MONEY as we all know is a NECESSITY.
Some call it evil, some call it good. Some worship it, some despise it.

Whatever, your view on money is, the fact remains that in the end, you will always NEED IT to meet your earthly needs. If money is so important, then we have to ensure we have the right perspective towards it. We have to be careful not to make it become our master, rather we should aim to make money our slave. In order for you to master money, we have to understand how it works. And you going to start by avoiding these 14 MONEY MISTAKES.

The post with the hashtag #moneymistakes has been in circulation in my company for sometime now. After reading it over and over again, I began to gain some insights into the reasons behind the financial traps many people find themselves in. I am going to be sharing those insights with you in this post.


#MoneyMistakes: 1.

Never borrow money with interest to start a business (except for salary loans); only borrow to grow your business. This is because business takes a long time to gain ground and begin making profit yet for most of the loans you begin paying back a month later or even earlier. Hence, never borrow to start a business expecting that business to be the one to pay back the borrowed money plus the interest.

This is common sense. As a Startup, don’t expect to get the bulk of your funding from the bank in the form of loans for the obvious reasons stated above. There are several other means of sourcing for FREE funds or equity from investors in other to start for business. As you grow, and need to expand, you can start thinking of BANK LOAN.


#MoneyMistakes: 2.

Never spend money you haven’t received. Don’t even promise someone money based on a promise you have from someone else. Don’t hear somebody say, “Ezra come to my office tomorrow at 9am and pick 2m” and you go and buy items on credit hoping to clear when the promised money comes.

I think it is much better to take someone by surprise than make promises you are not sure of keeping.
Even the Bible says in Proverbs 11:15 “He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure.”
Before you stand in as a guarantee for someone, be sure to know the person very well….
More on this later on in #MoneyMistake 7


#MoneyMistakes: 3.

If you want to ever save, whenever you receive money ensure you don’t start spending before taking out the savings hoping that you’ll save what remains. Normally what remains is zero. And things to spend on even incite their ‘relatives’. Why is it that when money to spend is not available we naturally find a way of managing?


Learn to pay yourself first before paying your bills and “other people”.
It sounds kinda selfish right? ? But that’s definitely the right thing to do if you don’t want to run out of “saving funds”.


#MoneyMistakes 4

When you get an opportunity to meet a very wealthy person never ask for money. Ask for ideas on how to make money. They can even choose to give you money on their own after seeing that your ideas are great, but let getting money from them never be your objective.


This is similar to the saying: “Don’t give a beggar a fish, rather teach him how to fish and he will be ever grateful”. Some FINANCIALLY RESPONSIBLE “rich” persons understand this concept very well
Others who don’t understand will keep on showering people with money in the name of “youth empowerment”, like what our politicians do from time to time ?
What happens after 1 week? You find the so called “empowered people” returning to ask for more money because they must’ve squandered the previous money. The best way to empower a man is to teach him a skill that he will use to create value, meet a need or solve a problem. That is the best way to avoid a parasitic kind of relationship which can be annoying.
I have a few well-to-do people around me that I would have approached to ask for money, but my pride won’t let me. I keep saying to myself, how about I come up with a great business idea that will generate money and then ask them for funding instead? I believe that will be more productive and profitable.


#MoneyMistakes 5

Keeping your seed instead of planting it. Many people stop at saving. It’s very, very difficult to save and have all you need to maintain your lifestyle especially after retirement. When you save, your savings are seed; plant it. When you just keep it, some seeds begin to die (eaten by inflation, emergency spending and the likes). That’s where I recommend that you educate yourself about the different types of investment you can use to grow savings. I am not necessarily talking about putting the money in a business because you can easily lose money on a business. I am talking about putting it in an investment.

In case you did not know, if you keep 100k in the bank today, chances are that after the next 5 years, that amount would’ve significantly reduced as a result of bank charges and INFLATION (if you studied Economics, you should better understand what I mean here).
The best thing to do after SAVING is to plant that seed in an investment that will yield returns in the long run.
Robert Kiyosaki, author of “Rich Dad, Poor Dad” once said that “Savers are losers” – and that is very true.
And by INVESTMENT, you have to be wise so you don’t get scammed by Ponzi schemes. That’s topic for another day, though.


#MoneyMistakes: 6.

Never lend someone money you are NOT willing to lose. By the time you lend money, be contented in your heart that should the person not pay, you will not die. You should not even lose the person as a friend. If you realize the person can fail to pay you and you are ok then lend. If you find you would even hate the person’s entire clan?, please advise the person to go to the bank.


If you have downloaded and read my FREE eBook, you will understand better what is implied here.
Money has been the reason for best of friends parting ways. It is the 2nd major cause of Divorce, after Infidelity
Especially if you are in business, DON’T LEND your Business Capital to even your Mother.

Yes, it is that serious!
If you do, then be confident that peradventure you can’t get the money back, your business won’t shut down.
I almost made this mistake some time ago. Personally I have lent about 10k of my pocket money to a friend on the promise that I will get it back “next week”. Guess what? Up until today (three months later), I’m yet to get a dime but we’re still relating with one another as if nothing happened. I am confident that he will pay back. But in case, he CAN’T, I won’t kill him. Life will still go on.

All, I am saying is that you should be wise so as to preserve the quality of your relationships
LEND ONLY WHAT YOU CAN DO WITHOUT if you can’t get the borrower to pay his debt in time.


