Have you read last week’s guide to achieving your New Year resolutions (http://bit.ly/1BooM0a) yet? If one of your aims this year is to get more comfortable with your finances, read on and share with your network.
1. Depending on only one source of income: Your salary may not be enough to help you build lasting wealth. You can make that salary start working actively for you by using a chunk of it to make investments that will create dependable streams of income flows for you e.g. start a small business or invest in mutual funds. (Click here to learn more about our mutual funds: http://bit.ly/1tC4ObD)
2. No Retirement Savings Account: This is the year you should fix this mistake. You’re never too young to start saving for your retirement and the earlier you start saving, the better your quality of living when you retire. (Start here: http://bit.ly/1mso8ZN)
3. Spending without a budget: If sticking to your budget is not one of your New Year resolutions, you need to make it one. A budget is an itemized estimate of your expected income and expenses over a given period of time. The main reason to budget is to help you keep your finances under control by keeping track of how much money you are spending and where it is going. (Need assistance? Do a web search for ‘budget templates’)
4. Investing without researching: Cardinal rule - before you make any investment of any sort, do your research first. Do not depend solely on the sales messaging. Go out of your way to do your own research and get proof that the investment you are about to make is likely to be profitable.
5. Not having a financial goal: It is impossible to create lasting wealth without having clear financial goals of what you want and how you plan to get there. Making a mental note of your financial goals is not enough, you need to write them down and commit yourself to it.
Do you know of any other mistakes that should be avoided? Share with a comment below or reach out to us with any feedback on Twitter: @StanbicIBTC or Facebook: fb.com/StanbicIBTC