Stop Losing Money: 10 Common Money Management Mistakes You Need to Fix Now

Photo Credited to Victor Ballestero on Unsplash 

Most people which involve college students and young adults make common money mistakes that are costing them thousands because they fail to manage money skillfully or don't learn common money management mistakes from other people in their lives.

Knowing and avoiding common money mistakes to grow our money is what is important to us because without learning them from other people, we will still do the same as them for the rest of our lives.

Therefore, here is what we want to share with you our life experience from other people including ourselves who make common money management mistakes that ruin their financial future. And in this blog post, you will learn these outlines:

1. What Is Financial Pitfalls Meaning? 
2. 10 Common Financial Mistakes You Need to Fix For Better Financial Management Now

1. What Is Financial Pitfalls Meaning?

Financial Pitfalls means lacking of financial control or lacking of financial responsibility or wrong spendings. It shows that we fail to control our balance when it comes to money in our hand. 

We fail to control our money from lusting the eyes of things. We spend anyhow, not thinking about our future security. 

We fail to set our financial goals to build wealth. We want indulgence or gratification NOW, forgetting our financial future. That is where we fall into financial pitfalls. It means we fall into our debts or financial bondage. 

There are many different ways we fall into financial pitfalls in our lives. We do not know where our money has gone because we fail to track where our money has gone and come. It involves business, investment, home family and personal home. 

People are financially broke or drained or poor because of common money management mistakes they make. They pay a price for their money mistakes. They suffer or bear the consequences of their actions even for money.

We are just ignorant of money we are spending daily in our lives and investing that causes us to lose thousands daily. But learning our money management will prevent us from financial pitfalls. 

That is called financial discipline. Having discipline with money will help us to stop money mistakes from draining our wallets and also help save more money to build wealth in our future. Isn't it right? Good! Ignorance about money can cause people’s money management mistakes. And we should avoid our ignorance about money. 

2. 10 Common Financial Mistakes You Need To Fix For Better Financial Management Now

1. Spendings: Most of us like to spend on things anyhow because we want to enjoy it NOW. We spend to impress people that we are rich. We hate the embarrassment that we are poor. We want to flaunt that we are rich because we want to be praised. 

That's where we fall into poverty. We do not know what to do when we find that all we have in our savings account has gone, leaving us financially drained. We forget or neglect to put money aside daily for the future. We are called spendthrifts or high rollers. Most of us live in debt or are broke each time we earn because we are big spenders. 

How to Fix: Only spend money wisely. Only have a budget on spendings. It will save you more money for better money management. Just spend what you can. Just save what you can. Just invest what you can.

2. Hoarding: Many individuals desperately part with their money towards a house, a car or anything else on their low income and always save money towards their long-term goals which result in their health or not in paying enough attention to the more immediate financial concerns. They are hoarders. They refuse to spend money to make them rich. 

How to Fix: Never hoard money for future purchase or your dream purchase because inflation can eat up your savings. Learn to save and invest towards your dream purchase or future purchase. Money saved and invested is important to live a comfortable life. Learn to spend to make yourself rich in everything quickly. 

3. Binge: Those who enjoy happy meals, parties or luxuries with their money are called bingers. They overeat and they indulge immoderately. They are the same as a prodigal son. They wipe everything out in a big splurge. For example, a young man saves their money for future school, but then takes the savings to blow all the money on a high school graduation party. We called them bingers. They are careless with money as if nothing happens to them.

How to Fix: Delaying financial gratification is the key to financial freedom. Never save to consume everything because it is just a seed. Learn to save to invest automatically that keeps you enjoyable in everything for life because they pay you income daily for life after you feed water on it for many years. Patience is the price for success and luxury. 

4. Loafing: Most people including college students in Australia, USA, South Africa, etc just sit or sleep idly, without taking it seriously when it comes to money. They avoid or procrastinate paying bills on time, saving for the future, keeping track of where their money is being spent, and putting financial matters. They avoid financial responsibility because they think it does not matter to them. How wrong they are! They are loafers because they do not take control of money in their hands. 

How to Fix: Your life is in your hands. You have power to make you rich or poor according to your financial management when it comes to money. You have to learn to take it seriously when it comes to money because money is like wings and they come to your house and go if you don't watch it carefully. You must check your bills quickly and plan it quickly. Benjamin Franklin said, Beware of little expenses because it can sink into a ship 

5: Worry: Many individuals in this world, even ourselves today, fret about money, whether they have or not. They fret about tomorrow. They think more about money than life. They forget how important life is. They worry about money too much. That is where it affects their health. 

