New Year, new you? Well, make sure all your efforts are not in vain by not making one of these common money mistakes.
Spending More Than You Earn
A problem may of us have is that there is too much month at the end of the money. That is a function of relying on one source of income. The economy is harsh, yes I know. But when has it ever been easy?
If you think back, to last year, you may have had some bad months. The rent was due and at the same time, you had to pay the kids’ school fees; or some other version of a financial catastrophe. One thing you must realize though, is that, no matter how tough things have been, you’re still here.
You can make it in 2018 and the way to start is to raise bulk money so you can start something that will fetch you a second source of income. Starting this month, resolve to save 10% of your monthly pay and live off the rest. The sky won’t fall, the birds will still sing and you will still be here when the next pay cheque comes. The only difference is, you will have some savings in the bank.
Paying Full Price For Everything
Always, always, always ask for a discount. This is a rule you have to live by in 2018. If you don’t do this, you’re just giving your money away. Also look through your monthly recurring expenses and see where you can shave off 10% here or 5% there. For example, if you live on the Lekki axis and you don’t have an e-tag for the toll, get one. It saves you money and is more convenient. Consider buying somethings second hand. There is absolutely nothing wrong with that.
Not Investing In Your Future
It’s easy to spend another 12 months of your life and not make any tangible progress. The success that some of your friends are enjoying today are because of the hard work they put in years ago.
When was the last time you took a professional exam or learnt a new skill? You can either keep dreaming of being successful one day or you can get off your rear end and do something about it. Legendary comedian Eddie Cantor once said; “It takes 20 years to be an overnight success”. That tells you that the best time to start building for your success is now. Do something in 2018 that will take you closer to achieving your long term goals.
Not Getting A Side Hustle
If you’re ever worked in a company where people have been laid off because of downsizing, you will know that the days when you could assume your job is secure are over. Even if you are performing well, you could still be let go by your employer just because you are the most convenient person to lose.
As someone told me once, “getting another job is easy. Getting a job that pays what you want is the difficult bit”. There may be some more downsizing this year; what am I saying, there has already been at least one bank that laid off staff this year. Don’t be in a position where you don’t have another income to fall back on if your name ends up on the wrong list.
Tipping Too Liberally
Unless you are Omo Baba Olowo with 30 billion in the account or your last name is Dangote or Dantata or whatever, you have no business giving your money away just because someone hails you. You shouldn’t be intimidated or feel pressured to part with your money. After all, you worked hard for your money and if some tout wants a share of it, tell him go get a proper job.
The amounts may be small and even when you add them up, at the end of the year, it’s money you can lose and not be worried about it. It’s more of a mind-set thing and don’t let people get away with calling you stingy. The rich never got rich by giving their money away. If you are going to tip this year, let it be because someone has performed a service or the person has a genuine need for the money.
Living Life Without Insurance
As I have said numerous times on this blog, insurance isn’t necessarily a must have for everything in your life (except when it is a legal requirement of course). However, if you choose not to insure an item, you have to ask yourself a critical question: “Can I afford to replace this item if I lose it?” Asked another way, “What would be the financial impact on me if I had to replace this item?” If you can afford to replace your coffee mug for example in case it gets damaged or stolen, then by all means, carry on without insuring it.
Can you say the same about your smartphone though? How about your laptop, your car, your home and its contents? Can you afford not to insure your health? Finally, what would be the financial impact on your family if you were no longer in the picture this year?
Failing to insure your valuables means that you (or your family) have no safety net and there are only a few things worse that having to raise money from family and friends to pay for something you lost. You need to evaluate your insurance needs in 2018 and have peace of mind.
Enough Talk, Act Now
If you fail to plan, they you are planning to fail. It’s a phrase you’ve heard before and you know it’s true. You need to have a plan for your finances this year if you truly want to move ahead in life and while formulating that plan, you need to have a safety net in case some unforeseen event comes along to derail your plans.
If you need to have a conversation about your insurance needs, drop me a mail and I would be glad to advise.