Many say mistakes are bound to happen in life, but it is also true that some mistakes are avoidable if only you are ready to learn from other people’s experiences. I think sometimes we just don’t pay attention to what happens around us, and that is why we commit certain mistakes that could have been avoidable. In this article, I will address some common financial mistakes that many people commit that have dire consequences on their lives.
1. Not setting financial goals
This is one big mistake people make that they don’t even notice. Can you imagine boarding a car before thinking about the destination you want to go to? It is either you will miss your destination or waste your precious and limited resources, talk less of the stress you will go through. This is exactly the behavior of many people every year. They start the year without setting any clear and realistic financial goals that will give their efforts direction and purpose. That may sound trivial, but the consequences are dire. Hence you need to set financial goals using the STAR approach so that you can go through the year with an aim.
2. Not investing
Another big mistake you must do everything possible to avoid is not investing. There are a lot of people who save a good amount of money in their savings account but will never take the bold step to invest it. It is good to save, but it is best to invest your money. That is because inflation affects the value of your savings over time, but investment has the potential to give you higher returns depending on the period. However, one thing is important. Make sure you understand your risk tolerance level and seek the help of experts to get the best returns on your investment.
3. Not having a budget
This point is as important as any of the other points. You can liken spending without a budget to driving with your eyes closed, which will surely lead to crushing. But, having a budget helps you to monitor and control your expenses because it becomes your roadmap. This year, endeavor to draw a budget and stick to it, and you will be surprised at how quickly you can reach your financial goals.
4. Ignoring your debts
This is another big mistake that has the potential to stress you financially if not given attention. Borrowing money in itself is not bad when it is used for the right purpose. However, some people have the habit of borrowing money and intentionally making up their minds to pay it back. What you must understand is that unchecked debts grow, and their interest compounds, and before you know it is overwhelming you. Hence, it is important to face your debts head-on by creating a repayment plan prioritizing high-interest debts, and sticking to the plan. Don’t run away from your debts this year because it will cost you more than you think.
I hope you found these points helpful and will go a long way to make a difference in your life this year.
Having said that, I encourage you to contact SRF, the best lending micro credit in Accra, in case you need money to eject into your business or solve a pressing need. Contact us today, and you will be sorted out.
Visit our website at srfcredit.com for more information.
Reach us by phone at: 0501565882/0240061709