Having the financial freedom to do what we want is a dream for many people. If you desire to become a millionaire, anything is possible with hard work and sometimes a little luck. But there are some financial mistakes you need to avoid.
Many people look for the easy way out and don’t understand that setting realistic goals and having determination is just as important. Common financial mistakes should be avoided because they can quickly derail your drive for success and cause you to end up in a huge hole you can not dig yourself out of.
Mike Finley is a self-made millionaire and author of a book titled, “Financial Happine$$” to help others to avoid costly, financial mistakes. Finley also teaches a popular financial literacy class held at the University of Northern Iowa.
Finley was quoted, “You don’t have to be extraordinary in any of the headline-grabbing ways; what you need is the self-awareness to avoid wasting money on short-term, retail-priced happiness.” Here are Finley’s Top 10 financial mistakes to avoid:
1) Work a job you hate, and spend your free time buying happiness.
– It’s more important to find a fulfilling job during the week so you are not over compensating by some expensive, spending habits during the weekend.
2) Make the appearance of wealth one of your top priorities by acquiring more stuff.
– Avoid the temptation to to buy materialistic items so you can pretend to live a luxury life. These are not good investments, either financially or in long-term happiness.
3) Play the lottery as often as possible. While you’re at it, hit the casino!
– It’s an easy mistake to hope you strike it rich. It’s a very dangerous way to seek financial security.
4) When you come into some free money, spend it. You deserve it.
– That poor thinking says that a future version of you does not deserve that money. Take that money and wisely multiply with sound investments.
5) Live paycheck to paycheck and don’t worry about saving money. Live for today, that’s all that matters.
– How has that worked out for you so far? It’s important to plan for tomorrow and appreciate life and what you have today. Avoid unnecessary expenditures.
6) Run up your credit cards and make the minimum payments whenever possible.
– A common mistake many people do is pay extremely high interest rates on stuff you really don’t need just to live a glamorous life. It’s a sad waste of money.
7) Stop your education when someone hands you a diploma; never read a book on personal finance.
– Stay educated and keep up on financial news. a diplomas shouldn’t be the end of learning. Make it a goal to acquire wisdom. The time invested will reward you down the road.
8) Blame others for your problems in life. Repeat after me: I am a victim.
– Too many people point fingers and don’t take responsibility for their own actions. The victim mentality leads to poor habits and bad decision-making.
9) Treat those “amazing” celebrities and “successful” athletes as role models. Try to be just like them whenever possible.
– Many celebrities do live a model life and should be a role model. But many lead by a poor example. Don’t dilute your unique individuality by chasing a luxury lifestyle image. Be yourself!
10) Buy the biggest wedding and the biggest ring so everyone can see just how fabulous you really are.
– A wedding is a special day in our lives but do you really need to go into deep debt at a beginning of a wonderful marriage together? Don’t blow your entire savings on one evening.
We hope you enjoyed reading these financial mistakes to avoid. If just one person gets the message and changes his/her habits, then it was a success.
If you are struggling and ready to work with a financial advisor to help get you back on track, please contact The Life of Luxury and we can recommend a licensed professional to assist you today. Follow other financial news and tips like the above financial mistakes, by visiting this luxury blog.
