Money Mistakes Ghanaians Do That Kills Their Financial Goals
We all make mistakes in life, yes because no man is perfect, but Mistakes regarding your finances must be swiftly corrected to avoid financial constraints. A lot of people fall victim of money mistakes that has lead to financial brouhaha in their life. Experience they say, is the best teacher but you don’t have to fail in your finances before you learn, that’s why I thought it right to enlighten you on money mistakes you do that retards your financial growth. Do you have your finances failing you even as hard working as you are? Check the rate of your spending. Or perhaps always have your expenditure greater than your income? Check well, you might be living above your means. Not being able to achieve your goals? May be you didn’t prioritize them if you did, then you did not plan your finances well! You see, whatever results you get depends on the input you make. Lack of proper financial planning is never friendly to financial success. A lot of people today are suffering financially because of a mistake made regarding their finances. Money mistakes are those financial actions and inactions that leads to infertile finances or ill-financial future.
Common Money Mistakes Ghanaians Do That Should Be Avoided
1. Lack of financial planning
Lack of financial planning is one of the major money mistakes most Ghanaians do. If you fail to plan your finances, you are heading towards a crush. Financial planning such as budgeting, setting financial goals and achievement, savings and investment are the backbone of your financial success.
2. Your expenditure is more than your income
If your spending is more than your income, it means you live beyond your means. You would have to depend on credit cards, loans and borrowing to cover your expenses. There should be measures such as budgeting to control and track your spending. Your income should exceed your expenses, avoid spending blindly without tracking, know what’s important and what’s not by prioritizing your expenses.
3. Failure to save for emergency
The major reason people fail financially is inability to save for emergency. Getting an emergency savings fund is the best way to meet unforseen circumstances head-on. Circumstances such as job loss and sickness do come unannounced and with an emergency savings fund, you can cover your expenses without any difficulty. Start an emergency savings fund to secure your financial future!
4. Delaying debt payment
Loans and credit cards should be paid early before the due payment period, this prevents incurring extra late payment fees. Delaying the payment of debt is harmful to your financial capabilities such as credit score and you could possibly remain in recurring debt if effective payment measures are not taken.
5. No insurance/ Lack of proper insurance
Most Ghanaians fail to insure their life and properties or fail to choose proper insurance company. Life and property insurance is very important to each and every individual as it harnesses your life when the unfortunate happens. However, choosing a good insurance company is another factor. You need to choose a good insurance policy, take your time to review the insurance policies of different insurance companies to ensure that you choose the best insurance for yourself.
6. Failure in prioritizing goals
Prioritizing your financial goals is a good strategy to achieving them. Unfortunately, one of the money mistakes people do is failure to prioritize their financial goals and this makes it difficult to achieve them. You may have so much things to do but your finances can not cover all of them at once, so priority sets in. Choosing the most important goals, get them accomplished before other less relevant ones. You can’t afford to go for dinner whiles your bills are unpaid, or buy a new car whiles your house rent is due or better still, spend money on entertainment whiles you have to enroll your child in college. Know what’s best and more important to you and do that first. Consider prioritizing savings and investment!
7. Extravagant living
Unnecessary money spending can jeopardize the health status of your finances. People engage in impulsive spending with no control. If you live an extravagant life, it’s better you adopt one of the best ways to restrict your spending. Those who spend money impulsively become broke in times of job loss and other emergency situations. Impulsive spenders don’t have a plan for their financial future. What makes you an impulsive spender? You become extravagant when you don’t have a reasonable spending list, no priorities, no savings and no investment.
8. Living paycheck-to-paycheck
Paycheck to paycheck is the inability to pay for living expenses due to the loss of income or inability to make budget for your expenses. Living paycheck to paycheck is another element of money mistakes a lot of people find themselves entangled to. Living solely from your salary is a big doom to your financial future. Almost 80% of salary workers depend only on credit cards to pay bills, cater for the family, go for vacation, buy groceries and so on. No savings and no investment! That’s a great mistake! You need to make savings, make investments for greater returns.