The game of money can be a fickle one and sadly many people struggle to get
ahead financially because they simply cannot move around certain obstacles
however knowing what these obstacles are and how to manage them is why i'm here
and in this video i will share with you seven money traps to avoid in 2022 and
if you're new to the channel then hit the subscribe button below for more
life-changing content trap number one being impatient there's
no way around it and patience is bad for you it's one of the most seductive
emotional states it's a great way to make life more difficult and also
complicates relationships impatience is like a child playing with a bumper car
game with real life and adult consequences observe impatient people
they will not hesitate to do you wrong if you do not do what they expect you to
do they are almost always in a hurry and cannot wait to get whatever it is they
have their eyes on however to those who intend to keep you impoverished
impatience is a important social tool how you ask stay with me and i'll
explain soon in this video you see we used to harmonize ourselves with nature
our lives depended on effective interaction with the physical world in
which we live the source of our nourishment however after the advent of
the industrial revolution the development of machines everything
changed machines took over from nature and became the center of our lives and
like nature we were shrunken merely servants of the market system and that's
why they keep you impoverished you begin to compete in terms of speed with
machines but since you're not a machine you only end up frustrated and burnt out
the machine was sublime now people have become dependent on different kinds of
machinery this includes political machines government machines finance
machines war machines and mechanized work that is why despite all the
improvements to our living conditions most of us feel an indescribable loss
we've never been this good or this bad impatience will leave you wanting to
harvest your plants before they arrive that is if you have some patience
because normally an impatient person would eat the seeds rather than plant
them in the first place job number two thinking saving is as good as investing
when you listen to the evening news and hear that the stock market is having a
great day do you find yourself wishing you were invested if so you're probably
not alone according to a gallup poll only 55 of americans invest in the stock
market generally people have the desire to invest but while some are intimidated
most people think that saving and investing are the same things saving
investing are often used interchangeably but there is a massive difference saving
is putting aside money you don't want to spend now for emergencies or a future
purchase it's money you want to access quickly with little or no risk and
minimal taxation financial institutions offer a number of different savings
options on the other hand investing is buying assets such as stocks bonds
mutual funds or real estate with the expectation that your investment will
make you money investments are often chosen to achieve long-term goals
generally speaking investments can be classified as income investments or
growth investments consider this if you deposit two thousand dollars in a
savings account with a three percent annual return that will come out to
three thousand six hundred and twelve dollars and twenty years excluding taxes
keep in mind that this money might be at a lesser value if inflation continues to
rise however the same two thousand dollars invested in a stock mutual fund
earning an average of ten percent per year will rise to 13
455 dollars in 20 years outside of taxes choosing between saving or investing
will depend ultimately on your target for your money and your risk tolerance
however for the example you can see that investing is much more lucrative than
just saving your money in quest to becoming rich and if you understand the
difference between the two make sure that you smash that like button because
investing can definitely help you grow your wealth trap number three spending
no time or money on self-improvement most of us suffer from this to some
degree and very few of us take enough time to manage our financial progression
these days sadly there's so much demands for our time from work to family
friendships and home projects the list is endless and all seeking our attention
with so many competing priorities it's really hard to choose the most important
thing to spend time on not to mention that this process alone consumes a lot
more energy we may not even know what tasks to tackle and how long we should
spend on each regardless of all these issues you simply have to spend time and
money to improve yourself after all i better you can handle all those problems
better so how can you go about this i'll explain to you as we proceed in this
video your habits and actions have a profound effect on your overall
well-being and happiness your current situation has been largely determined by
your actions habits and decisions in the past by making small changes today and
investing in yourself in positive ways you will eventually create a bright 2022
and beyond for yourself and you'll be very happy that you did one of the
easiest ways to commence your self-improvement project is to make up
your mind to spend more time on positive resources the time some people spend
online on pointless websites is actually shocking many people spend all their
time checking facebook countless times a day and updating their status reading
bad news and watching pointless videos on youtube this not being one of them of
course now don't get me wrong these things are not hazardous but failure to
apply moderation is where you get it wrong you need the positive energy that
comes from positive things and websites you can also begin to read books reading
is a great way to invest in yourself it's also a relatively inexpensive
activity and generally costs nothing with the advent of the kindle ipad and
