The average human being is prone to making money mistakes. According to a recent study by Finder.com, 126.5 million Americans admit to making a significant money mistake in their lifetime, with 52% of men owning up to money malfeasance compared to 48% of women. Another survey from DepositAccounts.com states the problem is worse, with “a whopping 85% of Americans admitting to making financial mistakes over the last decade”.
Annual incomes are also a big factor when assessing personal financial mistakes. This is from the Finder.com study: “People in lower-income brackets are far more likely to admit to making a money mistake than those in the top two income ranges,” the study noted. “For example, a whopping 37.5% of people earning up to $25,000 a year admit to making a mistake with their finances, while just 1.8% of Americans earning $300,000 or more who make these mistakes admit the same.
Similarly, 44.7% of Americans earning $25,000 to $50,000 a year admit to making a money mistake, compared with 8.2% of Americans earning $150,000 to $300,000.” Millennials are most likely to admit to making a money mistake (33.9%), followed by boomers (30.3%) and Gen X (25.7%), the Finder.com report said. From the above statistics, most people commit several money mistakes all throughout their lives. Though the statistics above refer to Americans, the case is no different from other parts of the world. In Africa, it is even worse as majority of her people have low levels of financial education. Money can be a powerful tool!
Why publish this book at such a time? Well, money is everyone’s business. We all handle money and we all like it. Money is a powerful tool that can be used to transform a person’s life in every way. Money can make your family better. Money can make you enjoy your health. Money can even change the way you serve God. Money can make you eat better and live better.
Why do we spend time and energy on this book? The reason is simple: Money mistakes can be costly. We have all made some serious money mistakes in the past. Some of those mistakes have cost us a lot. Having been through the fire, we thought it necessary to put these lessons into a book like this so other can read and learn from these mistakes. Money mistakes are more! We acknowledge the fact that there are many more of such money mistakes but in this book, we have decided to examine only twenty-one of such. By our perspective, we believe these are the most common money mistakes that everyone who seeks to achieve financial independence must avoid.
Because most people are even ignorant of these mistakes, The Top 21 Money Mistakes Everyone Must Avoid in Life seeks to sensitize readers on these mistakes and how to avoid them. The Effects of Money Mistakes can be Disastrous. As you can see from the above, money can help us accomplish a lot of great things in this life, but its abuse can lead to a miserable life. Of all mistakes in life, money mistakes can be one of the most common ones that leaves its effects for a long time. Indeed, money mistakes affects all other aspects of our lives.
Wrong decisions on money can affect one’s family, reputation, business, career and even a person’s faith. The effects of money mistakes can be disastrous. Money mistakes can really be costly, and we do not desire people to ignorantly commit these mistakes. We trust that this book will empower the average person on a continuous journey of financial success. That is why we wrote this book!
Enjoy the read.
Money Mistake #1 Being ignorant on money matters
A wise man will hear and increase learning, And a man of understanding will attain wise counsel, ~Proverbs 1: 5 NJV
It is incredibly sad that majority of the people who desire to become financially free simply have no knowledge of what money is and how it works. It is difficult to master something you do not understand, and that explains why a lot of people are slaves to money.
However, it is important to state that the first key to mastering money is to know money! What then does it mean to know money? To know money simply means to understand what money is and how it works. A wrong concept of money has led many people to commit certain unpardonable mistakes with money. You cannot control money until you know how it works! Most people spend their time reading the latest news on entertainment and every other happening except on things regarding money. If you are not reading books on how to make and manage money, you will end up working as a slave for money.
Financial freedom is available to those who learn about it and work for it. ~Robert Kiyosaki
To become financially independent, you need to understand how money works. For instance, as a principle, it is never enough to save money. To create more value from money, it must be invested to increase its time value. The mistakes many people make are that, they remain ignorant of what money is and how it works, and that explains why they struggle to become financially free.
…to be continued.