There are some minor mistakes and there are some major mistakes, and then there are some mistakes that can cost you millions - if not at once, then eventually!

Wondering what these mistakes are?

Here are the nine mistakes that can cost you millions. 

• Spending Money Before Receiving It
  

One of the biggest mistakes that you make is spending money before even receiving it. This means you borrow money and spend it before you get it. For instance, buying things on credit through a credit card. However, you should not spend money before you have it in your hands. 

Only spend money after you receive it! 

• Spending More Than You Are Capable Of
  

Spending beyond means is another big mistake committed by most people. You tend to spend more than what you can earn. Why buy an iPhone if you can’t afford it while another ordinary smartphone can facilitate you with similar features?

So, you should avoid spending on things that you can’t afford because this way you are bidding against your future. Spending more than you can earn requires you to take loans or borrow money to meet the expenditure. In the future, you will have to stay up late working to pay off this money lent to you by others. 

• Save Money Instead of Investing Money
  

Saving money and depositing it in your bank accounts is only going to harm your wealth in the long term. This is because the value of this money will depreciate with time due to inflation. 

Thus, it is advantageous to invest your money instead of saving it. When you invest your money to buy real assets, their value appreciates over time so you are able to generate more money. 

• Spending Without Thinking
  

Do you think before you spend your money? Do you hold on and ask yourself whether it is absolutely necessary to spend this money? 

If you do, then well and good. If not, then you are making a mistake. 

It is vital to spend money on things that you can’t withhold money from or which are absolutely necessary. Similarly, you should only spend the amount of money that is required, not more than that. For instance, if you can get something in lacs, why spend a crore on it? 

So, you should ponder upon your decision before you take that money out of your pocket. Take your time to think about it. If you want, take 5-7 days to decipher whether you actually need a certain expenditure or not. This practice will save you loads of money.  

• Not Spending on Education or Training

Another common mistake is not spending on education or training yourself. Always remember - your brain is your most valuable asset!

If you don’t spend on training your brain or acquiring skills, you are ultimately going to lose money. On the other hand, if you get educated, acquire a skill, or train yourself to perform a special task, you can double your money. The money that your brain can generate is incomparable to the money generated by any other asset. 

• Trying to Impress Others
  

Quit this habit right away! If you are blindly following your peers or family members trying to impress them then you are fooling yourself and draining out your money. 

For instance, if you are getting a big car or a house because one of your friends did it, then this is a big mistake. Instead of wasting your money, you should invest it in the right place. Stop trying to impress people, it can ruin your life!

• Bragging About Things in Life
  

Avoid bragging about the achievements or financial status of your family, friends, or yourself. This is because bragging will create undue pressure on you to meet certain expectations. Avoid telling people that my brother is earning this much money or I have these many properties etc. This will only create more burdens and liabilities for you. 

 

• Not Building Assets

Another huge mistake is not building assets. Instead of investing in assets, you prefer spending on unimportant things like shopping sprees and events. However, building assets is more beneficial in the long-term since they will generate rentals, cash flow, and passive income for you. 

• Not Understanding the Time Value of Money
  

Understanding the time value of money is very important to manage your finances. The general phenomenon holds that the value of printable currency decreases with time due to inflation. While the value of real assets increases with time due to price appreciation. So, you should convert your money into God’s money or real assets like property, business, gold, or silver. As their value will increase, so will your wealth. 

Consequently, if you want to become rich and generate wealth you need to avoid these 9 mistakes. They may seem to be peculiar but they may cost you millions. 

All the wealthy people that you see around are rich because they have managed and planned their finances well by avoiding such mistakes. 

If they can, why can’t you?