Friday, 26 May 2017


money in different currencies

Being an adult has its own challenges. It isn’t always fun. Sometimes it’s just downright difficult.  Successfully managing your own money can be a little difficult, especially if you aren’t armed with the right financial training.

HANDLING MONEY is a learning process, and you’re bound to receive a few hard knocks along the way. But, there are a few things you should definitely NOT DO when money is involved, in order to set yourself up for a successful financial future.

Here are 15 NOT-TO-DOs when handling money.

1.    Don’t ever spend any money you haven't received. Don't promise someone money based on a premise that you are expecting money from someone else.

2.    Don’t ever borrow money from a financial institution with the intent to start a business; only borrow to grow an existing business. This is because new start-ups take a long time to gain ground and start making a profit.

3.    Don't ever spend earned money on your needs before saving some. If you ever want to save, whenever you receive money do ensure you don't start spending before taking out the savings hoping that you'll save what is left.

4.     Don’t ever append your signature to stand as a guarantor to someone on a financial matter unless you are willing and capable of paying the money if things go south.

5.    Don’t ever keep your seed instead of planting it. Many people stop at saving. It's very, very difficult to save and have all you need to maintain your lifestyle, especially after retirement. When you save, your savings are seed; plant it.

6.    Don’t ever ask a very wealthy person for money, when you get an opportunity to meet one. Ask for ideas on how to make money. They might even decide to give you money on their own if they see that your ideas are great, but don’t let the idea of getting money from them ever be your objective.

7.   Avoid paying more for less. Don’t pay an amount that's not the minimum you can get for the same value. It is a wrong financial application to pay 50k for a shoe you can easily get for 20k from another shop simply because the first shop has a ‘big’ name.

8.    Don’t keep within easy reach any amount of money you don't intend to spend in the short term. Don't move around with 20k in your pocket when all you plan to spend that day is within 5k range.

9.    Don’t ever lend someone money you can’t afford to lose. By the time you lend any money, be sure in your heart that if the person did not pay back, you will not be in financial difficulty.

10.   Avoid spending money on unimportant items. Spending money on items that you can live without is creating unnecessary holes in your pocket.

11.    Don’t ever spend money based on short-term only or long-term only. Always play both ways. Spend on short-term needs that are necessary and also invest for the long-term.

12.   Avoid keeping money in odd places; for instance, inside socks, under the pillow, inside a pit, in the sitting room, in a travel bag etc., unless you planned to retrieve it in a few moments.

13.    Don’t ever spend all or more than you earn. Constantly spending all or more than you earn is like having a pipeline where the inlet is smaller than the outlet. The inlet will be under perpetual pressure. If you do it the other way round and the inlet is bigger, it will get full and even overflow.

14.     Avoid saying yes to every financial demand. If you find it so hard to say No sometimes to each financial demand, you may think you are being generous, but in actual sense, it is financial suicide.

15.    Don't ever think that money is everything. Money is not and will never be everything. Money isn’t synonymous with happiness. Some of the wealthiest people in the world are actually some of the most miserable.  Don’t confuse “success” with “money”.  Do you have time to do the things that make you happy? Things like hobbies, family, friends, religious obligations etc. deserve your time and attention too.

Those are the 15 NOT-TO-DOs when handling money. They are not the only factors to avoid but will make a good start for anyone who sincerely wishes to improve their financial habits. Certainly, it might not be easy to apply all of the above points at the same time, especially if you have gone very far on the wrong lane.

For the young folks, it is much easier to start early in life. Nevertheless, for our much older uncles and aunties who might have got it wrong so far, it is never too late. Simply break down the 15 points discussed and monitor your improvement intermittently as you practice them. Before long, you will be in total control of your finances and become a master in handling money.

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