The worst financial mistakes below you may or have often done. Not to justify, more to whether we are in that state or beyond. financial mistakes in doing business:
1. Paying Debt with Savings Money
If you really make this mistake, what is in your mind? Debt is debt, especially if you owe it and use the money to rotate your business assets. It is the most forbidden thing if you use your savings to pay debts.
It is very easy indeed to take money from existing savings, but if you continue to do this then over time the money that you plan for the future will disappear and not remain, and you will start again from zero.
2. Never Preparing Emergency Funds
Do you think that an emergency situation will never happen to you, that is your first mistake. If you have never prepared funds to deal with an emergency or difficult situation, that is the next fatal mistake. The most wise in managing finances, especially the finance to run a business is always to set aside special funds to deal with difficult times that you might face. Prepare the funds from now on, set aside a few percent of your income for emergency funds.
3. There is no investment at all
Investment is very important in its existence in the business world. Not only the benefits that you can get from the #investment business itself, but investments can also organize your financial life from now on. Even though you don't manage the investment business, allocate funds as much as possible to invest in any field wherever possible.
Investment is very useful and makes it easy for you to secure your assets. Simply put, to apply this theory is to set aside a portion of your business's profits to buy goods that have investment value, such as gold or land.
Learn in detail about how to invest something in a good and right way. Do not get you wrong in buying goods or investment products, because it is not the security or profit that you get but might make you bankrupt.
4. Not Having Insurance
You might think that buying insurance is an unnecessary step, or even spending your money. Indeed, unhealthy or dead conditions we never expected to arrive. But how can we refuse, it is not our domain to regulate it.
Sudden circumstances will certainly make everything uncontrolled if you don't anticipate it from the start. One of the best ways is to have insurance. What needs to be considered here is how to choose insurance that is responsible for the client.
Don't be in a hurry in determining the insurance you will use. Collect as much information as possible on all insurance products that you will buy. Only if you have complete the information you get, you can register to become a customer.
I made a ton of financial mistakes in my life especially when i was younger. I find with getting older the awareness of certain risks grows and you learn to not make the same mistakes again.
One of my mistakes is trusting people to much with money. You can't almost trust anyone in this world with money even not your best friends. I once got scammed by a friend of mine for a very big sum of money, it was basically a confidence scam that he did. I sold a car and never got my money.
Another bad mistake that i made is leaving to much money on an exchange without 2 factor authentication turned on. Always use 2fa, hard lesson learned for me. Lost 10 000 dollar worth of ethereum when it was still worth 40 usd per ethereum. Could been a few 100k at the peak of the bubble end 2017 if i would not get hacked.
I made a successful model of a construction company and one of my false friends whom I trusted was very close and said that he will put all the money and that I will build and sell the property. It went well, but he only paid 39% of the money instead of 100% and I used the money of the banks and my sources because he said that if he had no money he could not continue and was willing to stop the construction, which he could do because of my other projects in the same place. Somehow I completed it and gave it 50% profit and kicked it. He and his friend wanted to participate in my upcoming projects that I denied, so he stopped talking to me without completing the reports of that particular project. He escaped with about 2 thousand rupees. So, friends, this is a long journey with many mistakes, but constant learning and my friend make me run and win after all these problems. Do not put all your money in a basket. If all your money is in mutual funds and they are different, they are not. Keep money in real estate and even in small businesses.
"Never trust and do all the paperwork is the key."
I learned this lesson after paying a lot. I hope you benefit from my experiences. I'm constantly learning and always working on new projects / activities and earning a lot of money with them, so I'm still fine, but some people have their only winnings that they can lose. So be very, very, very careful. Never trust relatives or friends in case of money, the greed associated with money changes people instantly and could be your worst enemy.
Here are some things that can be financially wrong.
-Have a Balance in a High Amount Account
It's nice to feel when taking money at an ATM and see the remaining amount of money is still a lot. Unfortunately, that is also a sign that your money is not being used properly. Many of us who have salaries which are automatically deposited into the checking account and then idle money just like that in the account, do not get interest. Even though it gets interest, the amount of savings interest is small, sometimes it does not even cover the monthly costs.
-Cut Out Expenses, But Only Small Expenditures
You sometimes feel relieved when you cut expenses. But be careful when you feel calm only after cutting down on small expenses. See Also car payments, insurance fees, or other monthly bills. Try to be supervised again, are these costs in accordance with the initial agreement or deviated?
-First Credit Card Payment with the Biggest Balance
Even though large limits look like high flowers will eat away at your wallet, the cards that you clearly know have high interest rates even though the limit is small it can ultimately give a bigger blow to your salary.
Not beginning to earn and invest a portion of my income early enough. I should've made it a habit to try and earn and put aside money each month from an earlier age on. A ten-year head start can do wonders in compounding interest.
Ignore Side Income Opportunities
This is a big mistake that often happens to us, we often ignore the side opportunities that are in front of us. Often not aware that it turns out that a side business if managed with good management has tremendous potential. In fact, not infrequently many large businesses that start from a side business. But you also need to remember that if you already manage the main business, keep prioritizing what you manage now.
The limitation is that if your side job opportunity does not interfere with your main business work ethic, then you can take the opportunity. Or if you feel too heavy to do that, you can also hire the person closest to you to capture the opportunity, of course with the results that you have talked about before.
Well one of it is to own a credit card. That is one of the biggest mistakes I've made. The day I had it I never stopped impulsively using the future money until last year which is ten years after I had it since I graduated from university. The interest per year was alot.
There were also impulsiveness in buying things that weren't useful. Like new phones, new books and etc. Nowadays, I don't buy books which are just released. Mostly by waiting for them to age or get them from the library to read. It's not worth it. Imagine saving money and investing it. Can compound up alot.
