Easy ways to lose money-fast

Easy ways to lose money-fast

You might have heard the cliché 'easy ways to make money', '101 ways to be rich', 'get rich within day's etc., but not often do you hear about losing money and losing it pretty fast.

Losing money is not as difficult as making money all you need do is make one or more of the mistakes below and your hard earned money or inheritance is gone with the wind.

No clear cut idea of investment

Investing one’s money –properly- is one sure way of making more money. However,if you do not have a good investment plan, do not dabble into business or investment. It I better to fix it in the bank as fixed deposit or treasury bills to yield monthly, quarterly or yearly interests until you have ample knowledge and business acumen of what to do with the money. Mr A might have been successful in the importation business does not mean you would.So many investments have crashed due to this and so many will still crash if caution is not applied.

Indiscipline

Some people are so impulsive.They buy absolutely anything they see or hear about not minding if its needed or not. Whether they need the item, product or car or not, the ability to discipline oneself is not just there for them. Ask yourself, if I don’t buy that latest phone, would i not be able to make and receive calls with the phone i have now? Do i really need to buy that dress?Am i buying it because 'that' celebrity is wearing it?Do i need 2-5 cars?Do i need to show off that 'i have arrived?So many sports athletes have gone this way and are regretting it now.They have loads of bills to pay and the money is not just there anymore.

Inability to create a budget and keep records

The major reason   organisations/countries/parastatal create budget is so that they can plan and limit  their actions and spending within their resources/revenue. Failure to do this is a sure way of losing money and tracking what you have done with it becomes difficult.One needs to have a budget and adhere strictly to it no matter what.Your spending must come in order of importance and  necessity.

Trust

Trusting someone to help control one’s finances is not totally a bad idea but as a prudent spender not wanting to lose money, trust your financial adviser you are entrusting your money to but leave room for doubt somewhere inside you. Always double check with another financial adviser whatever your bank or business partner tells you on investments.It does not cost much to do that.

Inability to make firm decisions

Family members would besiege you, friends would bring their financial problems for you to solve but there must be a limit to what you can do for them.do not make it your duty to solve all their problems. The moment you become broke, they are usually the first to desert you.It is usually difficult to stamp your feet when it comes to certain people in your life,but it is something you must do.When the chips are down,you would be left to carry your cross-alone.