7 Deadly Sins that Trap People in Financial ProblemsMay 11, 2021
The 7 deadly money sins you must never commit
Money is a life-changing resource. Unfortunately, not many people understand how to conserve money, or build wealth. Instead of using good judgment to gain value out of money, the majority of people have an instinct to overspend, and stretch the limits of what money can achieve. This mistake is at the root of most financial hardships that people go through. But there’s a way out of this trap.
Money Grows When You Save It
Corporate Executive/Financial Expert Kieran Moulden suggests that, “When you manage your money effectively, you are better able to save for the future. Savings are a key part in money management as they help to create a level of security for the future also. Good money management means looking at the bigger picture, and turning this knowledge into wealth.”
Here are a few common financial mistakes to avoid, if you want to achieve success:
1) You shall not Borrow Money without a Plan to Pay it Back
Debt is the number one reason why people experience financial jeopardy. No matter how big or small the amount you’re borrowing is, always come up with an action-oriented strategy to pay it back.
2) You shall not Spend Money without a Budget
Budgeting creates an opportunity to spend money in a controlled, efficient way. If you don’t take the time to count what you spend, you’ll never know whether you’re sinking or swimming.
3) You shall not Spend Money without Saving it
Saving money is a discipline that can rescue people from poverty. The more money you have saved up, the more you can lean on financial reserves to survive tough times.
4) You shall not worship Designer Products
Most people have a deep desire to live a lavish lifestyle. But trying to live like the rich-and-famous will sink you under if you can’t afford the finer things.
5) You shall not Gamble
Taking unnecessary risks is an automatic way to destroy wealth. If you’re going to take any type of risk with your money, make sure to calculate exactly what you stand to lose. Don’t make uninformed gambling decisions.
6) You shall not be a Cheapskate
Saving money is a good thing. But saving money to the point of becoming a cheapskate is counterproductive. Cheapskates are so obsessed with nickels and dimes that they forget how to count dollars.
7) You shall not live in Denial about money
Lying to yourself about money is a surefire way to end up making negligent decisions. Always be honest about how much money you have, how much money you don’t have, and how much money you owe. Such honesty prevents people from overextending themselves.
Dealing with money can involve a lot of complicated rules, depending on what you’re transacting in. But there’s one universal principle that can keep your finances intact. Discipline. Financial discipline is the key to avoiding debt and poverty. The more discipline you exercise with money, the more value it will create in your life. If you like what you just read from our blog, you’ll love the various informative courses, workshops and events listed on our websites and social media. Whether you’re interested in personal development, or overall improvement of your business, give us a call at 1 (888) 823-7757 to find out how The RISE Academy can help you break past your daily struggles and start soaring in success. For business development coaching by Richard Martinez, call at 626-202-2291 or follow us on Facebook and Instagram.
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