At the supermarket, I usually buy refill packs instead as it is alot cheaper and mostly eat at home and seldom go to eat at those very expensive shops. I seldom spend cash on things that I feel would really go out of style in the next year or so. I think carefully before purchasing anything these days. It is wonderful to buy but not wonderful to think of how much I could have made investing it. Instead. Those money spend could have been saved.
Buying a new car. I think its not worth to buy a new car and better to get a second hand car which would be less in amount. Car depreciate too fast.
My worst mistake ever was not getting on steemit in 2016 and buying steem at $.09 a steem. I could have been a millionaire. Idiot.
Oh I think I have a lot of this. Let's see... lemme share my #1 mistake:
No discipline to save money until several years ago.
Okay, I can't keep blaming my parents for not instilling this practice in me. Even when I already started working I still did not save money in the bank. I was always renting a room to live in because we don't have a house here in the city. I ended up always using my savings over the years whenever I think I have enough. Lol. My bad.
Several years ago I decided to save for real and was able to save enough money again. Out of nowhere a family emergency happened so guess where my savings went? Turns out it became my emergency fund. Haha. Back to square one.
Having no discipline to save money of course led me to regret almost everything I spent most of my money on back then. It's really a no-brainer. If I had saved and saved money from my previous work and salaries and not kept on using them after accumulating enough then I would probably have a lot to put in investments now that I'm older. I'd probably be a lot richer if I knew any better. Too bad nobody was around whom I could look up to in terms of saving and investing. Nobody was around to think of sharing wise words of financial wisdom. My workmates also did not talk about being financially savvy. Whew.
I did not come from a rich family so of course no one would be able to teach me how to be rich. I only have myself to blame for not being worldly and financially smart sooner. Oh well. Thank you internet for being here because without you I'd probably be hungry more often in the past several years. :)
Of course I've learned my lesson too late it seems. But anyway, last year I also finally bought a big coin bank. Should help me save for my December overseas travel plan. Hehe.
Life is good. Even if we make mistakes as long as we learn from our experiences then we will be able to move forward and eventually succeed in life. It's never too late to start on anything. The best time to start is always now. Better late than never. :D
How about you? Care to share your financial mistakes?
Mistake#1: I Never Knew Where The greater part of My Cash Was Going
At whatever point I took a gander at my financial records adjust, I'd have some thought in my mind of how much cash ought to be left, and there was in every case less there than I anticipated. It appeared cash simply dissipated and I truly didn't have any thought where it went. I'd accept that I more likely than not utilized it for something beneficial that I had disregarded, and in the event that I glanced through the real rundown of withdrawals, it never appeared to be off-base. It just never seemed well and good.
I expected to conquer this misstep since it implied that my spending was actually crazy. I genuinely did not know where the greater part of the cash was going, and that made it difficult to venture back and see where I was committing spending errors. It likewise made it difficult to see where things like wholesale fraud were happening.
How could I settle it? I began keeping a nitty gritty spending log utilizing an old winding bound Mead take journal. At whatever point I spent any cash whatsoever, I recorded that cost in that pocket journal, clarifying precisely what I purchased. I likewise spared each and every receipt that I got.
At that point, each couple of days, I experienced those receipts and recorded them in my own back program of decision (which, at the time, was Microsoft Cash, which is currently dead). After some time, I started to understand reality: I was squandering a ton of cash on little, pointless, totally forgettable things.
Mistake #2: I Didn't Spare Enough for Retirement toward the Beginning of My Profession
Try not to misunderstand me – I saved a bit. The individual I confided in most at the ideal opportunity for profession and life counsel fundamentally requested that I do as such. In any case, rather than taking a gander at it as something extremely helpful for my future, I took a gander at it simply as something to mark off my daily agenda.
I wound up contributing about as meager as I could. My first business offered some pleasant coordinating assets, however I just gathered up a portion of those coordinating assets since I contributed pretty much nothing.
A vastly improved move would have been to contribute a ton to retirement, which is basically what I'm doing well at this point. I wish I had contributed 10% of my salary at least, and maybe as much as 20%. On the off chance that that were the situation, I'd do awesome at the present time. I wound up burning through cash that ought to have been put something aside for retirement on the inept stuff I found with that first misstep.
Truly when you contribute more to a retirement plan, the main thing you really "cut" from your spending are the stupidest and most pointless costs, which aren't generally a lot of a misfortune regarding your personal satisfaction.
mistake 3 : I Didn't Amass a Financial plan Since I thought It Would Be an 'Exercise in futility'
At whatever point the prospect of "money related obligation" entered my thoughts some time ago, I generally thought of the sort of spending plans that we found out about back in my secondary school customer training class. Those were the sorts of spending plans where you had a rundown of classes, you evaluated a number for every classification, at that point you endeavored to coordinate that number. It appeared to be somewhat trite and futile.
At whatever point I pondered planning, I considered that experience and characterized it as an entire exercise in futility. In that, I was correct – that methodology would have been an exercise in futility. It is anything but a decent method to make a financial plan, however.
Rather, I in the long run attempted a significantly more astute approach. I began rather by monitoring my spending throughout multi month or two and utilizing that to construct a financial plan. I arranged the greater part of my spending into sensible classifications, arrived at the midpoint of them out to figure out what a "normal" month resembled for every class, at that point outlined a spending that urged me to take care of the belt a smidgen in the classes I had more control over, similar to nourishment spending.
That, my companions, brought about the ideal result. Not exclusively did it give me a reasonable take a gander at how I was spending my cash, it additionally gave me some delicate direction for how to enhance in the correct territories where it appeared well and good for me to move forward. That is unimaginably helpful direction for anybody.
Nothing much however I may regret that I didn't buy steem when it was at 20 cents :(