Unfortunately, making mistakes can limit your ability to make money. Even worse, you are making these errors right now and don’t realise. Everyone makes mistakes when it comes to their finances, and, for the most part, it isn’t a big deal. However, there are some you can’t afford to make because they are almost irreparable. If you want to maximise your earning potential, it’s time to take stock of your finances. So, are you making any of these mistakes?
Going It Alone
Start with this one because it is the most common. For whatever reason, people tend to distance themselves from those that can help their finances. It is a pretty stupid move, and it’s one that easy to rectify. All you have to do is contact a business like Partridge Muir & Warren and ask for their advice. With their years of experience, they will be able to put you on the correct path. Or, ask someone close to you who is trustworthy. Anyone that has been through or has expertise in the field is a useful tool and a person to lean on when you need advice.
Now, most people won’t overspend by a big amount. Of course, you can’t because you wouldn’t be able to survive. What you will do is overspend by an amount that most deem as insignificant, and it’s a fatal error. Regardless of how ‘little’ the sum, it is money that could bolster the coffers, especially if money is running low. The people that make the most money don’t deal with huge sums – they concentrate on the small ones, too. You need to do the same, and you can start by reigning in your spending. Even if it’s only a tenner a week, ten multiplied by 52 is a lot of cash.
Not Downsizing Debt
First of all, it’s a good idea to state that having debt isn’t the be all and end all. Some people think that debt is fatal and needs rectifying as soon as possible, and that isn’t the case. Instead, the debt needs managing so that you aren’t wasting valuable cash on fees you could otherwise avoid. By lowering the debts which cost the most, there is no reason to spend a fortune to keep up with the repayments each month. Sometimes, it is better to take the hit in the short-term to set up a brighter future.
Misunderstanding Price Vs Value
Price and value are two different concepts, yet a lot of people merge them together. Price is what you pay for a product; value is the product’s worth. What you should never do is allow the price get in the way of the value. If you are confident a particular investment has a lot of value, it’s a good idea to pull the trigger. Sure, the price will muddy the waters but it is easy to regain clarity. The trick is to think ‘can I afford it?’ and ‘is the ROI more than my initial purchase?’
Don’t let the opportunity slip through your fingers if the answer to both is yes.