Losing money when you are trying to make money can send you spiralling into an abyss of debt, misery and poverty. These are the money making mistakes you can avoid:
Jumping in Too Quickly
From cars and clothing to wigs and shoes, to makeup and bags there are so many ways of making money that you will come across and some people may even try to pull you in by using the S-word. That they have found the “secret” of how to get rich!
Getting rich is not a secret because everybody knows that it can and does happen. However, you need to be wary and do some research before taking advice from friends and relatives that claim to have a really good idea for how to make money. Yes, you might feel pressured to jump on the bandwagon right then there but control that urge!
Jumping in too quickly and not doing your own research is the fastest way to lose your money. It’s OK to tell the person that you need time to think about it. Use your own experience and some common sense to ask them as many questions as you can possibly think of.
Looking for Fast Returns
If you’re not willing to wait, don’t buy a bunch of supplies and equipment and plunge into business. If you do, you’ll come out poorer on the other end.
If you decide to start a business prepare to put in the work. Just starting a business is not a way to easily get rich because you can lose a lot of money if you don’t understand what goes into that business. And besides knowing the product, the customer and the price levels what goes in is a lot of work and in the end; patience is going to be the currency you will depend on.
Nothing is going to make you rich today, but it might make you rich in some years if you do your research, know your stuff and have a little patience.
Following a Fad
Do not start something just because it’s on-trend. While it may give you profit for a while, once the trend is over, you may be stuck with the “not so cool” stock and lose money.
Tastes come and go as do trends so if you use them as a basis for getting in a particular business to get rich quick, your money will fade away, too. This is because sometimes investing in a money making venture is a lot about timing and having an idea of when to get in and when to get out. Even a great investment idea can backfire if the timing is off. For example, you will not invest in a large consignment of winter clothes and expect to sell them all quickly in the middle of a very hot period of the year will you?
Yet there are plenty of people out there who’ve been bitten by jumping on the latest trend band-wagon only to be left counting their stock and looking at an empty bank balance.
The next best thing is not always the next big thing to make ‘your’ millions. Tastes and habits of people are extremely fickle and also, some businesses lucrative as they may seem are rife with shoddy practices, unethical activity and may also be scams.
Betting on sports and games at betting shops and on websites has become very popular but there is a danger in this. Yes, you may get lucky and win a large sum, but unfortunately, many people dig themselves into a hole and then keep digging deeper with sports betting. Once you lose a few thousand, you may place a bet double that size, and then lose that bet, and continue doubling until you have lost a huge amount of money.
While gambling has become easier than ever because it has become widely accessible and acceptable most people realize they won’t get rich quick by gambling. A few take things too far and lose significant amounts of money. DO NOT BE THAT PERSON!