On this channel, we've talked extensively about how to make money.
Also, we've talked about the habits to accustom ourselves to be successful. Today, however, we
will be looking through some things we shouldn't be doing with our money in 2021. So grab your
financial journal because I can assure you you're making at least one of these money mistakes. But,
don't worry, after today, you can turn your life around for the better with what you will learn.
1. You're not negotiating your salary when starting a job.
Yeah, I said it! Most of you guys aren't willing to negotiate your salaries.
Mainly because you think you're going to come off as aggressive and fail to get the job.
I'd like to remind you that firstly, you have nothing to lose if they
don't take you up for the positions. Because you already didn't have a job
and are looking for one. Or you still have a job, and you're just exploring other opportunities.
Secondly, you need to set the tone of your relationship with your employer from the get-go.
A good employer will do anything to get you onboard after asking for a salary negotiation,
since they know such fearlessness will be an asset to their company's growth.
So next time you have a job interview, be well prepared and negotiate your salary.
You might just end up surprising yourself how high these companies could go if nudged.
2. You don't have a detailed idea of your spending’s.
There is a popular saying that goes like "you can't manage what you don't measure." I stand
by this saying because how do you begin to estimate how much you're spending? If you don't
track your spending, you have no idea if you're overspending, underpaying, or right on track.
The smartest and most successful people amongst us work with budgets. And I don't mean simple
rough draft budgets, no. It's about detailed budgeting where every bill or expense has
a price attached to it. They can account for all the money they made within the last three
years without even blinking. Budgeting is the secret ingredient to success. I encourage you
to try creating a good budget within your limits and see the difference it makes.
3. You're not making money in your free time. Considering most of our jobs are very hectic,
most of the time, we just want to nap or waste our free time doing useless things.
We play video games with friends or go out clubbing on weekends,
even sometimes immediately after work. What many of us don't realize is that we are wasting
our precious time. The time that we could have been spending making ourselves some extra bucks.
If you want to be successful, you have to detach yourself from this money mistake.
Take up a hobby in your free time and find a way for it to make you some money.
You could pet-sit, bake cakes or even cater at events. You could earn some extra cash,
but only if you are willing to better yourself. How about starting a business out of your
part-time hustle? Here's an idea, doesn't a bakery uptown with your name on it sound great?
Then what's holding you back?
4. Excessive spending We all live by the slogan YOLO
(you only live once), which unfortunately has us making very unwise decisions.
We're all wired to think that we earn to spend. Thus often, you'll find yourself spending beyond
your budget, because who doesn't deserve a 1st class dinner because the week was hectic.
Well, that is not such a great idea as it only takes money out of your pocket.
You need to understand that money has four jobs:
1. To be invested 2. To be saved
3. To be spent 4. To be donated
Your spending on one of these factors only is a clear indication of a lack of financial literacy.
Slowly without even knowing, you'll have maxed out your credit and will be in some serious debt.
Cut out those small spending’s here and there as they ultimately add up.
This point also takes us back to creating a workable budget.
5. Panic selling investments This point is for those of you who are
a little further along in the financial discovery journey. They've taken up some investments,
such as buying stocks. Truly with such a great step, 2020 brought with it a great shock.
A pandemic that shattered economic growth and saw almost every portfolio drop by 30%.
It was such a great loss that led to many waves of panic selling shares in a single week.
Scared that the stock prices will further drop, and they'll experience losses.
The scariest but best approach when it comes to stocks is buying and holding.
No matter the short-term changes, you need to resist the urge to short-change yourself.
In the long run, this strategy will help you make unimaginable profits.
While also restricting your desire to constantly check your account balance.
6. Not having an emergency fund. Money management has remained the biggest concern
for many who are keen on their spending. Suppose you're hoping to spend your cash wisely. In that
case, you should consider having an emergency fund that caters to time-sensitive abrupt expenses.
Right now in case you fall sick, can you afford the cost of seeking medication,
or maybe are you covered by a health insurance policy? If you don't have either, please know
that you are trading on a rather dangerous path. Some financial experts, however, defer, and prefer
settling debts before setting up an emergency fund. The smart move, from my perspective,
is to keep as little as you can comfortably save without straining on your debt payment.
After all, if you save a dollar a day, by the end of the year, you'll have about 365 dollars.
And don't you think that will unburden some of your pressing financial emergencies?
In my opinion, it does.
Ok, So, I would like you to do something for me.
Pause this video right now. And do me a huge favour by hitting the “like” button.
If you did, you’re awesome, and thank you so much for your support.
