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Personal money aspirations are just that, personal. Your personal situation and preferences do affect your financial decision making and some mistakes you may make that can ruin your money aspirations are
- Not getting more education and learning new job skills. Try to increase your human capital with more education and more job skills. If you put money in your education and training this will have a positive rate of return in terms of the income you will earn over your lifetime.
- Not getting the correct information when making choices about what to buy. Try to get informed about what you buy; the variety available, the quality and usefulness. While many sources provide valuable information, some sources provide information that is deliberately misleading so be careful before you buy.
- Not choosing a payment method that is more advantageous to you. There are a variety of payment methods to buy things these days ranging from cash, check, debit card, mobile phone and lay-by. Weigh the costs and benefits of the different payment options and choose the best payment method for the goods or service you are buying and what will be beneficial to you.
- Not considering a product’s durability and maintenance costs. When you are buying something, say a car, consider before making a choice how old it is, if the parts are readily available and if you can maintain the car without it becoming a burden more than a pleasure.
- Not choosing to save some money and spending it all every month. The earlier you choose to save, the more money you will be able to accumulate for future spending.
- Not having a savings goal. You need to have a savings goal and identify steps to take in order to reach that savings goal. The goals are different for different people. Most common are large purchases such as cars, plots, university fees, building etc. and occasional or unexpected events such as replacing appliances, weddings, memorials and trips out of town. How much to save and for what to save is all based on your family situation, tastes and preferences.
- Not comparing the options from different financial institutions. Compare the annual percentage rate, the initial fees charged, and fees charged for overdrafts, loan late payment or missed payments. Financial institutions are constantly competing by offering customers different incentives. Shop around because not all financial institutions are the same. Unless, all you want is to receive a salary, withdraw it all and spend it all comparing what is out there is not for you. By the way this habit of having a salary only account will definitely ruin your money aspirations.
- Not borrowing money when you can to pay for durable goods such as appliances, cars and houses. There is a lot of sense in receiving something of value now and agreeing to pay for it over time, or at some date in the future, with interest.
- Not being consumer savvy by being aware of sales tactics or the laws that are in place to protect you. Including the right to get your money back and return goods that are defective, not what they were advertised to be or if the seller did not provide full disclosure or is using harsh collection methods.
- Not participating in or enrolling in an insurance scheme. Pay a small cost now if it means you can avoid a possible larger loss later. The risk from accidents and unexpected events is an unavoidable part of daily life and it is wise to take out insurance for much more than the quarterly third party cover for your car.