Just because you are born in poverty doesn’t mean you are poverty…
In the recently concluded, America’s got talent, and the South African Ndlovu Youth Choir left us with a powerful phrase, “just because you are born in poverty doesn’t mean you are poverty”.
You might be wondering why your financial journey is not any close to approaching prosperity.
I have come up with a list of things you are probably unconsciously doing and it is affecting your finances. Check out these 12 financial traps to avoid.
Let stores rule your budget
If you are going to buy every glittery item you see the moment you pass by a shop, then that is the beginning of your financial doom.
To think of it, you might not need that item, or you may have one that’s already serving its purpose.
Get yourself together when passing through the malls or else they will control you.
Ignoring the budget plan
You are smart enough this Christmas and you have come up with a budget for your shopping.
Already, not making a budget is a downfall to your finances. But, making one and failing to adhere to it because you are caught up in a shopping frenzy is as deadly.
Be careful, or you might not have a great new year ahead. Make a low budget for your shopping and stick to it.
Self- love
Treat yourself to something(s) nice, not once but twice or thrice or more. Self-love is a mandate for any breathing human.
When treating yourself to something nice becomes a routine because you keep wanting more and more of it then you are no longer loving but spoiling thyself and you may fall in the financial trap easily.
Know the difference and create a limit that inspires you to work harder for that treat.
Live paycheck to paycheck
You are earning that Kshs 30,000 per month but your monthly obligations cost above your paycheck.
Where is the extra expenditure coming from? You know what this makes you look like a swindler.
You are living below the poverty line because your expenditure puts you to negatives.
Whatever little amount you are earning, one can at least save a monthly percentage, and there is no excuse for it.
Consume without a plan
Back at my first job, all my payments were made through Mpesa- Kenya’s number one mobile money transfer.
I would make payments through Mpesa and never bothered to check my balance. Not until I woke up in a financial emergency that I couldn’t escape and my M Pesa balance was insufficient.
This is how I sadly went broke.
Making a budget is one way of planning your expenditure such that you don’t end up in a state of bankruptcy.
Postpone your debt clearance
This is what I’ve witnessed with friends, especially under the HELB students’ loan. They are getting into these financial traps so eagerly..
It has reached a sad point of defaulters making fun tweets of how they would rather die than clear their HELB loan. These guys might not have noticed the rottenness they have put to the use of the local taxpayers’ money. Even that 80-year-old granny in the far North Eastern spread of Kenya is paying tax. This is how we choose to payback?
By defaulting to clear our loans? Ironic.
The least amount you pay every month can reduce the huge debt you are incurring as little as Kshs. 1,500 monthly is enough to make a difference to your debt.
Rather it is cleared at chameleon speed than it grows because you are not clearing it at all.
Or would you rather your name be print on national newsprint as a loan defaulter? Consequences of being carelessly broke.
Procrastinate over your financial goals
Making excuses over fulfilling your financial plans will definitely throw you into a deep muddy ditch known as brokenness.
The earlier you start, the faster you do make a difference.
When you start making excuses like, “I’ll wait to start saving next year”, that is when you go wrong about how finance works.
Keeping up with the trend
In everyday life, new gadgets, cars, fashion styles are exploding.
Because we don’t want to be left behind, we are duped into purchasing them.
First of all, at the debut of a new trend, items are expensive, and that is when they make the most sense to us.
We are going out of our way to make purchases of iPhone 11 max pro when our iPhone X is still new and functioning right.
Unfortunately, these are all depreciating assets.
The value of your car won’t stay the same after a years use so even if you decide to sell it, the money lost cannot be gained.
Why not invest in fixed assets like land?
Getting too many loans
The saddest thing about my counterparts today is borrowing one loan to clear another. I’ll never stop emphasizing on this. This is a rough way of building your debt as your it still leaves you in a debt kind of situation.
Too many loans at once will also diminish your credit score, meaning; you will be denied a loan at the moment you need it most.
What a broke lifestyle that will be!
Horrible financial advice
Look careful where you get your financial advice.
Just because they are employees of some public institutions doesn’t mean they are good teachers. These guys are probably surviving on leverage.
Paying for services you can do yourself
We claim we do not have the time to do our laundry or wash our cars.
What you don’t know is doing them yourself can save you a fortune.
Make careful priorities that differentiate wants from needs.
You can do without a want and not a need.
Gambling – the worst you can do..
Gambling is profitable when you win as you might hit the jackpot.
Yet again, the chances of your win are way slimmer than an anorexic celebrity.
The fact that it is addictive and you keep trying as much to win, you might never notice how broke you are getting because of your binge gambling expenditures.
To sum this up, I think financial education should be made compulsory in our 8-4-4 education system.
If you are a victim of brokenness, you might be doing at least three things on this list. Give them up! It is never too late to start saving so you can elevate your financial life.
Check these golden rules on saving money effectively.
(4 votes, average: 3.75 out of 5)
Loading...
