Money is a thing you can easily make mistakes with, though you should not. People make mistakes, and being human, it’s our nature to make mistakes in every field of life, but some mistakes cost you even your life, such as consequential financial mistakes.
These financial mistakes lead you to face severe economic hardships and affect you for the rest of your life. Money is not a thing to waste easily after working hard; instead, you need to play safe with money. Many people make their assets with money, and others might lose it by making big mistakes that they can never overcome.
Earning money is, no doubt, a tricky process but keeping it is harder to some other level. It is necessary to make a wise decision when it comes to money, isn’t it?
Many financial mistakes cost you your everything, so make sure to keep these mistakes in your knowledge. Let’s have a look at the common money mistakes to avoid!
1. Unproductive days
It’s obvious to have unproductive days at work. Whether you are self-employed or working in an organization, everyone faces unproductive days now and then. Such days can be very hard for your business or the organization you are working in and can cost you a job. You might suffer because of these unproductive days, but how can you give up and continue without making any financial mistakes?
Unproductive days can be due to many reasons; they can be personal or professional and even environmental. For a self-employed person, it is all his duty to stay productive and positive all the time. In business, most of the time, it is a consistent struggle that makes you financially strong, and you are sometimes unable to balance between personal and professional life. But what if you really want to overcome these days to get rid of your financial problems?
It can make you emotionally drained and unstable and can have a detrimental effect on you and your business; for that, you should work on your personal life and find a balance between your personal and professional life.
There can be many other reasons like not giving proper time to your work, feeling overwhelmed by your future thoughts, and not working, for now, lack of discipline and motivation.
Though for every problem causing you to have unproductive days, there is a solution, and you need to sit back and relax. Think about your problem, and solve it to get back on track, or you can get professional help to solve your problems and get your business running.
No matter what, give up can never be your solution!
2. Recycled ideas
Running a business is not easy as it seems it is a full-time job that has many underlying risks, and you need to be focused and think out of the box to get a business successful. Businesses need new ideas that are new and uncommon that may work now or in the future, right?
It can be a tough job to think of new and successful full ideas, and people make the mistake of recycling ideas; it may work sometimes, but most of the time, they don’t work out and cause a consequential loss in business.
A recycling idea may work and save a lot of time and money, but to recycle an idea, you need to study the market and your customers, and what if you recycle the wrong idea?
If you don’t learn from the mistake and use it repeatedly, it can destroy your business. You might have to face financial problems. Therefore, recycling ideas is risky as new ideas and needs a lot of thinking, studying, and hard work to successfully implement your recycled ideas and have a stable and profitable business.
Innovations are what every marketer needs!
3. Criticizing flaws
Criticism is not fun to hear, but productive criticism is competent for any job and business. When criticism increases from a certain level, it becomes hard to bear and work well under this negative pressure. It causes different problems on a personal level as well as a professional level.
Where fair and productive criticism can help you save a job and grow or save customers. It even helps increase your product and services unfair. Negative criticism can ruin your business and mental health.
Criticizing mistakes and not learning from them are authentic mistakes and can cost you very high. Criticism on flaws can be from the boss, customers, friends, and family, or sometimes you criticize yourself. It becomes a problem for a job or business and can cause financial obstacles. These problems may end your career or business if not attended to as soon as possible.
Criticism should be handled like professionals, and you need to think about solving the problem instead of negative self-talk. You need to view the situation and try to improve it and try not to repeat the mistake. If you feel like now, you cannot bear criticism and become unfair. You need to take the stand and make it stop or get help.
Those who never handle criticism can never grow!
4. Toxic approval
Everyone wants to be appreciated by others and approved by people you value. Approvals and appreciation are usually beneficial and help you to stay positive. It even encourages you to stay motivated to carry on doing hard work. It is for improving your business, but as everything has two sides- approvals can be toxic and ruin you like criticism.
If you start to ignore your mistakes and problems due to approvals or over approvals which becomes toxic, you begin to live in an illusion. It is very detrimental for your business and can lead to financial problems. To solve this problem, you need to self-evaluate and keep yourself in check and start not to depend on the approvals and appreciations of others. Know your flaws and mistakes to improve them, so you can do your job well and increase your business.
Approvals can become very critical and take the shape of people-pleasing. When you begin to please everyone, you cannot stay happy or work properly and make decisions that are distressed for your personal and professional life to satisfy people. It leads to a financial crisis grow a business and do your job well; you need to learn that you cannot please everyone, and you do not need to destroy your peace or profession to please people.
5. Playing pretend
Playing pretend for children is very fun, but in professional life, it can be deadly. It diverts your mind and attention from the real problems, and you start to live in an illusion that is very distressed for your job and business. Playing pretend and not seeing the authentic picture is a particularly severe issue, and you can have a financial crisis from it.
Who wants to face financial straits by his own mistakes? No one, of course!
