with 10 fingers): This is myopic and unwise. It is sacrosanct to prepare for the future. Savings help on rainy days and also to achieve projects. Save! Its a must!
4. Impulse buying (Buying just anything that gets your attention): Also a sign of lack of discipline and self control. Ask yourself: do you eat every food you see on the street? You shouldn't buy just anything you see simply Because you can afford it. You're simply burying yourself into financial mystery if you do. Spend wisely.
5. Not investing (Not Spending to have assets or investment that will generate further income): Also myopic and vision visionless. You need to be wise enough to think of how to make more money. Things are not getting cheaper!!!
6. Overspending (Spending beyond what you actually have, leading to debts): A symptom of lack of financial discipline and self control. Watch it.
7. No financial plan (Overall no financial plans for self or family, just living in the moment): Very pathetic situation. You're luke a driver with no destination in mind. Or a boat in the middle of the sea with no destination but being tossed here and there by the tides of life's uncertainties.
8. Lifestyle inflation (living above your means): Very bad one. Doing this is lie digging a financial grave for self. Who are you trying to impress? Others? Your woman? Your peers? They don't give a damn. And worst still, you're going to face the music all alone.
9. No emergency fund (Not having a savings you won't touch unless there's emergency): very myopic state to avoid at all costs. You got to save for emergency.
10. Not tracking expenses (Not Spending consciously.): A lack of self-control. Record keeping helps measure progress and reconciliation. Accounting for expenses is a sign of self-awareness.
11. Bad lifestyles (addictions, gambling problems leading to huge financial position or wreck): Well, needless to say, these will ruin your life. Run!!!
Which do you think is the biggest mistake? Do you agree these are all mistakes? Which are/were you guilty of?
(c) Azàland
Thanks for the piece. I don't think all debts are bad. You can use debt in business to build wealth.
