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10 common money mistakes to avoid
A thread...
A thread...
Mistake 1:
Not valuing your time and treating it like its free
We dont know how much is our per hour cost.
We dont know how much do we ACTUALLY spend, when we watch Netflix 2hrs/day
We dont know how much should we charge for a project
We dont understand how our time = money
Not valuing your time and treating it like its free
We dont know how much is our per hour cost.
We dont know how much do we ACTUALLY spend, when we watch Netflix 2hrs/day
We dont know how much should we charge for a project
We dont understand how our time = money
Mistake 2:
Spending your time on things that are easy to measure money-wise
We will spend half a day travelling to one end of the city, to save Rs. 1000, because we know we will conclusively save that amount
But we won't spend 2 hours preparing for our salary negotiation!
Spending your time on things that are easy to measure money-wise
We will spend half a day travelling to one end of the city, to save Rs. 1000, because we know we will conclusively save that amount
But we won't spend 2 hours preparing for our salary negotiation!
Mistake 3:
Taking too many loans
We over-index on our future earnings.
And spend more today, than we can afford today.
Loans tie us down.
They increase our burn rate.
They make us risk-averse.
They make us feel like we are stuck!
Taking too many loans
We over-index on our future earnings.
And spend more today, than we can afford today.
Loans tie us down.
They increase our burn rate.
They make us risk-averse.
They make us feel like we are stuck!
Mistake 4:
Believing that our income is capped
Our income is not capped. There is no upper limit to how much we can earn.
Instead, it is our spending that is capped. We have to spend a bare minimum to live, to survive.
Instead of reducing expenses, focus on increasing income
Believing that our income is capped
Our income is not capped. There is no upper limit to how much we can earn.
Instead, it is our spending that is capped. We have to spend a bare minimum to live, to survive.
Instead of reducing expenses, focus on increasing income
Mistake 5:
Trying to time the market
Market is too high. Let it fall.
Market is low. Right time to buy.
No one knows the highs or lows of a market. The best way to invest over a long term, is to invest regularly. Irrespective of the price at that time.
Trying to time the market
Market is too high. Let it fall.
Market is low. Right time to buy.
No one knows the highs or lows of a market. The best way to invest over a long term, is to invest regularly. Irrespective of the price at that time.
Mistake 6:
Investing because of FOMO
Everyone is investing in Bitcoin. I should too.
Everyone is selling Bitcoin. I should too.
Everyone is buying ITC. I should too
Everyone is selling ITC. I should too
Everyone is NOT you!
Invest on your beliefs and research and appetite.
Investing because of FOMO
Everyone is investing in Bitcoin. I should too.
Everyone is selling Bitcoin. I should too.
Everyone is buying ITC. I should too
Everyone is selling ITC. I should too
Everyone is NOT you!
Invest on your beliefs and research and appetite.
Mistake 7:
Renting your time and not owning any assets
Everyone in a job isn't going to create supernormal wealth.
Because we have to spend time working, to earn.
Assets, on the other hand, make money, even when we sleep.
Start a company. Own stocks. Create rental income.
Renting your time and not owning any assets
Everyone in a job isn't going to create supernormal wealth.
Because we have to spend time working, to earn.
Assets, on the other hand, make money, even when we sleep.
Start a company. Own stocks. Create rental income.
Mistake 8:
Investing late
20s is the time to have fun. Will start investing in the 30s.
30s is the time to build a family and enjoy. Will start investing in the 40s.
The right time to start investing was when you turned 18.
The next best time is TODAY.
Investing late
20s is the time to have fun. Will start investing in the 30s.
30s is the time to build a family and enjoy. Will start investing in the 40s.
The right time to start investing was when you turned 18.
The next best time is TODAY.
Mistake 9:
Comparing your money to others
Money, for most of us, is an outcome. Not an input.
It is the result of the decisions we have made, not the reason for the decisions we made.
Compare the decisions people made to get to their money.
Comparing the outcome, won't help!
Comparing your money to others
Money, for most of us, is an outcome. Not an input.
It is the result of the decisions we have made, not the reason for the decisions we made.
Compare the decisions people made to get to their money.
Comparing the outcome, won't help!
Mistake 10:
Running after money
Money gives you freedom.
Freedom is a privilege.
But the minute we run after money, we are not free anymore.
Use money to earn your freedom.
Don't give up your freedom to earn money.
Running after money
Money gives you freedom.
Freedom is a privilege.
But the minute we run after money, we are not free anymore.
Use money to earn your freedom.
Don't give up your freedom to earn money.
Bonus:
Not taking risks, when you can
In our 20s, when we have little to lose. And even if we do lose, we have time to recover.
Lesser so in our 30s/40s
That's why our parents love FDs.
But we shouldn't.
Take risks early on.
And don't worry about the short term ups and downs.
Not taking risks, when you can
In our 20s, when we have little to lose. And even if we do lose, we have time to recover.
Lesser so in our 30s/40s
That's why our parents love FDs.
But we shouldn't.
Take risks early on.
And don't worry about the short term ups and downs.
I wish money was a topic that our parents spoke about, or our schools/colleges did justice to.
In the absence of it, we are left to learn from those who have made mistakes and realized what to do.
Or make those same mistakes ourselves.
In the absence of it, we are left to learn from those who have made mistakes and realized what to do.
Or make those same mistakes ourselves.
Here is a thread on the mistakes I made with my money https://twitter.com/warikoo/status/1309359160077750272?s=20
3 books that have helped me tremendously, in understanding money
Rich Dad Poor Dad: https://amzn.to/3d4WpOd
Psychology of Money: https://amzn.to/2MRpT7Q
Intelligent Investor: https://amzn.to/3dihFR1
Rich Dad Poor Dad: https://amzn.to/3d4WpOd
Psychology of Money: https://amzn.to/2MRpT7Q
Intelligent Investor: https://amzn.to/3dihFR1
If you do not know how to care for money, money will stay away from you
- Robert Kiyosaki
- Robert Kiyosaki
