We all make mistakes. In fact, mistakes are often the path to learn a better way. If you accidentally mix peanut butter and pickles together and take a bite, I guarantee you won’t make that same mistake again!
Just as it’s important to learn from mundane mistakes, it’s essential to understand mistakes you may be making with your money.
Here are six common money mistakes I see our society making again and again. Don’t join the crowd. Either learn from a mistake you’re already making, or avoid making the mistake all together.
Six Common Money Mistakes You Might Be Making
1. Building Up a Pile of Debt
In our day and age, we are taught from childhood how to be consumers. The word “consume” also means to “destroy.” What are we destroying? Well, quite frankly we are destroying our ability to build wealth. We should spend money only on things that are actually important to us – things that bring joy and value to our lives.
When was the last time you reviewed your debt situation? How much consumer debt are you dragging around? How quickly would it take you to pay off the debt? Click here to read a post about eliminating debt once and for all! Your life – and your ability to build wealth – will be forever changed.
Grab my FREE Get Out of Debt ASAP worksheet by signing up at the end of this post.
2. Living on 100% of Your Income
Are you living on 100% of your monthly income? Another way to ask this is: are you living paycheck to paycheck? If you can learn to live on 70%, you’ll be on your way to some real wealth-building! The other 30% has a very specific purpose. You’ll break down the remaining 30% into three categories.
You will invest 10%. You will also give 10% to someone else to invest (a professional). And finally, you’ll use 10% for regular tithing.
3. Doing the Same-Old, Same-Old
Are you doing the same old things you’ve always done? This is a huge money mistake! You need to learn new habits, new information, and new techniques. Our culture is rapidly changing. Just think about the progression of technology in the recent years. Money habits are also changing.
Be willing to learn something new – and then try it out!
4. Trying to Reinvent the Wheel
No, this doesn’t contradict number three. I do want you to try new things and take risks. I want you to learn more about the money market and do something to change your circumstances. But I DON’T want you to reinvent the wheel.
There is plenty of information about being smart with money. Don’t try to pave your own road. Follow in the footsteps – and lean on the wisdom – of those who have gone before you.
Check out my Money Mastery course if you need a place to start.
5. Believing You’ll Never Win
A firm self-confidence is a key factor in building wealth. Attitude is powerful and wealthy people often display a confident one. Not only do you need to have the confidence to go in and ask for loans (whether for business or real estate or otherwise) to start building wealth, but you have to have the confidence to run with your decisions once they’re made.
Of course you need to spend time making the decision carefully, but once it’s made, you confidently commit.
6. Blaming Others for Your Current Position
Accepting personal responsibility is the highest form of human maturity. Think about it – you are where you are largely due to the choices you have made. Of course you can’t control everything that happens to you, but you can control your response.
This means that YOU alone are responsible for changing your financial circumstances! Be willing to give up your excuses. Set a direction for your life and chase it down. Be in control and accept the responsibility for your choices.
If you find yourself making one (or more) of these money mistakes, consider taking a step back and considering your true financial condition. How have you landed where you are today? What needs to change? What kind of financial legacy will you leave?
Mistakes are inevitable. But let’s make sure our mistakes are not keeping us from building lasting wealth for kingdom impact!