THE PROCESS of managing money may prove extremely difficult for some. This process entails dedicated practice and experience, and at times,
common mistakes can be easily made. Fortunately, these mistakes can be rectified. Here are a few contributing factors to poor money management and suggestions on ways to avoid them.
ANALYSING YOUR EXPENSES
It is a common statement; "Where did all my money go?" The fact that you work hard for your salary should provide some incentive for you to keep track of your outgoing expenses.
Try making an outline of your everyday expenditure and list of
priorities at the end of the month, then review ways in which your money could be better handled in the following month. Practise to prioritise the more important expenses. Ensure that you are in line with your standard of living; meaning the one you hope to achieve.
CREDIT MAY BE YOUR DOOM.
Be careful of the way you use credit options. If over-used, you'll certainly be 'digging your grave', as you'd be constantly paying credit debts and putting your financial security at stake. Instead, aim to reduce your use of credit.
Endeavour to take on debts only if you are sure you've set aside your savings, and you have enough to spare. Doing otherwise may prove to be a terrible money management mistake.
RELATIVES, FRIENDS AND MONEY
At times, lending money to your relatives and friends may prove to be more of a gift, than a loan. This may be a negative factor in your money management, therefore, when lending money to your
relatives and friends, check your priority list first, and ensure that you have extra money to spare.
In cases where you are guarantor on loans for others, it is advisable for you to be prepared to pay off that loan. Enter all agreements with both eyes open.
SAVING FOR THE
PRESENT AND FUTURE
Failing to employ regular saving systems may turn out to be a
damaging mistake. Having a safety net on which to fall can never be a bad thing. Consider various investment and saving options to obtain the financial goals you have set out to achieve.
It is never too soon to start planning for your retirement. Relying only on your pension plan is not a wise decision. Seek a good instrument in which to invest. Remember, not all investments are high risk, and you will have a
better chance at gaining better returns, if you invest for the long term. If you manage your money wisely, you will ensure a financially secure future for yourself and your family, even after you retire.
SEEKING FINANCIAL ADVICE
When seeking financial advice on how to manage and invest your money, do your research. It may not be prudent for you to take the advice of a stranger without questioning their credentials.
You may not be entirely know-ledgeable on a particular investment, therefore you should take your time and inform the person that you would like to review the option or proposal closely, before you make a decision.
Do not make the mistake of being rushed into a choice; it's your money at stake. Choose a financial adviser carefully, pre-
ferably from a reputable, stable and successful investment firm.
There are of course other mistakes that can be made when
managing money. After a while, by practising systematic procedures of properly handling your money, the mistakes you make will become infrequent and hopefully disappear.
To further discuss investing and the many options we have available, contact DB&G at info@mydbg.com or toll free at 1-888-CALL DBG.
