"Being in control of your life and having realistic expectations about your day-to-day challenges are the keys to stress management, which is perhaps the most important ingredient to living a happy, healthy and rewarding life."
One of the largest causes of stress globally has been found to be money. Money is the biggest stress factor for many people.
"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."
Why is it that then that we still are not able to manage our finances and what is it that we can do to make things even much better for us?
Below are some of the key money mistakes that we should be aware of:
1. Overspending: The overspending can be brought by a number of issues. However, the largest issue is the lack of or poor budgeting. People who don’t have a budget or track their spending find trouble controlling their money. The best solution to overspending is having a budget, sticking to it and having an accountability framework to keep yourself in check, especially if you are the person who has challenges with money
2. Debt: Debt has been one of the biggest challenges that most of us face in our journey to financial freedom. A lot can been said about the challenges brought by debt but the bottom line is that you need to contain your debts, especially consumer debt. Some of the things that can go wrong include:
- Forgetting to pay your loan installments
- Using your credit card extensively while on holiday
- Taking the holiday financing deals
Here, the solution is to ensure that you pay your installments using standing orders so that you do not forget and avoid having an open ended credit card with you. You can choose to leave it at home or have a shopping list. Also, plan for your vacations in advance. Don’t go on holiday just because there’s a deal.
3. Peer pressure: we often see our friends and relatives enjoying holidays and we end up joining them even if it was not part of our plans. Be comfortable with your own company and live life within your means.
4. Not investing: For us to go far in the wealth creation journey, discipline and consistency is key. We should ensure that even during the hard times we continue putting our money aside and making it work for us.
Get a copy of our book Thrive and Anchor your financial wellness or our free ebook on goal setting here. You could also join our Prosperity Blueprint program and learn how to make your wealth work for you.