7. Buying everything on credit
Credit cards are the thing we love to hate. And why wouldn't we while they have been able to
make life easier and harder at the same time? Easier because we can get some items we can't
afford and pay for them later. At the cost of some interest, though. However, it makes life
harder because so many of us have managed to mismanage our credits. Leaving us deep in debt.
I assure you it's a bad idea to buy groceries and gas on credit because you're buying each of these
items on interest. Which, in a nutshell, means you're paying a higher price for these items.
Also, this type of spending has a way of making you lose track of your expenses.
You should always ensure you pay your credit card bills in time to avoid fines.
In addition, limit your credit card purchases to average-sized purchases to avoid the extra costs.
8. Not having a credit monitoring alert set up.
Financially speaking, there are forms of good credit, and others bad, that may sink you in
debt for life. To add salt to the injury, identity theft and other fraudulent activities have become
more common today, with numerous hackers on the loose. To keep yourself safe from servicing
credits you have no clue about, you should set up a monitoring alert set up together with protection
theft identity services. You can check online for such help. From what I hear, these online monitors
keep your information safe and keep track of your information on the dark web in case somebody tries
to hack you. I hope this information will help keep you safe from unnecessary losses.
After all, don't you think it's a smart idea to give your cash a little extra security?
9. Lending money to friends that you don't have
This money mistake is common among twenty-year-olds. But don't worry,
the good thing is that you'll grow out of it as you get older and learn better.
Refrain from the idea of wanting to be liked by your friends, so you lend them money.
It will leave you begging people for your money, depressed, and with broken relationships,
especially when you're trying to make ends meet for yourself. You'll constantly be looking at
them spending money on holidays and new clothes. While you think how they would have used that
money to pay you back instead. Save yourself the heartache and clutch tightly to your purse,
especially before you're financially stable enough to say goodbye to your money without crying.
10. Having unrealistic goals
When we were younger, we wanted to be princesses and princes.
We had no idea how people became these things, nor did we care to know. But we're grown now, and we
can't live in our deluded fantasies. That's why each of us needs to aim at an imaginable profit,
drafting a clear picture of where we want to be in the next ten years.
And a very clear and flexible road map of how to get there.
You need to have a financial plan if you want to have that mansion, a red BMW dream of yours,
turned into a reality. You could even be creative and use a vision board. This will make you super
motivated to achieve all the goals you've set yourself. Check out some YouTube videos of
how to create a vision board with realistic timelines. If you need to save up to secure
your goals, ensure you keep that money in a different account to avoid dipping into it.
11. Allowing the lifestyle creep to occur on you.
If you've been broke before, you understand the entitlement that comes when earning those extra
dollars don't you? There is that feeling when you have money that you worked so hard to acquire
and come across something you couldn't afford before. We have to be able to identify our needs
and wants separately, and once you get that salary increase, that's not the time to start moving into
a bigger house or getting new jewelry. Rather than spending on expensive things you don't need,
why not invest in short-term goals that would regenerate your wealth?
I am sorry if I offended you, but as long as you don't have a financial plan, you will still end
up drowning in the same money crisis as everyone before you. I know scribbling down a plan might
sound boring though, but this will save you from many financial mistakes you wouldn't have
been able to avoid had you not had a plan. Can you say no to an outing during your free time?
That's the same reason why you won't be able to deny spending a few bucks from your salary
on something irrelevant. If you're looking to escape these money mistakes this year,
be sure to follow this advice. It will work wonders for you.
12. Not taking out insurance.
If you're like me and you dreaded picking up your iPhone after dropping it for the hundredth time,
then this is for you. Take out insurance for your phone,
tv, health, and student insurance. It's usually only a small amount that will help you float
amid a shipwreck. And the best example of this is the onset of the coronavirus.
Many people were affected because they didn't have money for their medical needs. It has been
a devastating two years for employers, employees, and business owners all being affected. Imagine
the type of umbrella those who took insurance for their businesses had during this time.
Be wise and enjoy some of the free insurance companies offer their clients.
In summary, it's so essential for us that we understand the money mistakes we make.
And how to avoid them if we want to be financially free one day.
Share this with friends and family to help them avoid making these money mistakes. You'll be
amazed at the difference stopping these habits will make in yours and their respective lives.
So, thank you guys so much for watching today’s video. I hope you’ve enjoyed and
found value while watching it. If you did, go ahead and give it a thumbs-up,
and if you are new here, welcome and subscribe for more content like this.
With that said, have a good day, and I'll see you all in the next one.