6 Ways to Ruin Your Financial Situation
As with many things in life, there are things that can help you get ahead and things that can drag you down. Learning how to differentiate between good and bad information can be difficult. After all, those who are really making money aren’t going to pass on their secrets – why would they?
Sometimes getting ahead means making fewer mistakes than the next person. Learning from other people’s mistakes can be just as valuable as learning from their wins (which they don’t share). Did you know that for a 20% loss, you would have to earn back 25% to get back to being even – the recovery gap widens even more with larger losses.
Below is a list of ways to ruin or negatively impact your personal finances.
Friendly Advice: Listening to and taking the advice from people who don’t have anything. Everyone has an opinion when it comes to money and usually those with the least talk the most. If someone has earned money before and lost it, they can earn it back. If someone has never had money yet talks like they do, well…..
Trust Others With Your Money: Have you watched the Wolf of Wall Street? Do you remember the line where they jokingly discussed how they make money regardless of what happens to their clients’ money? When handing over your money for others to invest, make sure you understand what’s going on. Never be afraid to ask the dumb questions. Ask for fees to be expressed in dollar figures and not percentages.
Hiding Money From Your Partner: One of the quickest ways to financial ruin and relationship breakdown, is hiding money from your partner.
Keeping Up With The Jones: It’s an analogy that is used over and over again. The simple truth is that debt kills, avoid it at all costs – you’ll never get ahead if you are always paying others before yourself.
Don’t Become A Lemming: Follow the leader is a great game for children, not as fun for adults. If you pay attention to news headlines and act accordingly, you may be in for a world of hurt. By the time the reality of what’s really happening in financial markets hits the news, you’re already too late.
“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” – Mark Twain
Don’t Be A Dropout: Where did you get your financial education from? You should never stop learning about personal finance if you want to get ahead. At the very least you should read at least 1 book a year in regards to finances.
Being in control of your money is all about accountability, you can't put things off and hope to become wealthy. The above examples are very basic and are mostly based around common sense. If you want to be successful at something you have to put in the time.