Dear Entrepreneur, Here Are 10 Money Mistake You Should Avoid

Life is full of financial pitfalls. Even with the best of intentions, it’s easy to make financial mistakes. But it’s not just about the mistakes you’re making, it’s the opportunities you could be missing.

There’s nothing wrong with making a mistake, even when it comes to your finances. However, it becomes a problem if you keep making the same missteps over and over again. Learning from these common money mistakes can prevent headaches and position you for a solid financial future

People of all ages can find themselves in a lot of debt, but young people may be especially susceptible due to a lack of financial education and experience.

1. Never borrow money that accrues interest to start a business

That is to say, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.

You may be tempted to finance your expansion projects from your cash flow. But paying for investments with your own money can put undue financial pressure on your growing business

2. Never spend money you haven’t received

The decision to get yourself out of debt is a life changer if you are willing to make the necessary commitment that goes with that. Don’t even promise someone money based on a promise you have from someone else.

3. If you want to save, whenever you receive money, don’t start spending hoping that you’ll save what remains

Your financial future depends on what is going on right now. When you do not have a financial plan, you will not move forward to reach your financial goals. Your financial plan can help you make sure your spending matches your priorities.

4. When you get an opportunity to meet a very wealthy person, never ask for money

When you get an opportunity, it is good to ask for ideas on how to make money. They may 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.

5. Keeping your seed instead of planting it

Many people stop at saving. It’s 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. Not putting your money to work is a huge financial mistake. The best way to meet long-term financial goals is with a smart investment strategy

6. Never lend someone money you are not willing to lose

Lending money to friends, especially when you’re already having to live modestly, is a real no-go. By the time you lend someone money, be content in your heart that should the person fail to pay, you will not die. You should not even lose that person’s friendship if they fail to repay the money you lent them.

7. Avoid keeping the money you don’t intend to use in the short term within easy reach

For instance, don’t walk with 1000 shillings in your pocket when all you plan to do in a day costs 200 shillings. There are always expenses available to gobble any money that is within reach.

8. Avoid keeping money in inappropriate places

Avoid keeping your money in socks, under the pillow, in a pit, in the sitting room, in the bra, or in a travel bag that you will place somewhere in a bu.

Having money and having an emergency fund is important, especially in uncertain times. But stashing away too much cash might not be the best personal finance strategy, either.

9. Spending money on an item that you can do without

If you don’t know where the money goes, you could be spending more than you earn. Everyone, regardless of income, needs a budget. And if you have a major expense in your future then it’s even more important to put together a written plan and then check yourself against it.

10. Making Financial Choices Out of Fear or Pressure

When you are afraid, you may not be considering all of the options, and you may end up making a costly mistake. It is important to take a step back and consider all of your options. You may also want to talk the decision over with someone you trust.

Read More: 10 Most Important Lessons Should Learn In Your Twenties