#MoneyMistakes: 7.
Never append your signature to guarantee someone on a financial matter if you are not willing or able to pay the money. Do I have to explain that one? No. It’s self-explanatory.

I mentioned earlier that I will come back to this issue of “being surety of thy brother”.
Okay, let me use an example from one of the most recent happenings in our society.
I believe you are aware that after months in unlawful prison custody, the Federal Government of Nigeria has finally released Biafra agitator, Nnamdi Kanu? Oh yes, Nnamdi Kanu has been released on bail for health reasons, but because of the perceived threat he poses to National Unity, the court did that under STRINGENT bail conditions.

According to Naij.com: ‘The trial judge, however, gave some stringent conditions which the IPOB leader must meet before perfecting his bail. According to Justice Nyako, Kanu must meet the following bail terms, “Produce three sureties and two of whom must be; (a) highly respected and recognized Jewish leader and (b) highly placed Igbo person such as a Senator. The third surety must be resident in Abuja with a landed property in the same Abuja. Above all, the three sureties must deposit one hundred million naira (N100 Million) each.” ‘
What this means is that, should Nnamdi Kanu decide to act funny and NOT honour the bail conditions by running away or trying to reform Biafra, the court will hold the Guarantors responsibile and they stand a chance of LOSING their reputation and/or money.

So before you stand in for someone, be sure that the money you guarantee is NOT something that will make you go bankrupt.


#MoneyMistakes: 8. Avoid keeping within easy reach money you don’t intend to use in the short term – don’t for instance walk with 100k in your pocket when all you plan to do in a day cost 20k.

Pick pocketing is real. Be wise. Also doing this ??will help you avoid impromptu spending.


#MoneyMistakes: 9.

Avoid keeping money at inappropriate places eg in socks, under the pillow, in a pit, in the sitting room, in the bra, in a travel bag that you will place somewhere eg. when in a bus..

Who does that? Of course, recently the EFCC is discovering millions of dollars in hidden in abandoned buildings and odd places. Financially Intelligent people don’t do that because they want their money to work for them.


#MoneyMistakes: 10.

Spending money on an item that you can do without (at least for the time being). These days when I pick money from my pocket, before paying for something I ask myself: What would happen if I don’t buy this? If I find I can live with the consequences of not having that thing, I smile and walk away.

If you know that you can do without buying that extra shoe, wristwatch, icecream, movie or latest android phone, then why spend money on it at the expense of your future investment seed. Choose to invest in books, knowledge and assets instead.


#MoneyMistakes: 11.

Paying an amount that’s not the minimum you can get that same value for. In other words, if you pay 70k for a shoe at Topman that you can get at 30k at Kejetia/Kanta Arcade, that’s a terrible money mistake except for those who have achieved financial freedom.

Only the “financially free” can afford to spend 20k to get the same pizza you’d spend 4k for because they know how to spot and reward Value. ?
The problem comes when someone who is yet to have a steady means of Cashflow tries to do the same thing in order to impress others…. Bro/Sis, you’re digging your own grave o.
Always asks for, negotiate and obtain the “least possible price” for any item you buy from the market, WITHOUT compromising the value. That is the only way to ensure you are maximizing your income.


#MoneyMistakes: 12.

Wanting to be the savior of the world by helping with ethane in financial need. My sister/brother you are not Jesus. If you find it so hard to say No to a financial demand, you may think you are practicing generosity when in actual sense you are practicing how to commit (financial) suicide.

I have elaborated on this earlier. Be wise with your money, especially when friends and family come a-borrowning. It is an important resource that can determine whether you will starve or feed in the future. Don’t let over-sympathy rob you of your hard-earned money and ruin your precious relationships.


#MoneyMistakes: 13.

Consistently spending all you earn or more than you earn is like having a drum where you have an inlet that’s smaller than the outlet. It will never get full. And should the inlet ever reduce significantly the drum will run dry. If you do it the other way round and the inlet is bigger, it will get full and even overflow. Hence, we have to always ensure we are widening the inlet while narrowing the outlet – all the time.

Don’t earn your money into a pocket with holes. Don’t buy into the idea of “living within your means” because it is practically impossible for most people. They usually end up borrowing to survive when their living expenses exceeds their “fixed” means as a result of inflation and high cost of living.
Instead, I want to introduce you to a different philosophy; that of “continually expand your means”.
By expanding your means, you are making the “inlet” larger than the “outlet” and you will be on your way to Financial Freedom as ‘the drum overflows’.


#MoneyMistakes: 14.

Thinking about short term only and forgetting about long term or thinking about the long term and forgetting about the short term. What of those who find they are one paycheck away from salary? Are they thinking about the long-term needs?

This is a rhetorical question you must answer for yourself. Is a monthly salary your one and only means of income? In my book, I made an analogy of what it means to sit on a stool that has one leg and one that has 2, 3, 4 or more legs. Which is more stable? Which is more secure?
You can answer that for yourself and DO SOMETHING ABOUT IT.

There you have it – the FINTEL Coach’s analysis of common MONEY MISTAKES, every financially intelligent person should avoid. I want to believe you have learnt something new that will help you improve your financial life.

You can get more information about Financial Intelligence by downloading and reading my FREE eBook:

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