Most times, the reason people make so many wrong decisions is that they’re unaware of what the right decisions would be. Perhaps you’re spending on the wrong things or you’re spending the wrong way, not because you want to, but because you’re unaware that you really shouldn’t be doing that with your money. Well, if you’ve ever wondered what the Dont’s with your finances are, then you’re just at the right place.
Here are five things you should never do with your money.
Making Large Purchases Without Taking Account of The Full Cost
This is an error most people make. Yes, it’s your money and you can do as you deem fit with it, but it’s highly advisable that you don’t make large purchases without considering the full cost. You can buy something as simple as AirPods or a pair of sneakers, without having to think about it twice, especially depending on your financial strengths. But making a large purchase such as buying a car or land is not something you should take lightly.
Think about all the pros and cons involved. Evaluate why you need to make that purchase and what you’d stand to lose if you do. Consider all the other fees attached to the down payment, such as maintenance, servicing, etc. If you observe that in addition to all the fees, you might not be able to afford it, then it’s important that you do not make that purchase. At least at that time. You can begin a savings plan to enable you to meet up to the cost, without having to rush into making payments unprepared.
Being Unintentional With How You Spend
Ask any successful man or woman and they’ll tell you that the secret to such great success is intentionality in every area of their lives. Being intentional with your spending is as crucial as your financial goals. In a bid to reach your financial goals and meet your needs, you need to avoid impulsive and unintentional spending. Before you spend a dime, ask yourself what the pros and cons of that expense would be.
Have a plan and budget for your money. Don’t ever leave your money to chance. Be deliberate and intentional, rather than passive in your approach to spending. You can start by working with your vision. Create plans and set limits for yourself. This is intentionality and it’s highly important that you practice it with your spending.
Cashing Your Paycheck Immediately
With technological advancements and innovations, employees no longer have to receive their salaries in form of cheques or cash. All the money now goes directly into their bank accounts, and while this was designed to enable convenience, it has now become a problem. Once you get credited, you begin to see all the things you want and “need to get” and in two weeks, all the money is gone.
This is something you need to stop doing with your money, make a provision for part of your pay to be saved. Do not spend it all. You could even opt for automated savings, which will prevent you from spending your savings.
Putting All Your Money in One Investment
We all love the idea of Investments, but it is never advisable to have all your money in one investment. There is the need to diversify your investments. While you’re trying cryptocurrencies, also try out agriculture, real estate, etc. By diversifying your investments, you give your finances a higher chance of growth and survival.
We know how it gets. You’re feeling really down, and all you need to get back up is a day at the mall. While this may have been working in the past to make you feel better, it’s something you need to stop doing to your money. It’s called retail therapy and it simply refers to shopping to improve your mood. They also refer to it as “comfort buys” and it’s mostly associated with people who buy a lot of items during times of depression and anxiety. Yes, you can get emotional, but there are other ways to deal with your emotions than making your bank accounts suffer for it.
Signing Contracts You Don’t Understand
There’s no quicker way to lose all your money than to put your signature on a document you can’t make sense of. Contracts are legally binding agreements between people, and before you sign any contract, you need to be sure that you understand every last clause. If you don’t understand what you see, then seek the counsel of lawyers to put you through.
Carefully read through the terms and conditions of your agreement, so you can avoid situations that will lead you into financial dilemmas.