Biggest money mistakes you can make

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Business coaching Brisbane

There’s a great article in the Sydney Morning Herald headed “The Five Biggest Money Mistakes”.  It is worth reading.

http://www.smh.com.au/money/planning/the-five-biggest-money-mistakes-20120128-1qmxr.html

But wait there’s more …

Here are five (5) more

Be aware that this is by no means an exhaustive list.  I could go on, … and on!

1. Not seeking or heeding professional advice

Listening to hot tips and gratuitous advice from untrained people can be a dangerous pastime when it comes to your finances.  Family and friends can be well meaning but unless they are trained, the advice can be wrong.  A hot share tip is like a hot racing tip.  It is speculative and super risky.  Remember that not all who purport to be friends have your best financial interest at heart.

2. Living beyond your means

If you don’t have the money you shouldn’t incur the expense.  Reliance on a credit card to finance a shortfall is stupidity.  A credit card is not your money.  It is high interest personal debt you can’t afford.  That is the worst debt of all.  If you couldn’t afford the original amount, you are not going to be able to afford the debt plus high interest

3. No emergency money

When you live from week to week there is no margin for error and no room for something going wrong.  An emergency may be as simple as the fridge or car breaking down.  If you have to turn to a credit card to fund the repair or replacement, imagine what you would do if you were without income because you couldn’t work for a few weeks or a few months.

4. Misuse of dual salaries

It used to be case that the second income into the household was committed straight to savings.  Many people now foolishly commit all of their money to a lifestyle based on the notion dual incomes lasting forever.  Use the second salary for something that will enhance your finances, not simply enhance your retail therapy opportunities.

5. Believing that employment income is all there is

Income is king and earning power is unlimited.  Most people are content to get a job and then leave their financial future in the hands of their boss.  That is financial laziness.  You shouldn’t be reliant on bonuses and wage rises.  There are many ways to earn additional income and anyone can do it.

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