3 things you need to become rich... according to Bill Gates.

 

11 money mistakes that can stand in the way of your prosperity.

Money. It is the thing that we are most want and most strive to have… well with the exception of maybe love. But if in love mistakes are made and it doesn’t really cost you anything, with money mistakes can be extremely expensive – in the direct sense of the words.

So, what money mistakes can stand in the way of you being successful and rich?

 

1. You go for groceries when you are hungry.

2. You do not see the difference between ‘want’ and ’need’.

3. You try to keep up with trends.

4. You have several of everything.

5. You are not counting your income.

6. You are not saving up.

7. You aren’t paying your credit card debt.

8. You pay attention to the price, not the quality.

9. You spend more than you make.

10. You don’t plan your budget.

11. You spend on the wrong things in the wrong time.

 

groceries

1. You go for groceries when you are hungry.

Yes, I am diving right in. We spend the most money for food and drinks. And we all know that going shopping without having eaten first can be damaging to the wallet as you simply want everything you see regardless of the price. The decision for this? Just have a dinner or a light snack before going shopping. You’ll see the difference.

 

 

 

Wantvs.Need

2. You do not see the difference between ‘want’ and ’need’.

WANT and NEED are two different things. And we need to see a clear difference between them. Do you need a new car because the old one is not drivable anymore or do you want it because your neighbor just got a new car? Do you want to go to a restaurant to avoid washing the dishes, or do you need, because you have nothing to eat at home and you are super hungry? Distinguish between the two.

 

 

trend

3. You try to keep up with trends.

New clothes, techs, cars, food – all of that always costs a pretty penny. And the newer the model you are looking at the bigger the price. There is absolutely no shame in dressing in last-year’s collection or having an iPhone that is 2 years old. If anything, those are clever decisions.

 

 

 

several

4. You have several of everything.

What I mean under those words is that you buy stuff when you have the exact same thing which is not broken and you can still use it. A lot of us has several of everything just because we wanted to buy something new (Point №2 J). Stop buying stuff that you do not necessarily need! That is going to save you ton of money.

 

 

income

5. You are not counting your income.

You might know how much you are making, but have you really counted your income-spend ratio? You need to understand what percentage of your income is wasted and what percentage is left, so that you can plan ahead. Count everything down to the last penny ad you are going to have a full understanding of your wallet.

 

 

 

save up

6. You are not saving up.

For the most part people tend to look for a job that brings an income where you can save up. But even then it is possible for us to start spending everything down to the last dollar and lose all of the perspective for savings. That is a huge no-no in the world of personal finances.

 

 

 

cc debt burden cities

7. You aren’t paying your credit card debt.

Credit cards is like a drug. You can spend money which are not yours and you can do it fast. And you can do it without even noticing. And then you have percent piling up and growing into times more than you have spent. Not a particularly good experience. Pay your debts off on time so to escape this fate.

 

 

 

Price Vs quality

8. You pay attention to the price, not the quality.

It goes without saying that when it comes to clothes, footwear, home appliances and cars it is better to buy something more expensive or a little over your budget and use it for many more years than to buy something cheaper only to replace it within a few months or years, depending on what is the purchase. A stingy person pays twice – such is the old saying.

 

 

 

spend less than you earn

9. You spend more than you make.

Even though it is hard to imagine, it is possible to spend more than you have been making. That where all the debts and credit cards loans are coming from after all. Here you really need to look in the mirror and have a talk with yourself. You need to change your ways ASAP! You are in a self-made financial trap.

 

 

 

plan budget

10. You don’t plan your budget.

Budget is something that need thinking ahead. Budget needs to be all figured out. You need to put money for rent, appliances, gas for your car and so on. Everything that is left is yours to put aside and live off. That is a basic budget planning you need to adapt.

 

 

 

wrong time

11. You spend on the wrong things in the wrong time.

You really need to sort out your priorities. Spend on the needed things, especially when money is tight. That will save you the embarrassment of asking for money when you need it for a good reason.

 

 

Do you make any of these mistakes?

 

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