Did you know that almost 50 of Americans are in a constant state of worry about
their finances while I hate to say it most of these worries come from their
own Silly mistakes and in this video I will share with you seven dumb money
mistakes you need to stop making and how to fix them and if you're new to the
channel then hit the Subscribe button below for more life-changing content
money mistake number one paying yourself lost when it comes to your money it's
okay to be selfish in one way you should be selfish is by paying yourself first
you see the average person makes a mistake of collecting their paycheck and
paying everyone but themselves they pay their landlord their credit card company
the government and then if anything's left they collect the scraps that are
left behind does it sound like the right way to get head financially I don't
think so leaving your future financial success up to lock is a strategy few
people will advise and as such it makes much more sense to make yourself your
first priority so you can ensure that you're saving and investing towards your
future rich life so now that you know how silly paying yourself a loss truly
is let me share with you tried and tested strategy for paying yourself
first which will ensure your future financial success first set up a budget
with your after-tax income and expenses calculate how much you can reasonably
save every month then ask your employer to deduct that savings amount from your
budget in two equal amounts assuming you're paid twice monthly by deducting
this amount from your pay you can route said cash into a saving or investing
account and ensure that your financial needs are taken care of before you start
dishing out money to everyone else now I know some people are going to be
wondering how much you should be saving every month so let me share with you my
take on some possible savings Target for the average person I think saving 10 of
your take-home income is a good start however if you want to see real
Financial progression I would work towards a savings rate of 30 or greater
while these higher savings rates aren't easy to achieve by cutting out
unnecessary expenses and working to raise your income they are attainable
over time money mistake number two not reviewing your credit card statements
this mistake is a really big one you see when most people receive their credit
card statements every month month they take the envelope walk over to the
garbage can and drop it in often without even opening it now I know most people
especially chronic credit card users aren't that excited by the prospect of
routinely reviewing their credit card statements but this is a practice that
you absolutely need to implement and I'll tell you why now first more likely
to not at some point in your life you'll be subjected to credit card charges that
you definitely didn't transact yourself whether that's due to a mistake by a
company erroneously charging your card or someone stealing your identity
reviewing your statements ensures that your charge is accurate moreover when
going about this regular review process where you're going to start to develop
is a Keen Eye for useless expenses better stated as opportunities for
savings for instance if you realize that last month you racked up a hundred and
fifty dollars worth of expenses at Starbucks then it's probably time to
reconsider Your Love of pumpkin spice lattes each time you review your charges
you'll start to identify areas for improvement and this in itself is a step
in the right direction and once you get used to this normal practice over time
you're going to start to see something mad magical happen what will happen is
that you will start to become more diligent in your tracking of all parts
of your expenses your view will start with your credit card charges we'll move
on to your cash and debit expenditures and then enter your income and
Investments remember what isn't measured isn't managed so don't make the dumb
mistake of ignoring those statements from here on out money mistake number
three saving rather than investing have you ever thought about why we're told to
save our money growing up most of us were advised to put our money into Banks
where it would be held for safekeeping and I'm here to tell you that Beyond
setting aside some money for emergencies this is not sound advice you see for
years banks have been pushing people to put their money into their accounts and
while they may make it seem as if it's meant to help you out and gain a big
amount of appreciation through the meager interest they pay you in
actuality it is very self-serving Banks want you to save with them so they can
take your money and land it out to others so that they themselves can make
profits and align their own Pockets now saving your money in a bank does make
sense from a practical standpoint stashing it under your mattress is not
advisable in any way but the truth is that many people are stuck saving money
when they should be investing it instead in a standard savings account your money
is slowly being eaten by inflation as it's investing that will make it grow
instead fortunately investing doesn't have to be overly complex in fact some
of the simplest Investments are the best let me share with you a few examples of
how you can invest without much effort on your end first you can invest in
index or mutual funds simply set up an automated contribution from your savings
account to your investment account and have a regular purchase plan set up this
way you take the annoyance of manual investing off your plate and can be
assured that you're investing in assets it will be profitable in the long term
alternatively you can invest in assets like real estate a property will always
have practical use and if you have the capital for a down payment that this is
another option for you to consider the takeaway Point here is as follows if you
