My mistakes with money

// A THREAD //

I was born in Romania.

A country that suffers from corruption and poverty.

I grew up in poverty by myself, not knowing what money really is.

I only saw the suffering that money does to emotionally attached people.

Learn from the mistakes I did after I moved to another country

1. Putting off credit card debt

"I'll pay it next month"

"I'll somehow manage everything"

These are lies that will put you in more trouble.

It's like a snowball that keeps rolling

Small at first - Gets bigger with time

Paying off your debt should be a priority.

2. Cash withdrawals with credit card

Big red flag.

Remember that withdrawals are recorded

If you can't handle money, it can look like irresponsible spending

Your credit score might sink like the Titanic.

3. Wants & Needs

If you get serious about business, you need to analyze your wants & needs.

Do this

- Print out your bank statement
- Mark your needs with green
- Mark your wants with red
- Analyze

Do you really NEED Netflix?
Do you really NEED Starbucks?

Put them to "wants"

4. Fine print

This messed up a lot for me

Take a closer look at everything that's written on a paper when it comes to finances.

You'll end up paying for something you didn't sign up for

This will mess with your monthly expenses

I messed up quitting memberships

Cost me a lot

5. Only one source of income

If you're happy working 9-5, I'm wishing you the best, I swear.

But you can't ignore the fact that if something happens with the company, you're lost.

Imagine if the company goes bankrupt and you don't have an emergency fund.

What are you doing?

6. Not earning money in my free time

I was scrolling Instagram and Facebook for 4h+ a day.

Didn't notice I was a straight consumer because it was "normal"

You don't have to become "rich"

But let me ask you a question

Do extra $500/month hurt?

(aff) https://gumroad.com/a/424866931 

7. Emergency funds

My car broke down

I didn't expect this

Nobody does when it suddenly happens.

I was lost for a couple of months because I had no money to fix it.

Rent was more important than car payments

Food also

You get the point.

8. Fun spending

Learn the difference between fun spending & fun overspending.

I used to buy items for temporary fun.

After a couple of weeks, I threw it in the corner and never used them again.

The amount I spent was ridiculous

Spend wisely.

9. Buying food

"Let's grab some Mc"

"Subway is around the corner"

I know, I know, it's tasty.

Ignoring the fact that it's unhealthy, it's expensive.

Nobody says something if you grab food once or twice a month.

Just make sure it doesn't become a routine.

10. Trends & Fashion

I owned over 10 pairs of J's

It was a total of over $2500

I bought them because I wanted to keep up with the newest trend.

Today, I know that it was dumb.

I sold most of them & invested the money into my company.

It's not worth it, trust me.

To put it in a nutshell

You don't have to learn it the hard way and live with the consequences of your irresponsibility.

Learn from my mistakes

I still have a lot to learn, but if you take care of these aspects, your finances will skyrocket.

I hope this thread will guide you

If you think it's helpful, feel free to RT the first tweet of my thread.

Maybe you don't need this information

Back then, I'd be grateful to have someone telling me these things. https://twitter.com/TheMindedMentor/status/1353753319982977025?s=20