Mistakes we need to avoid in managing money

18 replies
Many of us must have experienced problems in managing finances,
including me as well. Whether we get caught up in the use of credit cards or other expenses.

Problems managing money does have a lot of factors, whether factors as management or unforeseen factors.

Well maybe we underestimate the fundamental things that can cause
some errors in financial management as follows:

1. Less Time in Managing Financial
Try to take some time, for example during a weekend
to manage your finances. use this opportunity to pay credit card bills,
note expenditures and revenues in the books.
It is a habit that we need to get used to. Why? If you have further delay this case, you will be more difficult to make a habit of noting your finances.

2. Lazy to take some notes to the finance activity.
Are there any of you who think "is it important to have a financial records?"
We often forget the trivial expenditure spending, such as mobile phone credit to buy, or buy comics or books and others. The things like can make us forget ourselves and ultimately our financial ruin.

But there is a surefire way for you to track your money spending, the "envelope" trick. Try to use 1 envelope just for spending a week. That way you can find out how much money you spend that in a week. From it you can limit your spending as much money contained in the envelope.

3. Debt is good or not?
When you hear the word "debt" definitely a lot of people would have to judge that debt is bad and negative.

Do not misjudge, with a debt we can go back to school, get an apartment and then you rent (the profits can be used to pay the layaway plan), can even provide working capital for us.

Fearing of debt can sometimes make us lose the opportunity. However, too much debt, especially if the debt exceeds our ability to pay the layaway plan instead could lead to chaos in our financial condition. In essence, the debt will not destroy someone's life, if we can use it wisely.

4. Not Thinking More Ways to manage your money
Many ways to manage our financial, insurance, investing in gold, etc.. Investing is important enough to us that when something happens suddenly.

Why? if one day you crash and required hospitalization, for example, then the expense is enormous. With insurance, we do not even need to pay and it will not damage our finances.

Well, are you still making those mistakes?

Cheers,

Irvan Mhd
#avoid #managing #mistakes #money
  • Profile picture of the author figgity
    You sound like Dave Ramsey. LOL.

    These are all excellent things to think about and meditate on, especially for people who aspire to be successful marketers. Usually it's hard for me to keep money management in mind because I'm a "creative" and naturally scatter-brained, but I have help in my spouse (an accountant) who reminds me about these things all the time.
    {{ DiscussionBoard.errors[7416052].message }}
  • Profile picture of the author Jackson Tan
    every single transaction tells a story.. details in financial management can make a big difference to your business.. ROI, Debt ratio may not be marketing terms but they affect your campaign..

    To Your Fun & Freedom
    Jackson
    {{ DiscussionBoard.errors[7416069].message }}
  • Profile picture of the author whland
    I got my first credit card when I was 17. I just sent in the application for the heck of it, because I figured, they wouldn't approve me anyway.

    I stated I had no Job, no income what so ever basically flat out wrote. I'm a broke teenager with no job, no money and living with my parents.

    What da ya know? A credit card came in the mail within 2 weeks with a $2,000.00 limit. And yes I did spend it. Went overboard with it.

    And I'm still in debt to them. It was capital one who I had the credit card with.

    I'm fixing to finally pay it off soon though. It's not a good thing to be in debt. No more credit cards for me though. lol

    Chad
    Signature
    WebMasterBabble.com Webmaster Forum
    {{ DiscussionBoard.errors[7416234].message }}
  • Profile picture of the author rising_sun
    Banned
    Nice sharing ,
    I am try to follow it ,actually I am not well experience but your sharing help me much.
    {{ DiscussionBoard.errors[7417190].message }}
  • Profile picture of the author Kevin Maguire
    Mistakes we need to avoid in managing money

    Irvan, Here's two more good ones you can add to your list.


    [5] Getting Married

    [6] Having Children

    Regards
    Kevin
    {{ DiscussionBoard.errors[7417338].message }}
  • Profile picture of the author Fun to Write
    Money tends to slip through my fingers like water if I'm not carefully budgeting what I need to spend it on.

    I have learned one thing...

    Credit cards suck.

    Debit cards rule.
    Signature

    Focus+Smart Work+Persistence=Success

    {{ DiscussionBoard.errors[7417352].message }}
    • Profile picture of the author Green Moon
      Originally Posted by Fun to Write View Post

      Money tends to slip through my fingers like water if I'm not carefully budgeting what I need to spend it on.

      I have learned one thing...

      Credit cards suck.

      Debit cards rule.
      If properly managed, credit cards can be great - they can give you free float for up to 55 days or so, depending upon the point in the billing cycle when you make your charge. They can also give you cash back or reward points for purchases that you are going to make anyway.

      If not properly managed, credit cards can de a disaster. If they lull you into spending money that you would not otherwise spend, they can blow your budget. If you are not careful about paying on time, the interest and late charges can eat you up.
      {{ DiscussionBoard.errors[7422796].message }}
  • Profile picture of the author CalinDan
    "The man says, "If I had a fortune, I'd take good care of it. But I only have a paycheck and I don't know where it all goes." Wouldn't you love to have him running your company?"
    - Jim Rohn

    Even though I never got the chance to meet him, this man taught me how to take care of my business, clients and of course, my finances.

