How Successful People Avoid Money Mistakes

 

I have known many people who knew how to make money, but not so many who knew how to manage it.

Have you ever had that feeling when you have paid the month’s bills and wondered where it all went? Successfully managing our incomes can be something we need to rethink. Most of us tend to settle into careers and gradually increase our income.

We pay our bills, and save a little for splurges. Beyond that, really understanding what we are doing and projecting for the future often becomes more vague.

Lifehack gives us a few clues to make it easier. They suggest taking the time to learn the basic principles and following through can be invaluable as the years roll ahead.

They advise not overspending and living on less saying 10 to 15 percent savings can make us financially successful. They also advise us to always be looking for ways to increase our income, to not delegate financial decisions to others, to learn to understand financial decisions, and to not let money make every decision.

They warn against taking foolish risks in money. Warren Buffet advises never losing money. I would strong agree with that. It takes quite awhile to build savings, but hasty decisions can make it disappear almost instantly. In our culture scans are everywhere, and real opportunities are there, but much rarer. Do the homework before you invest your money.

Along that line, don’t just assume that everything is going well in your financial endeavors. Be willing to set aside some time once a month to review everything and really think about where you are. Also reach out to people who understand money and ask some good questions to get further ahead.

That’s a lot of financial do’s and don’ts. But if you think about it, the amount of money involved, and the power it holds over the future for you and your family might make it well worth some effort.

I have to force myself to review financial statements and goals, preferring just to cover the regular bases. But really the overall game is about how well we steer our way through the big picture. Do we need to spend less time on less important tasks? Are we saving enough? Do we really have a clear picture of what our income is and what that represents in today’s market. And finally, could we do a better job of making our money work for us?

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Used under Creative Commons Licensing courtesy of torbakhopper