5 financial mistakes you must avoid in 2018

gboyinwa ajomale

December 28, 2017 6:36 AM

Here are 5 financial mistakes you must avoid in 2018

2018 is the year to start making good financial decisions and also avoiding financial mistakes.

Making financial mistakes will leave you financially stagnant which is why you need to avoid it to achieve your financial goals in the New Year 2018.

1. Living beyond your means

Living beyond your means while the little finance you have is going down the drain is really a drastic financial mistake you must avoid in 2018.

If you keep living an expensive lifestyle you cannot maintain, you end up trying to borrow money from people to keep up with that lifestyle, which leaves you in serious debt and incurring debt is bad for your finances because your focus would be on paying your debt instead of focusing on your financial achievements

2. Taking risk you cannot afford

It is good to take reasonable investment and business risk but if you cannot afford such risks, don’t take such risks.

Before taking risks, be sure it is worth it and make sure you can afford it.

3. Waiting to invest

Do not wait to have a large chunk of money before you think you can start investing.

The best time to start investing is now. No matter how small the income, you should set some money aside for the sole aim of investing

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The earlier you start investing, the faster and better you achieve your financial goals.

4. Not saving for retirement early

One of the worst financial mistakes is not saving and planning for retirement early in life.

You might think planning and saving for retirement early is a waste of time because you have other financial obligations to meet but you might regret your decision in the future.

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The best time to start planning and saving for early retirement should be in your 20s when you are already earning an income

5. Allowing money drains

It’s not a bad idea to enjoy yourself once in a while but if you make it a daily routine to spend so much money then you are making a big financial mistake.

You should abstain from bad money habit that leaves you broke such as gambling or spending on impulse.

Such habits don’t let you achieve your financial goals.

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