MONEY HABITS THAT WILL KEEP YOU BROKE WHILE YOU ARE YOUNG.
The way you handle money is a key factor in how successful you are, in building wealth. Your money habits can either build your wealth or can destroy it.
This week we are going to highlight some of the common habits that keep people broke, while they are young.
Let this not fool anyone. This text is not only relevant to young people but also not so young people.
Don’t believe me? Take a minute to read and i’m sure you’ll be surprised.
NOT SEEKING FINANCIAL KNOWLEDGE.
Bet you didn,t see that one coming, did you?
“My people perish because they lack knowledge” sound familiar?This is a famous Bible text for Christians.
Most Young people have financial problems. Not because they don’t have money,but because the don’t know how to spend the little they have.
Being prosperous starts with acquiring relevant knowledge. when I say relevant knowledge .
If you want to be rich, must seek knowledge first.
We should read financial related materials, attend seminars and so on. Making time to read one book per week won’t take much of your time but it will in fact save you from making many avoidable mistakes.
KEEPING COMPANY OF NEGATIVE(MINDED) PEOPLE.
.
“Bad company ruins good morals”, “show me your friends and I will tell you your character”. I could go on and on but I believe you’ve come across these phrases.At least at one point in your life time.
I want you to read them once again.
The wrong company will have you blaming others (society) and situations for your financial state. Let me tell you this for free, no one is responsible for your success. Not the government, a rich relative, your parents, no one. Only you are responsible for your financial success.
Seek advice from people who have already achieved what you want to achieve. Hang out with those you share that desire with.
All this is because your mentality(believes) plays a major role in your success.
If you want to be successful first take a look at your friends. See if they are the right people who can back you up in your quest for success.
If they are not choose to work on yourself. Afterwards educate them.
CONSUMER MENTALITY
Every body is a consumer but not every one has a consumer mentality.
As a young person, you should have two mentalities. An entrepreneurial and investor mentality.
You should not be buying depreciating assets but instead buy appreciating assets.
We should be thinking about ways of making our money work for us. Thinking about clothes, fashion and big hotel is not wrong but it’s not advisable when you’re not financially stable.
SPENDING MORE THAN YOU MAKE.
Most people spend more than their income. That means they survive on credit.
While young we ought to make strategic moves our expenditure. This is to fit make our income enough and also ration some for saving.
If you continue spending more than you earn, eventually you’ll spread thin financially. We should make it a habit to stay within our wage range.
TRYING TO GET RICH OVERNIGHT.
Every success must obey the law of process.
Getting old,fat, thin, poor ,rich must be subjected to a process. But many have assumed that fact. Others who obeyed it ,quite along the way.
Obeying the process is difficult but it’s the only option towards achieving something.
It starts from saving, investing then profit(success). If you don’t want to remain and live miserably then you must obey the process.
LACK OF A CLEAR FINANCIAL PLAN
consider this: If you have a car, it is easy to drive on a tarmac road. Why? because it is well prepared and clearer.
But consider driving on an unfamiliar bumpy road. Driving won’t be easy.
This applies to the financial journey that leads to success . If you want to achieve success, first you must have a clear defined plan to guide you otherwise you might take a wrong turn.
A plan is the basic need for success. Making a plan will guide you on decision making and taking a step. You will be able to know when to do what and why.
RELYING ON ONE INCOME STREAM.
Having a job is good but what would happen if one day you’re sacked, demoted or the company closes down?
Disastrous, do you agree? Credit would be your new friend and gradually poverty will be a closer friend.
We can avoid this as early as now .By creating or looking for a second source of income. Side hustles, online businesses or even part time jobs.
These will not only back you up but also speed up your success. That means if a misfortune doesn’t affect you, it will be a bonus to you.
NOT FOLLOWING YOUR BUDGET.
A budget is the strongest stronghold to get control over finances.
A well defined budget is your vehicle on the super highway towards success. We should learn to stick to our budget and avoid excuses for not following it.
You realize that disobeying to your budget is the greatest enemy to your success. Am pretty sure that your success is around the corner waiting for your adherence and complete obedience towards your budget.
Learn how to budget by clicking here
NOT PLANNING FOR EMERGENCIES
.
Most of the reasons I get from people for not adhering to their budget and using their savings is “it was an emergency”.
To be fair and clear, emergency should be part of your budget and saving plan.
This means that when an emergency knocks at your door it doesn’t have to disturb all your financial plans. You’ll simply visit your savings account and it will cater for that emergency.
Learn which savings accounts you should have by clicking here
SPENDING MONEY AS SOON AS YOU GET IT.
.
Before spending money (even when you never expected it; maybe it’s a gift), take time to plan and budget it.
This is wiser. Most folks instantly run to make unnecessary purchases. Only to regret it later. Let’s make it a habit of settling our mind before spending.
GAMBLING
Most young people have been taking risks by gambling. In the pursuit of instant success.
At first it will entice you but once it has become a habit, it will drain your pocket dry.
Let’s learn to avoid what seems as a shortcut. Gambling can become a greater thorn. As it’s victims become addicts. If you do the math, in the long run you will be loosing more than what you stand to gain.