They say that learning in the field is the best way to learn. This saying cannot be any truer when it comes to managing your finances. We have a funny relationship with money. The endless cycle of spending, earning and then spending again never quite comes to a standstill. Holding onto money is indeed tricky…especially when you make impulsive splurges. So here are 7 things we’ve learned from all the mistakes we’ve made in finance dept (admit it, we’ve all been there)!
Never put all your eggs in one basket
A lesson learned in kindergarten that we just don’t apply as adults. We tend to go all out sometimes, be it spending all of your salary as soon as you get it or investing whatever money you have on a single place. We have all done it and ended up with nothing when it backfired.
Don’t bite on more than you can chew
The human race has never quite excelled at being patient; as a result we have made dodgy investment decisions like taking loans with high interest rates or buying things that don’t fall into our budgets.
Saving is golden
As Warren Buffet said, “Do not save what is left after spending; spend what is left after saving”.We cannot put enough emphasis on this. We always seem to be more present oriented for which we end up not saving as much as we should.
Wants do not triumph needs
Probably the most relatable and common mistake we make. We are all guilty of buying stuff we don’t need. Ever wonder what you’ll do with all the fidget spinners you bought when they run out of style?
Leave a paper trail of your money
We throw away money receipts like they don’t mean anything. We lend out money without keeping any written records. Hence we end up losing track of our expenses.
Never lend money to or from loved ones
Shout out to all the people who are no longer your friends because you had a fallout with them over monetary issues. When dealing in money with friends and loved ones, try to leave your emotions aside; either that or you end up burning a hole in your wallet.
Always plan ahead
If our generation had a superpower, it would be being spontaneous. All those “Follow your Heart” and “You Only Live Once” quotes have led us to spend unwisely so many times. It is ridiculous!