When people hear “biggest financial mistakes” they tend to immediately think about investments, debts, and other common financial topics.
Today, I want to show you how taking care of your health, controlling your desire to not buy dumb sh*t, and learning the truth about those who promise "quick money" can help you stop making financial mistakes.
But I feel that these articles provide superficial and generic advice about how to avoid money mistakes.
Financial Mistakes: Not Taking Care Of Your Health (First Mistake)
One of the biggest financial mistakes that I see people make is that they don't take care of their health.
It may not sound directly related to your finances at first, but if you're not healthy, then you'll make bad decisions and also you won't be able to dedicate time to your work.
If you don't take care of your health, then you won’t be able to make any money.
It takes a healthy body and mind to be productive, effective and motivated.
And everyone should make health their top priority.
You can always make more money as long as you're healthy!
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Here are some of the most important health-related things that I do to make sure I maximize my income.
You can do these too:
There are a lot of things that you can do in order to optimize your life and the most important thing is you have to take care of your health.
Again, If you're healthy you can always make more money.
Not taking care of your health is really one of the most understated and common financial mistakes and it's a common money mistake.
Financial Mistakes: Buying Dumb Sh*t (Second Mistake)
The second financial mistake people make is that they buy dumb shit.
I used to live in one of the most expensive, and exclusive, buildings in the country. Some residents had a net worth of a few hundred million dollars, and they would own Ferraris - yet I didn't even own a car.
I have really nice clothes in my closet (many of them were donated to me by friends), but I don't wear them. I typically wear the same thing every single day.
This behavior helps to reduce decision fatigue (and you should try it too).
Simplify your life and don't make decisions unless you truly have to so that you can focus on only the most important things.
I can’t remember the last time I went shopping.
For me, when I buy something, I feel a responsibility to maintain it. Since I prefer not to feel that sense of responsibility, I tend not to buy material objects.
Make sure you're not buying dumb things (like new expensive cars) just to impress people that you don't care about.
The instant that you purchase that car it’s usually worth 30% less.
The reality is that the best way to impress people is with your ability to hustle and make money.
Not with your ability to spend money recklessly.
Earning money is difficult and requires a lot of sacrifice and energy, why would anyone waste their time and energy by buying things that they don't need?
Teaching yourself not to compete with others based upon materialistic items is a major step to recovering from financial mistakes.
Believing in Easy Money (Third Financial Mistake)
The last common financial mistake that people make is that they believe in easy and quick money.
This is a financial blunder and one of the worst money mistakes.
Fast, easy and quick money does not exist. In order to make good money you have to be consistent.
I value trading in the stock market. I understand that I have to constantly commit myself to improving my skills and that's something that a lot of people are not comfortable with.
They think that going to college / university will teach them successful skills. For many, college is a waste of time.
People are unwilling to invest their time and money into learning important skills that they can monetize.
Instead, they'll email me and say that they have a thousand dollars and they want to turn it into $100,000 dollars. Yet these type of returns rarely exist, and are instead used by fake gurus to who sell fraud and fake dreams.
"If you want to live the best life, you must commit yourself to constant improvement and developing healthy habits." - David Jaffee, BestStockStrategy.com
The fact is that if you want to live a good life, and avoid making financial mistakes, you're going to have to commit yourself to learning valuable skills.
Gravitate towards people who work hard and have good spending habits. People who are committed to constant improvement; who keep their commitments and who understand that trying to turn $2,000 dollars into $2 million is simply not realistic.
In order for you to gain (and maintain) wealth you have to make sure that you make good decisions and that you have good habits so that you avoid common financial mistakes.
Some of the biggest money, wealth and quality of life mistakes include: being self-destructive, not eating healthy, buying dumb things to impress people that you don't even like, not taking care of your health etc.
Biggest Financial Mistakes Summary
The biggest financial mistakes:
Money isn't everything.
Money definitely helps, but it's not as important as many people make it out to be.
Research has shown that once you reach a level of wealth above where your basic needs are met, then money will not substantially increase your happiness.
Remember that the most important thing is to take care of your health.
You can always make more money as long as you're healthy.
Second, focus on not buying dumb things to impress people who don't matter.
I have strong relationships and friendships because people don't feel that they need to impress me.
Be the best person that you can be. Reach your potential, and everything else will take care of itself.
You don't have to impress anyone except yourself.
Finally, learn valuable skills that you can monetize.
There is no easy money but you can definitely improve your financial situation with effort and good habits.
If you have any questions let me know. Leave a comment below and let me know your best tips to increasing your wealth, and also what you believe are the biggest financial mistakes that people make.
Frequently Asked Questions (FAQs)
What are some additional articles about the biggest financial mistakes?
This article by Investopedia is solid: https://www.investopedia.com/personal-finance/most-common-financial-mistakes/
What are the biggest financial mistakes in your 20s to avoid?
Getting into credit card debt, spending a lot of money on drugs and alcohol and not finding a career that you're passionate about are some of the biggest financial mistakes that someone in their 20s can make.
What are some common personal finance mistakes?
Getting into credit card debt, spending too much money on clothes and partying, and having poor credit are some personal finance mistakes to avoid.