Topic: 4 COMMON MISTAKES PEOPLE MADE WITH THEIR FINANCES IN THE PAST YEARS (Read 768 times)

Personal progress takes time. Brick-by-brick foundation building, notably for skills and finances. The job market is tight, but adaptation and resilience are your best friends. Think like chess and plan several moves ahead

Dependence is a phase, not a lifetime. Thank goodness parents give us a head start, but we must grow up. From being supported to supporting is scary yet exciting. Finding balance between earning, studying, budgeting, and dreaming is key. Remember that each step toward self-sufficiency empowers you. Accept the challenge since it shapes your character and future

Most of the mistake have seen people make is overspending and emergency funds mostly lack of emergency funds, sometimes people don't intentionally spend and forgetting to save but due to expenses of family needs and other things make people spend their money and in a situation where the salary is not enough to take care of the family and the current economy can hinder saving for emergency purpose, in this situation multi task will be the best for such person like if you settled for less last year it's best to work for more this year to avoid such mistake, multi working choice is just the best and this is where investment can be introduced to such person.
Overspending is just too common and sometimes you feel like your friends spend same amount but the work and pay differs so from my observation a lot of people spend their money due to influence from friends, my best opinion this year for everyone never settle for less.

That's an excellent notion, and I think your investment and budgeting methods are highly disciplined and sensible. Although there are others who contend that you ought to prioritize self-indulgence and live in the present, I believe your long-term approach of allocating the majority of your earnings to investments and savings makes sense. After all, you're positioning yourself for financial security and a better future if you can keep your spending under control and make smart investment decisions.

The bad thing in question might be how a person can change his lifestyle for the better, for example having criteria about how to place goals in the self -development process in the skill area. The purpose and motivation to change must be in the background as a goal to change lifestyle for the better, without good preparation and financial plans generation of young people will be increasingly difficult to develop because at this time the availability of jobs is so difficult.

There are limits when someone depends on parents and maybe parents will only bear our burden to the high school or college level education process. After that we are required to find our own source of income by working, from this, at the beginning we began to be responsible for ourselves before going to a more responsible level of life.

And changing bad habits into better ones is not easy and not a fast process as long as the young generation has no goals and no motivation to change.
What I mean by that is that goals and motivation are needed as a starting point, which is then done with the skills you have.
If daily habits depend on parents, such as the need to eat and drink, education is 100% thought of by the parents, it is very difficult to change unless you are in a really tight situation. At that time his brain will think and that's when it all starts.

In essence we can easily manage our expenses and income if we have a good financial structure, although sometimes people who have fairly stable income are much more wasteful in spending on things they consider important. An emergency fund is still considered much more important even if someone cannot generate a stable income because at least the amount of instability can be used for much more productive things. Investing in themselves is related to what they are able to do and perhaps there is a need to have self-skills.

I agree with that statement and indeed the younger generation must be able to improve their skills to make money because without skills it will be much more difficult for someone to reach the stage of financial freedom through whatever job they are involved in. Managing money is not as easy as it sounds, but that doesn't mean it's impossible to change bad habits into better and more targeted ones.

I agree with what you said, they have points and what often happens there is the failure to track expenses. Most of us just spend as much as we want while having a budget or money without thinking about it properly.

as I said before, if they have a good mindset then they can take advantage of current technological developments. and what you say is true, even though looking for work is difficult, that is not an excuse, because of course everyone wants their life to develop financially or economically, many young people still don't have a decent job so it's not surprising that many young people are too lazy to work because it is difficult to find work at the moment, I have experienced this where I spent weeks looking for work by applying here and there to the point that I myself felt tired which made me shed tears, because I felt how difficult it was to find work.

It's normal for them to have pessimistic thoughts, because with their economy not being able to fulfill it properly, this makes them think for themselves. In my opinion, if they can't fulfill their basic daily needs or the economy is still lacking then they don't have to force investment, because of this. it involves money and of course if their needs and the economy haven't improved it means they don't have enough money, also sometimes when their finances improve it's only enough to meet their basic needs and the economy, so you don't have to force yourself to do this, I think everyone can't do this if their finances are unstable.

Nah, I don't think that all of those experiences are going to be wasted at all. It depends on how you're going to apply that to yourself but with that perspective that you've mentioned, it's really going to be wasted at all. Yes, the market is changing and it is dynamic but as a person, you're also adaptable and that's not going to stop you from learning, improving and adjusting with the conditions that you're ever dealing with. That's why I have said that it is an advantage for someone if he's got that much experience and applies it well to his/her finances.

Spending money on yourself is not wrong, because of course everyone should be able to pamper themselves and that is for their own satisfaction. However, what you have to pay attention to is that most people who don't invest may be there are several things that make them unable to invest, namely their income is not enough or they don't have a job that produces a steady income at all, it could be that they already have a job that produces an income. but of course there are needs that must be met with certainty and if their income is limited then it is natural that they cannot invest.

Here we are discussing income which is synonymous with money, money can change a person's attitude, right? You yourself are basing it on IF, "If I have income" this is just if, everyone who has money tends to have different thoughts, so there is a possibility that you will also be like that and feel that way. Even though you prefer a larger investment, that doesn't mean you won't have economic problems, right? So in my opinion there's no harm in spending the money you have as long as it doesn't harm other people. What's wrong with that? and I myself have a fairly high income, but I share it fairly, namely 50/50. because I know there could be problems in our daily economy. Moreover, saving or investing doesn't have to be a high amount, we can do it, if you can't, don't force it.