They thought that money never comes if they give to make them rich. Your mental capacity or brainpower is much more than money. Why worry about money? Rich men have no peace of mind when it comes to abundant money because they do not want to be killed because of it.  

Both rich men and poor men are afraid of tomorrow because they believe in money and money is their idol. They concentrate on money/success more than their health and their families. That is why many individuals and their families face unnecessary stress. Money is constantly a concern and usually causes unnecessary stress on these individuals and their families. They are worriers because they believe in money and money is their masters. 

How to Fix: Learn to put money in your head, not in your heart. Stop fretting about money as if you are afraid to lose money and you want to play it safely or feel secure. Learn to use your mind and human emotions to build wealth over time. Two emotions you should master when it comes to money are Fear and Greed. You should use it in your favor, not against yourself. 

6. Money Monkishness: Some religious or pious people are too holy to touch money even when they know biblical verses on money in the Bible. They want to be poor. They view money as dirt or corruption because they see it from other people who are of worldly pleasure or they read these words: You can not serve God and Mammon; Abraham and a rich man in hell, etc. 

That is what scares them from touching wealth and prosperity. They think money itself is dirty, that money causes people to be corrupted, and they don't want “too much of it”. And those who do not want to touch money are called money monks. They are too religious, too pious and too holy to touch gold. That is why most christians remain poor for the rest of life.

How to Fix: Money answers all things. Never be too pious to learn about money matters that lead you to financial success and financial abundance. Think of money as your friend. Treat it as your friend. Welcome it as your friend. Don't call it dirty or evil because you see it in or hear it from other wicked pleasurable people. Money is important because it can take care of your needs if you use it as your servant. 

7. Money Amassing: Many people especially youths and young adults want to have money at all times to enjoy themselves daily, to feel secure, invest in and to impress others. It means they want quick cash daily without sweat. That is where they lose thousands because of their greed or covet. They don't want long work or endure for many years to have money. They hate suffering. 

They want NOW. That is why they still type: how to become rich overnight; how to become a millionaire without work; how to earn money daily, etc in the Google search box. They collect more money daily for their little investment. I call them money amassers and they still hunt for quick rich schemes that are costing them big or ruin their financial stability. 

How to Fix: Never amass money because it can hurt you. Learn to be content with what you have and how much you make money. 

8. Multiple Credit Cards: Credit Card companies are so smart. They give away free gifts to college students or other young adults on credit cards, with the aim of snaring if they register with them to get it for free. 

That is why many people in the United States and the United Kingdom get into financial trouble with their credit card companies because of its daily monthly high interest rates that can stop them from getting a job, buying a house, purchasing a car, or borrowing money from other financial institutions. 

Credit card holders face credit card debt that can stop them from every opportunity if they delay paying for the next seven years. They use credit cards to buy non-essential things. They use credit cards too much. That is where it affects their financial management because they fail to watch their credit cards carefully. Ignorance is their problem. Greed, impatience, ignorance, self-indulgence and lack of self-discipline get them into bad credit on purchase. 

How to Fix: Learn to discipline yourself with credit cards. Ask for advice on a credit card before you use it. Keep only one credit card at a time. Don't multiply credit cards. Pay your bills on time. Don't exceed your credit limits. Be careful with your spendings. Control it well. 

9. Overly Lending: Many people lend money to some of their friends, relatives, mates as if they think they can help them out, but find they are not able to get it back all from them. They often lend money to people that are wrecking their financial stability because they are not able to get it back all from people even when they threaten them. 

How to Fix: Stop lending money to people who requested it. Don't worry about being wrong or nervous if you refuse to lend them to even your best friend. Better lose a friend than lose money because you can't get it back from him or her. Better part people with your little money you can afford to lose with love than big money unless you are a banker. 

10. Financial Ignorance: it is another financial mistake most people make because they lose big money. And they lose a lot of money because of their ignorance about the stock market and business ventures. 

Some of them are told by their friends that stock can make them rich (after retirement or retail business ventures), and they quickly invest with thousands of dollars or millions of naira, only to find themselves in financial paralysis that nearly ruins them. They fail to pay for knowledge on cryptocurrency, stock market. That is where it affects their financial management. 

How to Fix: To overcome financial Ignorance is to acquire enough knowledge you can use for better financial management.

I hope you find this article helpful? How would you feel if you read this article? How do you experience it? Do you pass through these common money mistakes you made? Leave your comment here in the comment box below and we appreciate it.