5 Money Mistakes Keeping You Broke—And How to Fix Them

1. Zero Money Management Skills 

You’d be surprised at how many people go about their daily lives without understanding where their money goes. 

Just throwing your earnings into a single bank account and hoping for the best isn’t going to cut it. 

You have to keep a tab on your expenses, monitor your savings, and set aside a certain percentage of your income for future investments.

Remember, the key isn’t necessarily to earn more (although that’s always great) but to manage what you have effectively.

2. No Delayed Gratification

We live in a world of instant results. And while that’s fantastic in many ways, it’s detrimental when applied to our financial habits. 

For instance, acquiring fast, bad debt because you wanted something immediately can lead to long-term financial strain.

Delayed gratification might seem old-fashioned, but it’s the foundation for sound financial decisions. 

Saving up for what you want or prioritising needs over wants allows you to evaluate and make smarter purchasing choices.

3. The ‘Avo Toast’ Lifestyle

Ramit Sethi, the brain behind “I Will Teach You To Be Rich,” talks about this concept extensively. 

His approach to “living your rich life” means spending money on what adds value to your life and mercilessly cutting out anything that doesn’t.

But remember that you need to get your basic costs and essentials in order before deciding what your “rich life” entails.

Focus on spending on what genuinely brings you joy and value. 

Re-evaluate lifestyle choices that don’t align with your financial goals and be ready to make the necessary adjustments.

4. The Social Media Effect or Keeping Up With The Joneses

Comparing yourself to others, especially in the age of social media, can be emotionally and financially draining. 

When you constantly aim to replicate someone else’s lifestyle, you lose sight of your own goals.

So, differentiate between genuine desires and societal pressures. 

Focus on what matters to you, not what appears to be the norm or what might impress others.

5.Neglecting Your Future Self

A prevalent mindset, especially among the younger generation, is living for today without much thought for the future. 

While enjoying the present is great, not planning for the future can have dire consequences.

Start investing early, even if it’s a small amount. It’s not about finding one-off successful investments but about consistent returns over time. 

Compound interest is a powerful tool; the earlier you begin, the better off you’ll be.

Final Words

Life, with all its challenges, is complex. Whether it’s navigating personal relationships, societal pressures, or financial hurdles, understanding these complexities is critical. 

Start thinking about your financial future today, even if you’re just out of school. 

The steps you take today can determine your financial freedom tomorrow. Take note that it’s not just about managing money; it’s about managing your future.