COMMON MONEY MISTAKES TO AVOID

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BUSINESS

10 common money mistakes to avoid

Mistake 1

Not valuing your time and treating it like its free.
We don’t know how much our one hour costs. We don’t know how much we ACTUALLY spend when we watch Netflix two hours a day. We don’t know how much we should charge for a project. We don’t understand how our time equals money.

Mistake 2

Spending your time on things that are easy to measure money-wise.
We will spend half a day travelling to one end of the city to save 100USD because we know we will conclusively save that amount. But we won’t spend two hours preparing for our salary negotiation!

Mistake 3

Taking too many loans.
We overindex on our future earnings. And spend more today than we can afford. Loans tie us down. They increase our burn rate. They make us risk-averse. They make us feel like we are stuck!

Mistake 4

Believing that our income is capped.
Our income is not capped. There is no upper limit to how much we can earn. Instead, it is our spending that is capped. We have to spend a bare minimum to live, to survive.
Instead of reducing expenses, focus on increasing income.

Mistake 5

Trying to time the market.
Market is too high. Let it fall. Market is low. Right time to buy. No one knows the highs or lows of a market. The best way to invest over a long term is to invest regularly. Irrespective of the price at that time.

Mistake 6

Investing because of FOMO (fear of missing out)
Everyone is investing in Bitcoin. I should too. Everyone is selling Bitcoin. I should too. Everyone is buying ITC. I should too. Everyone is selling ITC. I should too.
Everyone is NOT you! Invest in your beliefs and research and as per your appetite.

Mistake 7

Renting your time and not owning any assets.
Everyone in a job isn’t going to create supernormal wealth. Because we have to spend time working, to earn. Assets, on the other hand, make money, even when we sleep. Start a company. Own stocks. Create rental income.

Mistake 8

Investing late.
20s is the time to have fun. Will start investing in the 30s. 30s is the time to build a family and enjoy it. Will start investing in the 40s.
The right time to start investing was when you turned 18.
The next best time is TODAY.

Mistake 9

Comparing your money to others.
Money, for most of us, is an outcome. Not an input. It is the result of the decisions we have made, not the reason for the decisions we made. Compare the decisions people made to get to money. Comparing the outcome won’t help!

Mistake 10

Running after money.
Money gives you freedom. Freedom is a privilege. But the minute we run after money we are not free anymore. Use money to earn your freedom. Don’t give up your freedom to earn money.