14 Money Mistakes to Avoid if you want to Become Rich
Never borrow money with interest to start a business (except for salary loans); only borrow to grow your business. This is because business takes a long time to gain ground and begin making profit yet for most of the loans you begin paying back a month later or even earlier. Hence, never borrow to start a business expecting that business will pay back the borrowed money plus the interest.
Never spend money you haven't received. Don't even promise someone money based a promise you have from someone else. Don't hear somebody say, "Ezra come to my office tomorrow at 9am and pick 2m" and you go buy items on credit hoping to clear when the promised money comes.
If u want to ever save, whenever u receive money ensure you don't start spending before removing the savings hoping that you'll save what remains. Normally what remains is zero because as long as money to spend it available what to be spent on is also available. And things to spend on even incite their 'relatives' while when money to spend is not available we naturally find a way of managing. That's why I've learnt to save with FRIENDS FOREVER INVESTMENT CLUB. When I send money there I assume I no longer have it.
When you get an opportunity to meet a very wealthy person never ask for money. Ask for ideas on how to make money. They can even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your objective.
Keeping your seed instead of planting it. Many people stop at saving. It's very, very difficult to save and have all you need to maintain your lifestyle especially after retirement. When you save, your savings are a seed; plant it. When you just keep it some seeds begin to die (eaten by inflation and the likes). That's where I recommend that you read about the different types investment vehicles you can use to grow savings. I am not necessarily talking about putting the money in a business because you can easily lose money on a business. I am talking about putting it in an investment.
Never lend someone money you are not willing to lose. By the time you lend money, be contented in your heart that should the person not pay, you will not die with the money. You should not even lose the person as a friend. If you find the person can fail to pay you and you remain as usual, then lend. If you find you would even hate the person's entire clan, please advise the person to go to the bank.
Never append your signature to guarantee someone on a financial matter if you are not willing or able to pay the money. Do I have to explain that one? No. It's self explanatory.
Avoid keeping within easy reach money you don't intend to use in the short term - don't for instance walk with 100k in your pocket when all you plan to do in a day cost 20k.
Avoid keeping money in inappropriate places eg in socks, under the pillow, in a pit, in the sitting room, in the bra, in a travel bag that you will place somewhere etc.
Spending money on an item that you can do without (at least for the time being). These days when I pick money from my pocket, before paying for something I ask myself: What would happen I don’t buy this? If I find I can live with the consequences of not having that thing, I smile and walk away.
Paying an amount that's not the minimum you can get that same value for. In other words, if you are along Kampala Road and you pay 70k for a shoe that you can get at 30k at Mukwano Arcade, that's a money mistake except for those who have achieved financial freedom.
Wanting to be the savior of the world by helping with ethane in financial need. My sister, brother you are not Jesus. If you find it so hard to say No to a financial demand, you may think you are practicing generosity when in actual sense you are practicing committing (financial) suicide. We are not learning to be miserable here; we are learning to live within the boundaries of reality.
Consistently spending all you earn or more than you earn. It's like having a drum where you have an inlet that's smaller than the outlet. It will never get full. And should the inlet ever reduce significantly the drum will run dry. If you do it the other way round and the inlet is bigger, it will get full and even overflow. Hence, we have to always ensure we are widening the inlet while narrowing the outlet - all the time.
Thinking about short term only and forgetting
about long term or thinking about the long term and forgetting about the short
term. For instance Lydia was told that there's money in land. She saved money
over a long period of time and bought 30 acres of land. Now she has the land
but she is ever broke. She is ever complaining. She's disgruntled and she
doesn't seem to see herself earning from the land in the near future. Now,
let's ask ourselves: Having 30 acres of land and no money to feed your family
or take a child to hospital, is that wealth or poverty? I think Lydia only
looked at long term needs and forgot that she has short term needs that require
money. What of those who find they are one paycheck away from salary? Are they
thinking about the long term needs?