While there’s no doubt that some people get some hugely lucky financial breaks in life, on the whole, the size of your bank account is solely down to you. Some people might have been handed a head-start, but the fact that others have become billionaires from nothing shows exactly how your financial destiny is completely in your own hands.
Sure, by the end of this article you’re not going to be armed with all of the knowledge you need to become a billionaire as well, but we will hopefully educate you on some of the common financial mistakes that are probably holding you back. From here on, you can at least lay down the groundwork to provide yourself with a much stronger financial footing.
Mistake #1 – You live from paycheck to paycheck
Let’s address one issue right off the bat; there isn’t a requirement out there which stipulates you must spend every last penny of your pay cheque each and every month.
If you are already doing this, you are already being held back immensely. Firstly, if any emergency costs start to come in, you will probably have to delve into debt in a bid to pay them.
Then, there’s the issue of making money. Your first step is to save so you can earn interest from the bank, but beyond that and it’s about trying to invest to make even more money. This might be through trading, and using something like MT4 multiterminal, or by more traditional means like real estate.
Either way, try and get out of that way of thinking which sees you struggle each month.
Mistake #2 – You don’t negotiate your salary
Another crucial mistake is not being paid what you’re worth. We’re by no means suggesting that you become that awkward employee who is always moaning about what they are earning – but at least make sure you challenge back when necessary on pay reviews.
Remember, it costs a lot of money to recruit people, and companies will generally prefer to retain rather than obtain new staff.
Mistake #3 – You don’t use credit cards “properly”
Contrary to popular belief, not all credit cards are bad news. Use them wisely and they can help you out – particularly if you take advantage of interest-free periods and balance transfers.
What’s the worst thing you can do? Pay off the minimum. As soon as you start to do this you spiral into all sorts of debt and it becomes difficult to pull yourself out.
Mistake #4 – You don’t stay on top of your subscriptions
Finally, how often do you read that magazine? How often do you really read Netflix? What about the gym?
Subscriptions are something that weigh down heavily on a lot of finances, for the simple reason that we quite often forget about them.
As such, every so often make sure you conduct a thorough review of your subscriptions to see what you really are using and what is actually wasting your money.