MODULE 4: Money, Lesson 5
10 Money Mistakes to Avoid
Adnan Ul Haq
10 Money Mistakes to Avoid
Adnan Ul Haq
To lead a happier life and stabilize your financial situation, you need to avoid some mistakes. Let's have a look at these mistakes in detail:
Money is like water; it flows where it wants. If you hold onto money, then money will hold onto you. So do not ever try to avoid money or run away from it. Instead, enjoy the pleasures money can bring, and it will bring even more.
All the basic necessities of life are fulfilled by money. You have to earn money to get all your needs and wants.
Time Makes Money
Many people don't make much money because they approach it from a very logical standpoint. But let's be honest: Life isn't some mathematical equation we can randomly solve to make a lot of money.
Life is all about experience, and if you're going to have fun, you might as well get paid while doing it. But, how do you actually "do" that? Simply by working fewer hours and making more money. For example, a laborer works the whole day and gets a minimal amount of money, while an engineer works a few hours and gets a handsome salary.
If you are unable to make money from your time. You have to trade your time for money by earning a living. Invest part of your time in meeting people who will give you a reward in exchange for your time.
Money is Evil
To make money, you need to acknowledge that it is a tool and that it is something you can use in your life. It does not have to become an obsession or your master; it can be a friend. Just remember that there is a danger of it turning you into a materialistic and greedy person if you do not keep yourself in check.
But getting away from it by saying money is evil and it’s not a good thing. You had to have money for your basic needs and to have a better living.
Fear of Charging
When someone doesn't have money, they may be afraid to charge for their services. They think that they have no value. This is the biggest problem. A rich person will be willing to charge for his or her services and will be happy about it. The rich person works hard and then sends an invoice for payment and makes sure to come to an agreement with the client beforehand on the payment schedule.
A poor worker doesn’t ask for money. If someone asks them to do something, they don't demand payment. If you charge people, they expect more work from you. This is an important psychological truth: People who charge for their work are expected to do more of it; those who give it away are not liked.
Remember the value of your time and learn to charge accordingly. Charge all your acquaintances, friends, and everyone you know. Whatever service you give, make a profit from it.
Spend Before Investing
You can't spend before you invest. Make a budget, and stick to it. If you receive your paycheck every week, put away 40 percent of your money in savings and treat yourself to the rest. Then, think about how to spend the remaining.
You have to prioritize. Put your money into things that will bring you the most return, and avoid wasting it on things that won't pay off. Mark your expenses, and do not spend extra on your unnecessary wants.
The scarcity mindset is when we believe there is a lack of money or an opportunity, we are too fearful to act. We hold on tightly to what we have and don’t take chances.
What if it all disappears? Scarcity implies that there is not enough for everyone in the world. However, there is plenty of money and plenty of opportunities for those who understand that there is room for growth and expansion. A big man or woman who looks for a big opportunity holds the great mindset needed to reach that goal.
The world has a lot of money. You need to get that money. So, don't keep your mind tight but keep it open. Open your thoughts, and you get the money easily.
It can be easy to think that it’s a safer bet to just play it safe. But while safety may feel good in the short term, you won’t get any bigger rewards if you never take any risks at all.
Trying to avoid risk altogether is foolish. You don’t always get a reward for taking risks, but you never get a reward for not taking risks. The more you try to play it safe, the more likely you’ll be poor. We have to manage our risks and find a good balance between being too uncomfortable and risking too much money.
You should spend when the time and place are right. Consider a house that was valued at 15 lacs much more expensive than the one you bought for Rs 10 lakhs, but still in the same area. Ultimately, it's your own decision whether you want to spend Rs 15 lakhs on the house or not. But, think of it as an investment you will be able to sell the house for 20-25 lakhs in three years' time, hence making a profit of 5-7 lakhs.
If you are spending in a way that benefits you, you should definitely follow that pattern. It’s not smart to think like a poor person. When you save money, it decreases in value because it’s kept in the bank. If you invest rather than saving your money, it will increase in value over time.
A poor person will celebrate weddings, marriages, clothes, and extra things to show off to others. A middle-class person will also spend here and there on extra things. The more a person is rich, the less he cares about these things. A rich person knows he has to invest in something where it can generate money and gain benefits.
If you spend a lot on your wedding. Why not invest your wedding money in something that will help you make money in the long run?
Invest in a good plot or shop, and you'll be successful. If you invest in a business, it will help you become rich and make your life better.
Hating on the People With Money
Don't hate the people who have money. Instead, admire them. Learn from them. Try to incorporate their good qualities into your own life and achieve your goals as they did.
If you hold negative thoughts in your heart, you will move toward negativity. Think well of those who have earned money and worked hard, and pick up the traits that help them succeed.
These were the points start from one and try to adopt all for your better future.