Whether it’s a job in any organization or a business, attention-compatible work and devotion to grow are always fruitful. Every job and company has its ups and downs, and problems come in every aspect and need solutions. Isn’t it?
To run a business well or do your job well, you need to have insight, devotion, work hard, and smartly. You need to live in reality and analyses and solve real problems, but if you start to ignore them and begin to think that you are doing great; and you do not need to give attention to your work and create a delusion that everything is fine. It leads to losses and creates more significant problems and can even ruin business totally, and you can go through severe financial obstacles.
6. Short term comfort
Investments can be tricky but not investing wisely for short-term comfort is silly. It is a significant mistake that every other person makes when it comes to using money. Long-term investments to make assets are far more beneficial than spending speedily and utilizes short-term comfort.
Make your mind to get long-term benefits instead of wasting cash on the spot.
For example, the world greatest investor Warren Buffet bought $23million in coca-cola by his Berkshire Hathaway in 1988. Buffet going big on the stock was considered risky, also it wasn’t a typical investment for Hathaway. However, Berkshire more than quadrupled the position to 100 million shares by 1994 and to this day hasn’t sold any. After two stock splits, the share count is now 400 million, as of year-end 2020, the investment was worth $21.5 billion, a return of 1550%, not including dividends.
The special point is now Warren’s monthly dividend is worth more than Coca-Cola CEO James Quincey net income. So that’s why investors are more powerful in the Cashflow Quadrant.
7. Lack of direction
Having no plans and no directions won’t let you get anywhere in your life. How can someone move forward if he has no guidance and no goals? Making a financial plan with a proper direction and then working hard on it leads you to some high points in the financial world.
Take the time to set your plans now before moving forward. It has become a trend to not gain knowledge as to what people say? This lack of direction can never let you step towards a successful financial career.
8. Living in fear
You have to take risks and make decisions to move forward and grow, no matter you are self-employed or working on a post in an organization. If you do not take risks, you will remain where you are or go backwards instead of moving forward. Living in fear is one of the most significant financial mistakes that should be avoided.
So, if you do not take risks and start to fear problems, you and your business will not grow. You will not learn as people learn from their mistakes and get experience. We have discussed more this in “why most the educated people are poor“.
Failure is inferior, and no one wants to fail, while if you fail, you gain experience. Financially, it is necessary to take bold steps to rise and grow. Fear of failure can force you to play it safe, and financially, it can be critical, and your business may not grow as you can’t take risks. You have to believe in innovations without any fear to be financially stable by believing in yourself.
Fear may block you from being successful by limit your chances to scale up your business. It stops you make assets. So, for a successful business, you need to face that fear, and if you need help to face it, do not refrain from it because it will lead you to success.
No risks, no rewards!
9. Respect vs idolization
Respect for good, successful people and some level of idealization is suitable for your business, and it helps you to set goals and work hard to achieve them. But if you idolize something significant at the start, you may set yourself up for disappointment. It is one of the big financial mistakes and can cost you your business.
You may idolize and set a very high goal and may lose motivation. Having respect for successful people is a very good habit as it keeps you motivated as everyone makes mistakes and has flaws. So, idolization is not competent for business.
To avoid idolization, we should accept that everyone successful has had faced many difficulties and has had made many mistakes and is not flawless, and keeps you motivated.
In business, we should also respect our clients and make advances in the market to make them comfortable but making clients idols will put you under high pressure. It makes you forget to be yourself and lose mental peace, which may lead to the downfall of your business. So, it is necessary to have respect and ideals, but we should not make anyone idol.
10. Self-inflicted delays
To run a successful business or to start a new business- you need to be punctual for everything and should do everything and make every decision on its time. When you start to making unnecessary delays, it can ruin your business. And of course, you don’t want to ruin it.
Financial problems can be self-inflicted and might be due to your fears, avoiding risks, bad decisions. It might be due to investing in the wrong business or spending more than your earning, taking unnecessary loans or hiring unqualified staff, etc. avoid self-inflicted problems. All you need to be careful.
Self-inflicted delays or problems can be due to anything you do wrong and try not to correct it. Self-inflicted delays can be due to not paying taxes on time or not keeping track of business. Having too much trust in employees can also cause financial mistakes.
Any problem in business due to your mistake that you do know the consciences and risks is a financial mistake, and for this crisis only you are responsible. You necessitate self-evaluation and follow professional bits of advice from experts to avoid self-inflicted delays.
Those are the 10 financial mistakes that you should never make. Because as we discussed, it will definitely affect your business to collapse. If you want to be financially stable, be sure not to make these mistakes. I know this will read a lot of entrepreneurs so the journey is so hard, you have to make tons of mistakes. It doesn’t matter how many mistakes you made because you learn new things from every mistake.
Just remember “Your last mistake is your best teacher“
However, if you came across something important in this financial fact, do not forget to share and let us know what were the biggest financial mistakes you made.