When a person becomes financially independent it is just natural to make some small mistakes once in a while as that is how we will learn. Right? So here are some advices which would save you from doing some money blunders and how one can learn from other experiences.
When ignorant about quality while purchasing anything
It is normal to get swayed by the prices and ignore the quality of the product you have planned to purchase. Basically we only understand short term benefits and ignore the long term ones. Hence train your brain and make a habit of buying only a high quality product.
If you are earning and spending as soon as you are earning, then what is the use of that? If you are still thinking about going for a small vacation what’s the use? There should be enough money if one falls ill suddenly and also it’s of no use when you are still thinking about planning an abroad trip, even when you are earning a handsome amount.
If you are not bound to spending then you would probably spend extra than what you should. Keeping a budget is just like keeping a journal which helps you know what costs you more.
Not taking free money
If you have an EPF account and you have no idea if your money is going into that or not, then you are going wrong. The money which is saved in your EPF account is tax free which means no tax is charged by the government on the money saved in your EPF account. It is a bit similar to 401 (K) account which is followed in US. Both the employer and the employee have an equal contribution to your EPF account and if you are missing out on grabbing this free, tax exempted money then you are missing a lot.
Having a Television connection
Having a tv not only eats up your money but also steals important time from your precious day. People work hard all through the day and even on weekends just to make their dreams come true, whereas you would be endlessly scrolling down the channels wasting the precious time.
Destroy your credit card
Having the balance amount is not the money you have earned but its the loan you are taking which you will have to pay later with extra interest rates.
Living beyond your means
It’s the 21st century where everyone around us are living a high profile life even though they are going broke by the month end. Your weekend clubbing or eating out with friends makes you waste all your money and you surely have to cut out all the expenses.
Our mind generally sees the short term benefits and is unable to calculate the longterm benefits which is a problem for you in the long run.