What personal finance mistakes should everyone avoid?

[Alexandoy]

Investing in something that you do not know very well is a big risk because any kind of investment has the probability of loss. Putting all your savings in a bad investment can wipe you out. That is one mistake that we are avoiding that is why our money is in the bank until it is not sufficient to buy real estate. For me, the best investment is real estate especially when there is a structure that can be used or can be rented out.

 

[Bkoks]

We all have so much expenses that usually takes large chunk of our income and ensures that nothing is left for savings and investments. This is because we don't know how to differentiate our needs from wants, once we streamline our expenses and start spending only on our needs, we will have enough money for other things.

 

[Kinglegend01]

I think a mistake we should be very careful about is where and how you invest your money online. The platform you invest in and what type of business is the platform talking about. Is it legit? Or is it a scam. You should make proper research about the platform. Getting into Debt and Overleveraging Getting in debt due to bad spending habits such as the uncontrolled use of Atm card.Using Credit Rather than Cash

 

[Segshowee]

For me it will be not Investing Appropriately - If you simply keep your cash in reserve/savings bank account, you are not investing you are doing the opposite. Your saved Money will lose its value and become worthless due to rise in inflation.
It's better you invest your Money into Profitable and low Risk Businesses and keep your money flowing beating inflation and making your money more worthy.

Taking money out of your capital to cater for personal needs. Also, spending a large chunk of your money on liability instead of asset. A grave consequence you would have to contend with if you lack financial discipline.

 

[Milz]

Like you said, saving money in the bank should be one of the worst things to do. You are only given a very small interest rate and your money will be given to big businesses as loan to pay back the bank with interest.

 

[Roysnickz]

For me it will be not Investing Appropriately - If you simply keep your cash in reserve/savings bank account, you are not investing you are doing the opposite. Your saved Money will lose its value and become worthless due to rise in inflation.
It's better you invest your Money into Profitable and low Risk Businesses and keep your money flowing beating inflation and making your money more worthy.

Money is very important because it is needed for almost everything in this world. So, one need financial intelligence to survive. You need to be good in investment and avoid impromptu spending

 

[Dubai]

For me it will be not Investing Appropriately - If you simply keep your cash in reserve/savings bank account, you are not investing you are doing the opposite. Your saved Money will lose its value and become worthless due to rise in inflation.
It's better you invest your Money into Profitable and low Risk Businesses and keep your money flowing beating inflation and making your money more worthy.

It will be inappropriate not to go into rewarding investments. Another mistake one should avoid is not making a budget before venturing into a business. Lastly, everyone should avoid spending more than they can make as profit or salary. It prevents one from going into debt.

 

[Philip Omotayo]

Investing in the wrong business and avoiding excessive spending. Also, one should avoid extravagant loans from commercial banks except it is needed for the improvement of the business. Borrowing money from people is another mistake most people do. And it makes one to be a debtor.

 

[Sotherefore]

The worst financial mistake anyone can ever make is to save money to go and buy a car or to save money to go and lodge in a hotel, this is one of the worst mistake that can happen because the money you are using to buy a car will not generate anything tangible to you to improve your financial status.

 

[Gilead]

The management of money will be my number one. I believe if you can manage your finances well then you have avoided the biggest mistake you could ever make financially. Spending accordingly will serve you right.

 

[Onachukwu]

Excessive/Frivolous Spending​

Great fortunes are often lost one dollar at a time. It may not seem like a big deal when you pick up that double-mocha cappuccino, stop for a pack of cigarettes, have dinner out or order that pay-per-view movie, but every little item adds up. Just $25 per week spent on dining out costs you $1,300 per year, which could go toward an extra mortgage payment or a number of extra car payments. If you're enduring financial hardship, avoiding this mistake really matters – after all, if you're only a few dollars away from foreclosure or bankruptcy, every dollar will count more than ever.

 

[Blessingedidiong]

Personal financial mistakes that should be avoided. Do not borrow more than you earn. This is a major cause of financial problems. Another mistake is make sure due diligence is done before any investment is made to avoid losing to investments. Do not spend more than you earn. Discipline in spending is key to financial freedom.

 

[Rainlover207]

Personal financial mistakes someone need to avoid is to be very careful where he or she investing their money especially online, that is why I prefer offline business because if you are doing offline business you should be able to monitor it in daily basis.

 

[Kehinde]

Not having a budget at all. There is no way around it... ...
Forgetting about income tax. ...
Not having a category for emergencies. ...
Thinking you can live without fun. ...
Failing to revisit your budget. ...
Overcomplicating your budget process. ...
Failing to negotiate. ...
Focusing too heavily on saving.
Excessive/Frivolous Spending.
Never-Ending Payments.
Living on Borrowed Money.
Buying a New Car.
Spend Too Much on Your House.
Use Home Equity Like a Bank.
Living Paycheck to Paycheck.
Not Investing.

 

[Greatguy1]

I think one of the financial mistake 1 have to do is investing in unscrupulous investment that has no legal backing if you invest in such
scheme that promise you almost 900% return on investment initial period of time and believe me you have many financial mistake.

The lure of huge gains would normally be cloud our judgement. high yield investment programs are just programmed to crash as soon as the few who have gained from it bring in a large populous so that the runners of the scam would easily cash out.

 

[Caali]

Avoiding the most common financial mistakes people make, which is easy to do, will change your financial future dramatically.If there’s one thing I’ve learned in life, it’s that we should not follow what most people do.

 

[tyrim88]

One financial mistake one shoul avoid as an individual is to recklesly invest money in a venture that has no faesible source of generating income for would be investor.
As a firm,the mistake would be to invest too much money on fixed assets that has little or nothing to contribute to the business at that growing stage.

 

[Sheun450]

1. Getting into Debt and Overleveraging Getting in debt due to bad spending habits such as the uncontrolled use of credit cards can quickly lead you to a downward spiral. · 2. Keeping Up with the Joneses · 3. Lifestyle Inflation

 

[Diamond07]

- spending too much, you must only spend on the things that matter
- investing, try as much as possible to save your funds or invest it so you put your money to work.
- save for your retirement

 

[Niftyyem]

In addition to those mentioned, one financial mistake I try to avoid is Lending out important funds to friends or families. It most times backfire and one may end up in serious trouble if they don't pay back.