We’ve compiled five SCARY mistakes that people make when dealing with their money. Whilst these are only a start, if you heed them you will avoid a lot of the biggest pitfalls that most people fall into.
When it comes to finding information about personal finance, there’s a lot of bad
information out there. If you’re looking on the Internet in particular, it seems that
everyone who writes about personal finance is trying to sell you something that will triple
your bank balance overnight. Don’t fall for these short-term traps from shady “experts.”
It takes time and effort but it’s also possible to see short term gains while building long
term wealth. You just have to know where to look (hint hint, you’re in the right place!).
2. Not Thinking Short Term
On the other hand, there are a lot of people who think of personal finance as a longterm
project, yet do nothing in the short term. I’m sure you know some people like
this and maybe you were one… “it won’t hurt to put this off another few years. I just don’t
have the time or ability to take care of these things now.” The sweet spot for personal
finance is to actively think about the future, but act in the now.
3. Not Cutting Out the Excess
Unfortunately, the majority of us live a consumer-focused lifestyle. We spend a
lot of money in order to relieve stress. We spend a lot of money to make things
easier and quicker. We’ll buy a coffee or eat out as opposed to cooking; and these things
add up to a lot of money over time. You need to save money in order to succeed with your
personal finances. That much is inevitable.
4. Cutting Out the Necessities
Again though, you can go too far. Some people actually spend a lot more money by
trying to be frugal than they would otherwise. There’s a difference between saving
money by skipping your expensive morning coffee versus consistently eating cheap food
(the latter will eventually result in more medical expenses). When you are cutting costs,
cut out the frivolities and not the necessities.
5. Not Increasing Cash Flow
The majority of the gains you make in your financial success won’t be in terms
of saving money, but rather, in making more of it. The best thing you can do for
your personal finance is to work hard, work smart, and succeed in your Income Snowball
strategies so that you can make your money work smarter and harder FOR you. You need
to take the opportunities that come your way, and you also need to do your best to make
Providing you can keep these things in mind, you will succeed with your personal finances and reach your Financial Freedom Date on time!