I am really excited about what we learned from the last article and this is the concluding aspect we’ve been waiting for. Before we start dealing with the other financial mistakes, I want us to do a little exercise. Now:
”Close your eyes for a minute and picture yourself at the age of 70, looking back on your life, especially your financial choices. Which decisions do you think you’ll be happiest about? Which ones do you think you’ll regret?”
That one minute of thought felt scary to me, I really don’t want to make those huge financial mistakes and have regrets. I’m sure you don’t too.
Remember: ”Spend less than you earn over a long period of time and invest the difference”.
Ignoring Additional Income Opportunities
For some of us, it must be really difficult to live on monthly paychecks alone and for others you may think your current job pays the bill and you don’t want to waste your personal time.
You have to understand that nothing is guaranteed and everything ends. If you find yourself having other income opportunities, you should engage in it. If your current job is not the night to night type, you should definitely consider these jobs if available. You can engage in freelance jobs on Upwork.com, Fiverr.com or Prepclass.ng for extra income. Doing this will not only increase your income, it will also improve your skill and make you grow.
I absolutely understand how bad the economy is right now, but once we are over this recession and our economy is stronger, I want you to take advantage of the additional income opportunities that come your way.
Deep in debt
If your debt rate is on the increase, you are certainly not alone. You have to understand that there are situations when you just have to borrow and there is nothing wrong about that. But you have to do dig your way out of that debt, show people you are credit worthy. Growing up, being a credit worthy person is one of the lessons I learnt from my mum.
If you are not in debt, avoid getting into debt, unless it is for the purchase of a large item that has potential for appreciation, such as land or running a business.
This might sound weird but don’t use your savings to pay off debts and for the older ones, do not use your retirement fund to pay off debts. Withdrawing from your savings account is easy, but the hard part is paying back into the savings because it is tough to do it. You will realize that, when you pay off this debt, the urgency to return the money leaves you, you become relaxed and the cycle can continue till all your savings is wiped out.
Before you borrow, you should clearly have a plan of paying back and work towards it. Never depend on your savings to do this. But in the case where using your saving is your only option to pay back, keep the ‘’I need to pay back into my savings account’’ mentality in your head.
Which of these mistakes can you relate to? What are the financial mistakes that you’ve made? How did you recover from them? Let me know in the comments section!
**If you have other options on additional job opportunities, kindly provide it in the comment section to assist other readers.**
Until next time,