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Jrd · 2023-01-25T00:21:36Z

Here are money or finance mistakes you must avoid in New year 2023. From time to time, we will make financial mistakes. What is more important than making such mistakes, is learning from them. Here are some financial mistakes to avoid this year. OverspendingIf you are regularly spending more than you earn, the prospects for future financial security will be a challenge. Create a budget and stick to it. Don’t look over your shoulder or on social media to see what everyone else “appears” to be doing. Focus on your own goals. There is no magic formula for creating and sustaining wealth. It comes from careful planning, focus and discipline over the long term.No financial planEven if you didn’t start out with any goals or financial resolutions before now, you can still get a handle on your finances. Financial success rarely happens overnight. Don’t just sit back and expect things to fall into place. The adage “if you fail to plan, you plan to fail” is true. A financial plan helps you to give some attention to what is important to you and your family to be able to achieve your goals. So much lies ahead that we must be prepared for. Don’t wander through 2019 without a plan. Even though you can’t predict the future, you can be better prepared for it, if you plan ahead. No emergency savingsWe watch the news from the United States each day about the implications for thousands of families following the partial government “shut down.” Many will not receive their due paycheck next week. The importance of an Emergency Fund to tide you over periods with little or no income is glaring. We don’t need to look far to see that all around us millions of Nigerians struggle to live from paycheck to paycheck; that’s if they have a job. For how long can you manage and fulfill short-term obligations if your salary or other income were to stop suddenly?As your family and responsibilities increase, plan for unexpected emergencies. The size of your Emergency Fund will depend on your family needs and your obligations. Ideally, you should set aside about six to twelve months of living expenses in a secure money market vehicle that you won’t be tempted to break into unless absolutely necessary. If you fail to set aside some rainy day funds, you will be forced to resort to debt should you lose your job, fall ill, or have a major unexpected expense. Set up an automatic withdrawal as soon as your salary is credited to start building up your emergency fund. Make this one of your primary goals for 2019. Ignoring your insuranceWho wants to start the year thinking about accident, job loss, fire, illness or death; clearly no one does; but you do need to protect your assets and those you love including yourself. Not having adequate insurance in place can have a devastating effect on your finances when there is a mishap such as flood damage or fire. Yet the simple payment of the annual premium could help one avoid this.Accidents do happen. Nobody wants to be left paying expensive hospital bills or witnessing a family unable to make ends meet because of the untimely death of its primary breadwinner. Make sure your health insurance is up to date and that you have adequate life insurance particularly if you are the primary bread-winner of a young family.Delaying long term investmentWhen you are young it is so easy to feel that you have all the time in the world to start investing. Remember that the great advantage of youth is time and you can’t get it back. Time is a major ally when it comes to building lasting wealth.Even if you don’t have much, just get started. When you imbibe the habit of saving and investing you can take advantage of time and your funds will grow benefiting from compound interest and earnings. The longer you wait, the greater the cost to you. The best time to start investing for the future is now.Borrowing on behalf of someone else. A good friend asks you to help them get a loan from their bank. You agree and borrow in your name on their behalf and sign off on the dotted line. Your friend may have had good intentions at the time of borrowing but if they should run into financial difficulty and fail to pay you back, you are liable to pay the loan back in full. Be very careful in considering such a request if you are approached. Money can destroy friendship so don’t be casual about borrowing and lending.Not paying back money that you oweThis might be a small personal loan from a relative or friend or a large financial loan from an institution. If you have the habit of not paying borrowed funds back on time or even at all, it will all come back to haunt you, as no one will want to lend you money even if it’s just to tide you over a difficult patch. Your credit score is very important, in your business as well as your personal life. If you are in debt, have a plan to pay back what you owe.Investing in what you don’t understandSo many people have been badly burnt from MMM, Swiss Gold and numerous scams. Putting your money in vehicles ...

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Some money mistakes you must avoid in 2023

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Ernest

Dec 29, 2023 5:48 am

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Interesting

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7049580183

Jan 04, 2024 7:57 am

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Nice one

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Nice one

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