Many seek to improve their financial situation in a way that guarantees them a better standard of living, but only a few of them move from just the daily struggle to earn a living today to having sources of income that generate more than enough money. The reason for this is that the majority of people have poor financial awareness, adopt outdated habits and think traditional when it comes to money.
In fact, there are mistakes that prevent many from making financial progress. In this video, we will review seven common mistakes. Although no one can predict your financial future, you should beware of these mistakes, because they will keep you where you are or worse
Focus on saving more than increasing income
Saving is very important for a stable and secure financial life, but you should not focus on saving too much and neglect increasing your income which is the main goal of anyone who aspires to a better financial level. This doesn’t mean you should never save, but you should stop worrying about running out of savings and start focusing on making more money.
It is true that the financial rule says that it is not about the amount of money we make, but rather the amount of money that we save, but this does not mean neglecting to make more money and diversify sources of income, in the end in order to be able to save money, we must earn it first.
You haven’t started investing yet
Investing money is the essential foundation of financial wealth that everyone dreams of. And if you aspire to achieve tangible financial progress, start now to plan for investment, and the sooner you start investing, the better.
Wealth is not measured by how much we save or what we earn from our work, it is measured by how much we invest over time and how much assets and investments we own.
You may not have the capital now, and the first step here is to manage your financial affairs more wisely, and start creating capital that enables you to invest. It is natural that investing requires you to have certain knowledge and experience in order to make a sound start in this direction, so it is better to start from now on educating yourself and developing your financial knowledge and investment culture.
You are comfortable working for a fixed salary
Ordinary people choose to spend their lives being paid based on hours worked – a fixed salary or hourly wage system – when it is unwise to spend a lifetime on the job to earn money that slips out of hand as quickly as we get it. This does not mean that many people with high incomes do not work for a salary, but the fact that this path is the slowest to wealth although it is the safest, and this explains that the majority flee to the easy and safe side, while wealth is on the other side.
While people of high energy and sincere ambitions work to build their businesses, establish their projects, and pave the way for financial growth, the common people are content with a monotonous life in the world of work at the mercy of a monthly salary that is almost enough to meet their needs. Earning money from a job alone will not achieve our financial ambitions, but rather by building businesses and projects and owning assets and investments.
You buy things you don’t have
If you live beyond your means, you will never progress financially and may sink into debt. If you don’t break the rule and spend less than you earn, you will live your whole life in a vicious circle, as even if your income increases, so will your spending.
Buying what you don’t have means falling into debt, and this will put you in danger. Therefore, you must beware of this habit so as not to burn it with fire after it is too late.
If you decide to buy something and you don’t have the price, make it a habit to save for it until its value is complete.
Some mistakes in your life can be costly, but what can sometimes happen in the financial side of your life, is actually much worse than that! Decide now to reorganize your financial life again, planning to manage money is as important as making money and may be more important than making money.
You rarely leave your comfort zone
Everyone carries wishes, but very few turn them into ambition and understand that ambition requires in addition to perseverance and perseverance, taking risks and getting out of the comfort zone. Yes, the process of growth and prosperity always involves risk and requires getting out of the comfort zone, and those who do not take the risk of growing up judge themselves to stay young. This applies perfectly to the financial aspect of human life, to achieve financial ambitions will require you to get out of your comfort zone. This means that you will need to constantly learn and take on new experiences to gain more experience and develop character, but do not confuse stepping out of your comfort zone with acting recklessly.
Spend first and save if you have anything left
The mistake that most people make when receiving their salary is paying bills and dues, spending on their needs and desires, and waiting for the end of the month to save what is left, and often there is nothing left, unfortunately. Savings must be within the budget items at a specific rate, for example, 10% of the total income, and this amount should be deducted at the beginning of the month and not after its end. Otherwise, don’t be under the illusion that you will be able to save.
You think wealth is either luck or illicit gain
The biggest impediment to the common people and low-income people, is not because they do not have the capital, or because the circumstances are not on their side, but because they believe that reaching a prestigious financial level is either luck or illegal gain.
While most people think that the possibility of getting rich is out of their control, very few believe that getting your share of financial success is very possible and depends on how sincere your intention is and when you decide to become responsible for your financial life.