    Regards,
    Dan
    Signature
    {{ DiscussionBoard.errors[7417387].message }}
    • Profile picture of the author Irvan Mhd
      Originally Posted by rising_sun View Post

      Nice sharing ,
      I am try to follow it ,actually I am not well experience but your sharing help me much.
      Hope you will get new good experience.


      Originally Posted by Kevin Maguire View Post

      Mistakes we need to avoid in managing money

      Irvan, Here's two more good ones you can add to your list.


      [5] Getting Married

      [6] Having Children

      Regards
      Kevin
      Haha.. good points, thanks

      Originally Posted by Fun to Write View Post

      Money tends to slip through my fingers like water if I'm not carefully budgeting what I need to spend it on.

      I have learned one thing...

      Credit cards suck.

      Debit cards rule.
      You've learned 2 things exactly.. lol

      Originally Posted by CalinDan View Post

      "The man says, "If I had a fortune, I'd take good care of it. But I only have a paycheck and I don't know where it all goes." Wouldn't you love to have him running your company?"
      - Jim Rohn

      Even though I never got the chance to meet him, this man taught me how to take care of my business, clients and of course, my finances.

      Regards,
      Dan
      Nice quote, Dan. Hope you will get another chance to meet the man next time. Give my best regards to him..
      {{ DiscussionBoard.errors[7417516].message }}
      • Profile picture of the author CalinDan
        Originally Posted by Irvan Mhd View Post

        Nice quote, Dan. Hope you will get another chance to meet the man next time. Give my best regards to him..
        Unfortunately mate, Jim Rohn passed away in December, 2009. But his legacy lives on, and I owe much to him.

        Regards,
        Dan
        Signature
        {{ DiscussionBoard.errors[7417649].message }}
  • Profile picture of the author sunray
    The most important thing about money is what is the meaning that you give to money. There is one fundamental difference how those who have money and those who have not see it. For poor money is means of instant gratification. When you say five thousand dollars, their mind automatically translates it into a commodity that they would acquire once thay get their hands on the given amount.

    Rich people think very differently. And by rich I mean people with considerable net worth, not those who earn a very good salary and overspend it all. For these people money equals freedom. Freedom of choice that is more important than getting something fast.

    I think this mindset is crucial to being a businessman. Otherwise you drain money out, waste it and your business has to suffer. A business needs flexibility, ability to respond quickly.
    Signature

    Use these laws and make the Law of Attraction work
    QuantumMindSuccess Learn how to live a happy, healthy and abundant life.
    {{ DiscussionBoard.errors[7417452].message }}
  • When I was young boy my grandmother had a money box with about 7 compartments in it. Each was marked up: Rent; Gas; Electricity; Insurance etc.

    When I left home she gave me one of these boxes and I used it all the time.

    Now, of course, I have a pc, a bank account and a home accounting programme but those early lessons are still being applied!
    {{ DiscussionBoard.errors[7417493].message }}
  • Profile picture of the author Azu Ifeachor
    Hey,

    Nice post. Financial education is extremely important and unfortunately not really taught in schools!

    Debt can be good if you use it to leverage a situation and attain an income producing asset. That is, if what you borrow money for pays you back more money than it costs to borrow then this could be good debit.

    An example might be, taking a loan to buy a car to be used as a taxi. If after all expenses you are making a surplus of cash, then the debit is a good one.

    However, if you buy a rubbish car that keeps breaking down and requires more money to fix it, then you will likely have a negative cash flow and be deeper in debt. Hence why keeping track of your finances is so important.
    Signature
    Practical Offline Profit System - How to Make £3k in under 30 days
    OnizuMarketing.com - Looking to get more customers & more sales? We can help!!
    {{ DiscussionBoard.errors[7417821].message }}
  • Profile picture of the author getrichinfo
    hmm, "rich Dad, poor Dad" ?
    Signature

    I'm Buying Health Solos, please PM me if you are selling!

    {{ DiscussionBoard.errors[7417873].message }}
    • Profile picture of the author Irvan Mhd
      Originally Posted by CalinDan View Post

      Unfortunately mate, Jim Rohn passed away in December, 2009. But his legacy lives on, and I owe much to him.

      Regards,
      Dan
      Oh, I'm sorry to know that.

      Originally Posted by Azu Ifeachor View Post

      Hey,

      Nice post. Financial education is extremely important and unfortunately not really taught in schools!
      Hey, nice though! You're absolutely right.

      Originally Posted by getrichinfo View Post

      hmm, "rich Dad, poor Dad" ?
      That's one of the best book I've ever read. Have you read it?
      {{ DiscussionBoard.errors[7419325].message }}
  • Profile picture of the author getrichinfo
    yeah, i read it twice!
    Signature

    I'm Buying Health Solos, please PM me if you are selling!

    {{ DiscussionBoard.errors[7421538].message }}

Trending Topics