8 FINANCIAL MISTAKES SUCCESSFUL PEOPLE DON’T MAKE

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Building wealth doesn’t only end at having a lot of money; many people’s financial life has gone down the drain because they felt they could do anything with their money — and they paid the cost. Successful people don’t think this way; to successful people, some financial mistakes are too costly to be made — so they avoid certain money mistakes almost everyone makes and apply the principles many are afraid of.

These are some of the money mistakes successful people don’t make.

1. OVERSPENDING A BULK OF THEIR MONEY ON ENTERTAINMENT

Many people tend to spend a bulk of their money on entertainment; people spend over 50% of their pay check on fun and leisure, but this is a huge mistake successful people don’t make. Successful people rather use a bulk of their money on their dreams and goals, and to create wealth.

2. SPENDING ABOVE THEIR MEANS

This is a definite rule successful people don’t break. Surprisingly, people who aren’t too successful tend to make this costly error; they spend above their means and hope for a better tomorrow. Successful people rather spend within their means and plan for a better tomorrow — that’s a huge difference.

3. NOT SAVING

A lot of people face so many financial difficulties because they can’t save; many can’t save because they cannot live within their means, so they spend their whole pay check month after month and year after year, with little or nothing left to save.

Successful people understand the importance of saving, and they live within a budget or plan, so they don’t find saving as difficult as people claim to make it.

4. FOCUS ONLY ON SAVING

The successful people don’t focus solely on saving; they also understand that earning money is the priority. So they don’t only save, but they look for means to earn more — they invest.

5. IGNORE THEIR ACCOUNT STATEMENT  

Many people are too scared or too lazy to balance their books, but the successful people aren’t. They review their account, they monitor their financial statement, they keep track of where their money is going — in essence, they understand their financial position.

6. BUY NON-QUALITY

This is one act of successful people that others don’t understand; many people go for cheap products, but successful people go for quality even though it comes at a weighty price. The good thing about this is that they can use that product for a very long period of time, while the ones who go for the cheap products might not use it for half the length of that of the successful man’s quality product.

So successful people don’t prioritise price over quality, because they understand that value is what matters most at the end.

7. TAKE FOOLISH RISKS WITH MONEY

Successful people don’t gamble their money on things they don’t know; for every financial decision they take, they try to understand its implications; they don’t just throw their money into a deal because it’s too good to be true. A lot of people have lost so much because of this.

8. THEY DON’T FAIL TO DEVELOP THEMSELVES

An investment in one’s self cannot be wasted, and according to Benjamin Franklin; “An investment in yourself pays the best interest.” Successful people don’t fail to develop and improve themselves, whereas the ordinary man sees this as waste of money.

 

The difference between a successful man and an unsuccessful one lies in the decisions they make; it’s not about being poor or rich — some very rich people started out very poor, while some very rich people ended up broke — so, it’s about making the right decisions.

Jake   

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