That's the thing. It's easy to set up and maintain healthy financial habits if you have a nice surplus of your regular income over your expenses. But all the advice regarding emergency fund and investing is pointless when one does not earn enough to meet their needs.
That's why probably the most valuable advice, especially for younger people, is to "invest in yourself", i.e. get a set of marketable skills which will boost your income and make it way easier to manage your money or maybe even retire at relatively young age. Being on a low income your entire life can be a real nightmare.

You and anyone else will decide to live independently through alternative paths and currently the availability of work does not have to be an excuse for anyone not to develop. Even though jobs are difficult to find, people have to find ways to get out of the economic pressure and existing technological developments make it easier for people to find income. But it takes skill and you have to understand the technology itself because when we know how to make money it will be easy to do it.

Basically what makes people become more burdened is because they are unable to meet their family's needs, so pessimistic thoughts will arise about doing anything. So before getting involved in many things such as investment, we should look at the position of the financial structure first and then look for patterns to get involved in investment. When our daily needs are met properly, when we invest, we don't have a burden, so we can focus more and not place risks in it.

That's true currently looking for or getting a job is difficult, because this is what happens in my country. The large number of unemployed cannot be hidden because job opportunities are limited too. but if we have a good mindset of course we must be able to take advantage of current technological developments, because current technological developments make everything easy to access or do,  including making money  there are many ways to make money by utilizing current technological developments but for this it depends on yourself who carries it out.

I agree with you, if basic needs or basic needs have been met in the sense that there are no major shortages then investment can be carried out consistently, which must also be owned because if investments are carried out inconsistently, they are vulnerable to losses,  and before making an investment, of course there must be learning, understanding and knowledge about investment because it is impossible to make an investment without the slightest knowledge, it is the same as lying.

some may take issue with 2 to 4, I think emergency funds can be obtained if we can control points 2 to 4, what most people do is not invest, and prefer to spend their money on themselves.
If I have income I prefer to save most of it to reinvest, so the comparison is possible, 40% for expenses and 60% for investments.

What you say is completely correct. live simply, be yourself, be smart about managing your finances well, if we can manage our money well then we will be free from debt, and can earn more money.

If you are single, don't waste your time learning to manage your finances well because managing money when you are single is easier than after you are married. For friends who are still single, take advantage of this opportunity to build assets.

If you are married and have children, teach your children from an early age how to manage finances, if you follow the school mindset then the results will not be much different from most graduates today. Minimum mathematical (financial) mindset 1+1=5

should also depends whether we can "afford" it on the way of improving because frankly some people might not be that lucky enough to have such opportunity in the first place.
its like trading, we can be making mistakes after mistakes and learn from it, of course we will eventually have firmer mental and aptitutude to trade but then again the big question arise, after so many mistakes that we've made so far, do we still have the capital to make money? well if not then all that experiences are just wasted experience since the market is dynamically changing, the experience we learned from the past doesn't necessarily gonna be useful in the future.

That's right, we just need to find the right strategy that works for us. If we're not so good but we're inspired in improving and learning continuously, someday you'll hit the perfect strategy for you. It doesn't have to be on an instant correction with those mistakes, it is a continuous and learning process. Like the rich folks, they have never learned it with a single test or experience, it has come long way before they became good with their own businesses, strategies and processes. That's the advantage of someone who's eager to become successful, not getting afraid of risk and failing because he or she understands that at the end of it, there's always the positive effect of it for personal growth.

I agree with you that gold investment is often considered by people as a form of value protection, perhaps this is because gold has high value stability. From some information that I get, investors often buy gold because gold has protection against inflation and gold is also considered an item that is easy to sell even in the form of gold bars or jewelry. In the digital era like now investing in gold is very easy, even without physical gold can be invested through financial instruments such as precious metals and gold mutual funds.

Talking about finances cannot be separated from how a person can make money and the current difficulties because jobs are quite difficult to find, making it increasingly difficult for people to reach the stage of fulfillment in daily life. The economy plays quite a role in human life and when a country's economy is unstable, this can affect the people within it. Investments cannot be made if a person does not have a fixed income because the main focus is how to meet the needs of living with his family.

Therefore, before talking about investment, people must first look at their readiness to meet life's needs. When life's needs are met well, investments can be made regularly using certain methods and the level of confidence in making money from investments is also based on how strong their finances are and if the capital is large, the profits will definitely be greater.

of course that's right my friend, basic needs are the main thing, because I think even if they force to invest but with their needs not met it will kill them, so I think before the investment stage they must have a job that can make their own economy and their own basic needs well met, and it's true what you say that the modern economy does not always help people with limited income, because with the current developments there are still people who do not have jobs.

to get a consistent income is of course important because it can help them to survive and prepare for the future well if they have good desires such as investing or saving. but what must be considered is the difficulty of jobs today that have a consistent income, because I myself once got a job with a certain and large monthly salary, but before that I had to pay first to be able to join and with my poor condition it even became a burden on my own mind.