Money helps everyone in a lot of things, well its the only thing which can help you buy anything you want, the less you have the fewer things you can buy, the more you have the more things you are able to buy.
Today, many young people use money in a way which you may ask your self, how much do they have, some may have a little but looking at the way they spend, it just surpasses even what they earn and after some time, they are down. However, everyone makes mistakes, and by learning and passing through such times, we learn how to be better and responsible users.
Find the 5 most common mistakes you should avoid with your money
Spending much more than you make.
Well if you want to have a balanced way to use your money, or always have the money you need, is to spend equal to what you spend.
Although at times it is hard to keep yourself from the life everyone is living, spending enough money, or even less than you make is the only option for you to always be safe.
When you spend more than you make, your debts will increase, not forgetting your bills. You need to learn and make it a habit to always use what you have, well and efficiently for what you really need, then you will be free, happy, and responsible which is better than to keep trying to be someone else.
Not having any goals with what you earn.
When it comes to spending money and saving it, one of the most effective ways to save it is to invest it. Money without a plan ends in no time, therefore, you need to plan and set something you can use your money to make more money. It takes time and effort to be wealthy and secured financially.
Setting financial goals will help you calculate well, your expenses and let you budget for a chosen purpose.
If you have a need lets say, a car, new laptop or phone, you have to sit and see with what you earn how much you can use, save, or invest to get what you want.
Not watching your expenses.
Having a good eye on what you spend your money on will make you aware of how you spend and what you are actually using your money for.
Well, you might say, I have set goals but then not realize what you’re actually using your money for your day-to-day activities. Keeping track of it will let you know whether you need to keep buying that after lunch drink you like or to just have your water.
Sometimes we find that those daily drinks and much snacks are just making your expenses more than you have.
Not calculating risks.
Well, I said you should invest in your money, but part of planning for your good utilization of your money, you need to calculate whatever things you want to invest it in, don’t just say the best way to save is to invest and invest into something worse than just keeping your money, you need to plan and know the strategies which are best for you, to help your investment get profit.
Not having any side money for an emergency.
Emergencies are just like accidents they happen at the most unexpected times, to anyone. Your laptop may have a technical problem or anything like that. Having some money for an emergency can protect you in such situations, saving you from running to ask for debts at the first moment and give you a peaceful mind when you face such situations.
A lot of saving experts suggest that a person should save at least 3 months money for your salary, or even more. To do this you may start including this in your plans until you get it full.
Thank you for reading our stories!
Besides news and trends, Regionweek is a media created to serve African young professionals with information that they can put to work in their daily life. Would you like making money with a side hustle business that you can build in your spare time? Today you can learn how to earn extra money and grow meaningful businesses. Check ressources on: