1. Spending every kobo earned – Most Nigerians earn to spend which is a recipe for not achieving financial goals. In 2021, set goals and commit to saving towards achieving them.
2. Keeping up with the Joneses – Some Nigerians think they’re in a spending competition with their peers and hence spend excessively to keep up with a supposed lifestyle. If this is you, understand that you don’t need that undue pressure. Spend reasonably and within your earning limits.
3. Losing money to Ponzi schemes – Even with all the horror stories out there, many still put their money in get-rich-quick programs they don’t understand just because it promises outrageously juicy returns in a short time. Never forget that if it sounds too good to be true, it probably is.
4. Regular withdrawal from investment – Unless the situation calls for it, depleting your investment before it has had time to accrue dividends is a mistake. It is also a setback on the goals you are investing in. Keep your eyes on your goals and resist the temptation to draw on your invested funds.
5. Not budgeting – Budgeting tells your money where to go and keeps you in check when it comes to how you spend your money to achieve your goals. In case you don’t budget, January 2021 is the perfect time to start and you’ll see a big change in your spending habits.
Some of these money mistakes affected many when the pandemic hit last year because they didn’t have a financial cushion to weather the storm. But what do they say about “Once bitten twice shy”?
It’s time to take precautions not just to avert unexpected situations, but to have enough to achieve your dreams (we’re sure you have some beautiful dreams for yourself and your loved ones).