Updated: Sep 10
“Revenue is vanity, Profit is sanity and Cash is king.” — Anonymous
Here are the 5 things that most people mistakenly do which are going to make them poor again.
“The people who know personal finance hide the money very carefully.” - James Altucher
Making money is very difficult especially when you don’t have enough resources. But what if someone tells you that you are going to lose all of the money that you have made with hard work and with a lot of effort. You’ll probably be in shock. But if you don’t know how to manage your finances, you are going to be broke soon. Here we have collated the 5 things that most people mistakenly do which are going to make them poor again.
Managing your finances may be difficult, but it’s not impossible. If you are making money now and want to keep the money flowing in for years to come, make sure that you don’t do any of these 5 things.
1# - You have only one Income Source
First sign that you are losing your money is that you have only one income source. You are staking your life on one thing. If anything happens and you lose your job, you won’t be able to manage your expenses.
You should always have multiple sources of income. If you don’t, it’s time to find some other ways to bring in money. There are many different options available for generating an additional revenue stream without quitting your day job or taking on more hours. For example, there is affiliate marketing where people can make commissions by promoting someone else’s product or service online and on social media.
2#- You are Spending more than Earning
If you are spending more than your actual income then no doubt you are going to be poor again. If you are the kind of person who loves to show off with money and wants to hang out with friends, then unfortunately you are not on the list of successful people. Successful people first invest in a business, establish it and reinvest to grow, and then spend when they successfully start making money passively.
If you want to be wealthy too, then it’s time for you to start thinking differently about your money habits and learn how these principles work so that one day soon, you’ll have a thriving business of your own with an ever-growing bank account.
Where most people spend their money:
Parties and Friends
3#- You Get into a Money Fraud
There are a lot of money frauds around and not all ways to detect them are obvious or easy. Never make any decision based on your feelings alone because that could lead to disaster. If it’s an important financial transaction, always get professional advice before taking action. Don’t be too naive to fall into this trap. There could be different frauds that you can’t even imagine.
Most Common Scams:
Off Plan Real Estate
Prizes and Lotteries1
Before investing in anything, be sure to do your research and find out what it is you’re putting money into. Don’t fall for the allure of a fast-talking stranger who’s promising something that sounds too good to be true.
“If they told everybody what a simple game [investing] was, 90% of the income of the people that were speaking would disappear.” - Warren Buffett
4#- Investing without Experience
Investing your money without work experience can put you in trouble. You might lose all of your money if you don’t know how that business works. It mostly happens with people who are investing in stocks, crypto and forex without any knowledge and experience. They end up losing all of their money.
Take the time to learn as much as you can about any business before investing. Even if it seems relatively straightforward, take a few hours out of your day and do some research on how that business works and what is their process for making money. You’ll save yourself from being an uninformed investor who loses all their money in a matter of months or weeks because they invested without experience. Instead, invest with knowledge so you understand the risks involved but know what potential rewards there are too.
5#- You are Paying for Unnecessary Subscriptions
Unnecessary subscriptions are one of the most common mistakes that we make because of which we lose a lot of our money. Paying subscriptions for movies, serials, games and some other app that you are not using right now are the real burden on your monthly budget. So cancel them as soon as possible if you don’t want to lose more money.
These subscriptions are one of the most common mistakes we make because they end up costing us more than expected and can be too difficult to get rid of. The sooner you act on this advice, the better off your budget will be in the long run.
Some Financial Tips To Save Money
If you cannot buy twice don’t get credit card loan on behalf that item.
Make a Budget at beginning of the month and spend your money accordingly.
Divide Money into three parts, one for savings, one for expenditure, and one to reinvest.
Change your lifestyle if it becomes difficult for your to manage your expenses.
Work on Side Hustles and build some new income streams.
Main Human needs are food, accommodation, and clothes, try to get them at cheap prices.
“Money is a terrible master but an excellent servant.” - P.T. Barnum
Thanks for reading…
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