These mistakes put you in the Most Probably Never Going To Get Ahead category. If you make more than three mistakes on this list, it’s time to wake up. Soz.
You buy high and sell low.
This idiom isn’t just applicable to shares. It’s time to think about your car and wardrobe.
Does ‘buy high, sell low’ sound like your investment strategy? Do you see something that you want, and want now, then impulsively buy only for it to lose it’s shine not long after?
Perhaps you bought something on a whim and can’t bear the pain of it sitting unused in your cupboard so sell it at a loss.
Either way you need to pay attention to the below rule.
The rule: Don’t buy things you cant afford or on a whim.
You spend or save whatever is left over.
What most people do when they earn a dollar is pay everyone else first, their landlord, their credit card, their telephone bill.
Rather than blindly saving whatever’s leftover, invest in you. A good rule of thumb is to set aside at least 10 per cent of your gross income (that’s after the bills are paid) to be pocketed into a long term investment like a house, further training/education, shares or superannuation.
Bonus tip: make the process automatic.
The rule: If you want to get rich, you have to pay yourself.
You pay late fees.
It’s easy to focus on the present and the things you want to buy. Let Future You worry about bills – even though you may accumulate late fees. You’d be angry if your phone company increased your bill by $10 a month and you certainly wouldn’t throw a crisp $20 on the ground, so why allow yourself to pay an avoidable late fee?
The rule: Pay on time. Make it an automatic direct debit if you need.
You say no to free money.
Using the same principle, would you ignore a hundred dollar note on the sidewalk? Of course not. You’d bend over and pick it up. So why are you passing up other opportunities to get free money? If the government are happy to match employee contributions to your super but you’re not participating because you can’t ‘afford it’ then you’re passing up free money.
The rule: Leverage government or bank offers.
You don’t step outside your comfort zone.
If you want to build wealth, be successful, or get ahead in life, you’re going to have to get used to uncertainty or discomfort. This can mean investing in a property, studying to further your education or taking a chance on a new role and quitting the steady pay check.
The rule: Take a (calculated) risk.
You don’t have a goal.
If you want to be successful, you have to love what you do and know where you want to be in three, five and ten years.
Too many people make the mistake of chasing someone else’s dream or staying in a role they believe will bring them success. Eventually. One day. Maybe. It’s only a matter of time before you become dissatisfied and, bad news, your performance and compensation will reflect likely it.
The rule: Have a research and education-backed plan.
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