want to lose money save if you want to make money invest money mistake number
four changing cars every few years there's no doubt in the fact that there
is a heightened level of confidence in the esteem that comes with driving
around a new vehicle if you've ever owned a brand new car then you'll know
what I mean however as nice as it is to have a new car or even trade in for a
used one changing cars does come with quite a hefty cost the major cost
associated with acquiring a new car is of course the purchase price in fact I
almost fell off my chair when I came to learn that the average price of a new
car in 2021 was just under forty thousand dollars if only the cost
stopped right there though then you need to factor in the cost of selling your
own car like the advertising fees the taxes Etc however one of the most
punishing costs is well you guessed it the depreciation if you buy a brand new
car the second those tires roll off the lot the car instantly loses 10 percent
of its value then 12 months later the car is now worth just 80 percent of that
initial sticker price fortunately you can avoid some of these costs by buying
used however you will always be incurringly selling fees at the end of
the day if you want to be smarter with your money then the best strategy when
it comes to car ownership is to buy used and drive the car until it no longer
runs this will result in a lower purchase price incurring less
depreciation as well as minimizing all those transaction fees I just mentioned
money mistake number five investing based on hype and not fundamentals how
do you go about picking a stock to invest in if you're like most people
then you probably decide based on what stock everyone is talking about in the
moment however while this strategy can work for those who get an early
generally investing based on hype and not the fundamentals of a stock is a
losing Endeavor in fact this notion doesn't just relate to stocks but all
assets in general for example there was a period of time where everyone and
their grandmother was investing in Dogecoin as at the time it was the
hottest asset on the market sure some people did become millionaires from this
particular cryptocurrency however for every success story I can guarantee that
there were thousands more people who were left in the dust therefore if you
want to avoid this dumb money mistake make sure that you do proper research
before putting even a penny into any asset holding for example with stocks
review the company's financial statements read up on their management
team assess their current and future plans for our operations by
understanding these elements I can guarantee that you'll enjoy much more
investing success than 99 of other investors money mistake number six only
relying on raises and promotions to make more money do you remember when getting
a job as a Holy Grail to achieving financial success no me neither because
it's been quite some time since jobs have been a ticket to the financial life
you want to live now you may be wondering why that is and I will explain
why relying on raises and promotions is not an ideal way to get ahead
financially first of all getting Razer promotion is not within your control you
can do the best job possible by working late adding a ton of value to your
employer but if the economy is down in the dumps and regardless of your efforts
a Razer promotion probably won't be in the cards second if you are fortunate
enough to get a raise then it sounds likely that said raise will afford you
the ability to get ahead financially most raises around two to three percent
which is exactly where inflation stands presently therefore if you rely strictly
on raises your ad best going to be keeping up with the right Rising costs
of living finally to put it bluntly employers don't have much of an
incentive these days to even give you a Razer promotion in the competitive job
market we're in today companies are trying to squeeze out every penny of
profits they can and one of the ways that they do this is by keeping their
expenses which includes your salary of course low now you may say but if they
don't promote me I'll leave and this is true however they will just replace you
with the next person in line therefore for all these reasons please do not rely
on your nine-to-five job as a gateway to financial prosperity instead build
alternate streams of income invest that income and then in time that wealthy
desire will be yours money mistake number seven not negotiating lower
mortgage rates there's nothing like getting the keys to your brand new home
the level of excitement you'll feel is truly unmatched but unfortunately so is
a dread that comes along when that first mortgage payment comes due now one dumb
money mistake you need to avoid is allowing yourself to fall into a
situation where you're subjecting yourself to a higher interest rate on
your mortgage than is required now you may end up in this situation for a host
reasons which I want to briefly go over now first your credit May suck if you
haven't built up proper credit or have been delinquent in your repayments then
you absolutely must resolve these issues before you even think about taking on
any type of debt especially a mortgage second you need to know that as someone
who needs a mortgage or a buyer and this means that you can shop around don't
just accept the First Rate someone offers you there are numerous creditors
looking to offer you money and the one that offers the best rates everything
else being equal of course should get your business in fact if you want to
ensure success in your negotiations acquire a few quotes and use them
against the companies you're considering borrowing from the competition will
spark better deals and those reduce rates will save you thousands over the
course of your mortgage's life hey it looks like YouTube thinks this next
video is the one that will change your financial life forever give it a watch
end let's see if they're right