If you want to be wealthy, there’s no shortcut route. You have to focus on your goals and be realistic and prepared to take risks. While building your wealth, make sure you avoid these money mistakes…!
1. Spending more than you earn: Remember grandmother’s words of wisdom — cut your coat according to your cloth. So, financial prudence comes with wise spending. You might think it’s very easy to follow but spending patterns of people show that it’s not easy (considering the usage of credit cards and different enticing schemes available at lifestyle stores and supermarkets), many of us go beyond our means even without realising it. To curb the urge to spend more than what you earn, maintain a budget and then track it closely.
2 Buying things you do not need: “If you buy things you don’t need, soon you will have to sell things you need.” ~ Warren Buffet. The second point directly flows from the first one. Don’t be a maximalist and keep on buying everything that you catches your fancy. Spend on what adds value to your life but don’t buy just to impress others.
3. Not having a financial plan: Planning is very essential for achieving your financial goals. So, if you want to have a financially sunny life, then stick to a financial plan. Make sure that your finances grow in times of high inflation.The trick lies in making investment even if your income is not high by common standards.
4. Don’t put all the eggs in a basket: Diversify your investment. Come out of your comfort zone. Be financially aware and understand the nuances of investment. Don’t follow suggestions blindly. And the most important ways to increase your wealth is to have a diverse portfolio.
5. Don’t be in a hurry: Look before you leap: Understand before you put in your money. The same goes for spending too. Don’t follow trends blindly and become a victim of consumerism.