nook finding great reading materials just got easier regular reading has
tremendous benefits it stimulates your imagination improves your vocabulary
increases your general knowledge helps you relax lets you touch the minds of
great thinkers helps you solve problems and can be immensely fun almost all
great leaders in this world spend time reading generally you need to take time
to ensure you indulge in activities that bring you positive energy trap number
four taking on too much debt if you're having trouble making debt payments or
your payments are so high that they leave you with no money to spare at the
end of the month then clearly you have too much debt even if you can manage
your payments having too much debt can lead to other financial problems these
include not being able to save money missing your bills and borrowing more to
stay afloat and there are certain signs that you have more debt than you can
handle firstly you should get a copy of your credit reports and most recent bank
statements from your creditors to make a list of your accounts and current
balance this will tell you the exact amount you owe if your debt payments are
higher than your income it's a sure sign that you have too much debt not having
enough money for your monthly payments means you occasionally miss payments
making your debt problems worse late payments trigger penalties and also
higher interest charges taking a close look at your monthly expenses can help
you understand what you can eliminate to better cover your bills also when you
begin to avoid phone calls from your creditors then you're definitely in too
much debt debt collectors start to call when your debts have become overdue and
possibly unpaid another sign is borrowing to pay back your debts if you
have to pay your bills with loans from family friends credit cards or cash
advances you obviously owe a lot of money and eventually you'll have no room
to borrow money and you'll have to face the debts you've accumulated with your
creditors and loved ones when your financial rules spill over into the
workplace it's time to do things differently losing your job is the last
thing you need right now because your loss of income could plunge you into
financial abuse and one more proof that a person owes too much money is when
that person has to empty his or her savings to pay off debts if you run out
of savings to pay off debts then you know there's a problem trap number five
panic selling stocks when the stock market goes bearish and the value of
your portfolio drops rather than ask should i withdraw money from the stock
market ask what should i not do i'll be explaining the wisdom in this to you
right now the first thing with stocks are down is not what to do but what not
to do simply put don't panic panic selling is often people's first reaction
when stocks fall which leads to a drastic drop in the value of hard earned
funds it's important to know your risk tolerance and how this will affect price
fluctuations in your portfolio called volatility investors can protect
themselves from market risk by hedging their portfolios through diversification
which includes owning a wide variety of investments a stock market crash due to
a recession or an external event can put many investment principles to the test
such as risk tolerance and diversification so if insecurity is why
you want to sell off your stocks then it's important to remember that the
market is cyclical and a fall in stocks is inevitable however a downturn is
temporary it's wiser to think long term rather than panic selling when stock
prices are at their lowest trap number six investing in hot stocks the appeal
of hot stocks is understandable your neighbor who drives a fancy car talks
about some hot stocks he loves or you can find a hot stocks listing of stocks
that are rising online if a stock is up 10 today or doubled last year it must
have some value right of course who doesn't want to double his or her own
money in one year nonetheless hot stocks are problematic and it's often better to
invest in more boring and sleepy stocks that's the result of a study conducted
by two esteemed investment experts the research revealed that less popular
stocks outperform more popular stocks and often offer less risk and volatility
this is interesting because we're often taught that taking more risk can lead to
greater rewards however research shows that while this risk reward dynamic
holds across different asset classes it doesn't within a single asset class the
researchers explained that following crowds or herds leads investors to
popular stocks and hurts their performance however smart investors
stand out from the crowd by buying lower priced securities hence getting higher
returns tribe number seven not starting a side business or a side hustle there's
no doubt in the fact that the recent pandemic has changed the way we work
socialize and live our lives and has forced many of us to think of alternate
ways of making money that means letting go of the fear of going after side jobs
and businesses however many people fall into the trap of not starting a side
hustle or side business even though they know that they need the extra money time
is needed for the entrepreneur's vision to become a profitable venture however
the financial rewards of owning a business can far exceed a paycheck an
annual bonus one major reason people fail to get into a side business is due
to drive and extraordinary commitmented demands in addition to the financial
rewards from business success a number of tax breaks are available to business
owners that are not available to people who work for someone else in conclusion
most people let their fear of the unknown trap them keep them impoverished
nonetheless going into 2022 you'd be better off if you don't fall into any of
these traps explained in this video thanks for watching if you want to go
from the life you have to the life you deserve then hit the subscribe button
now