Topic: 4 COMMON MISTAKES PEOPLE MADE WITH THEIR FINANCES IN THE PAST YEARS - page 2. (Read 664 times)

I completely agree with your opinion of investing without a steady income. Hard truth: fundamental needs outweigh investment prospects. I've found that the modern economy doesn't always help folks with intermittent income. A cycle, right? Survival and future planning are difficult without a consistent employment. Yes, obtaining a job today is difficult. Careers are more competitive and difficult than ever

Conversely, I believe in human adaptability. New gig economies and remote labor offer alternate income. Though unconventional, it's a start. This shift in the workforce may help many rediscover their footing. However, policymakers and society must build more inclusive economic settings. Isn't it important to give everyone a consistent income so they can invest and safeguard their future?

Not investing is indeed a mistake but investing without first having savings that will become an emergency fund will be even more wrong. Because in this life it is very possible that there are emergencies that make us have to spend more funds and because we do not have a reserve fund, the usual step will be to sell our investment even though there has been no increase and even worse to sell at a loss.
You must first fulfill all your primary needs, pay off all high-interest debts and also have savings before starting an investment so that you can hold your investment for a long time or until it really grows.

That's right, those who don't have a clear income will find it difficult to invest, because even meeting their daily needs may already be difficult or they still lack it because they don't have a fixed income, they have to work to be able to have a stable income, but in my opinion if Currently looking for work is not easy, right? However, I think we should be able to have a job that generates income, because if we don't currently have a job, I think it will be very difficult to survive.

It's true that what you said is that the main focus is that they must be able to generate a steady and clear income, because that way they can meet their needs and maybe they can invest a certain amount, if it is still difficult to meet basic needs, it will be more difficult to invest, p. This needs to be paid attention to, because many people still don't have a job or a steady income.

That will only happen if one changes his perspective about finances, that there is more to save than to overspend. When I say save, that means save for your investment, save for your emergency funds and save for the future by avoiding unnecessary expenses and focus on what are necessary.

If you follow this kind of mindset, I’m sure a lot of us will gain financial success this year which I think is very possible with patience and determination.

That's the problem and people need to think about a fixed income structure when they want to see their finances become much more stable. If they cannot meet their daily needs well then how can they possibly talk further about investment. The main focus must be on how a person can generate a steady income and then try to invest responsibly with a portion that can be adjusted to existing income.

We are talking about investment in the crypto space because talking about investment now people will shift their focus to bitcoin. If we develop a business, we should look at our skills to see whether we are able to run it or not because if we are forced to run a business that we are not good at, it will be difficult to develop. When faced with a lack of money, it is necessary to look at how we can take advantage of the existing possibilities because selling assets will be a little riskier.

First of all, I'm sorry for what you've been through recently, when something attacks the people we love, it's a very heavy blow for sure, sometimes if I can choose I personally would rather feel something than the people I love.
Actually from what you experienced, you have done your best, you have completed the first and indeed unexpected things can come even though we have just felt it. Events like this seem to come very quickly.
Although not always, but I as much as possible to divide my income into 2 parts, emergency fund, savings, investment. For me, these three are different things and are very useful for certain situations.
In theory, I would use the emergency fund then the savings fund. This is just an anticipation, if I have to spend it all at once because of something urgent and then the next problem comes, I will probably do everything possible to solve it.

But at least you should consider that half bread is better than none. And also, it’s not like you won’t be able to choose which need to solve, you’ll prioritize properly. In this your case, it’s not about you having emergency fund because you had it. It’s just life. Imagine if you didn’t have the emergency funds to even resolve the first challenge? To answer your question, there’s nothing you can do because we don’t control these events. Just hope for the best yet prepare for the worst.

Unfortunately, there are also people like me who did have something urgent, and that emergency fund was used, and now they have no money in the emergency fund. The worst thing about the emergency fund is that if you have two things in a row, that means you spend it on the first one, and now you have nothing for the second one.

I had something similar just very very recently, let's not put details in because I do not like that, but lets just say, someone I loved had to have a surgery, and I used a bit of my money, and my boss was kind enough to help me too, and that trouble has gone by, it's healed now, we are doing great now, there is no problem there, however after that one another person I care about got sick and this time even bigger issue, and yet I have nearly no money at all, what am I suppose to do when it comes back to back? That's the real trouble.

Good one. However, the chances of these things happening could really be small… especially if you are not a business and operate just as regular as everyone else. But people who do business that involves a lot of money really need to have a second account because anything can happen, it’s for big amounts that the bank can suspect you for money laundering or anything that could tear down your account (guilty or not).

everything you wrote in the list is the right thing, and all these mistakes don't only happen to people in previous years but in almost every year there will continue to be people who make mistakes like that;
- For those who don't have emergency funds, it's best to have them immediately
- For those who don't have an investment yet, it's best to have one immediately
- For those who are wasteful and like to waste money, you should immediately change that behavior
- For those who are not yet good at tracking daily - weekly - monthly expenses, you should start trying to do that

in this new year, let us change our nature from being unable to manage money well, to being someone who is able to manage money well.

Yeah you got some point mate. The fact that we have different strategies in making money on something we do but we all know that some strategies might work or not on other people as well. Some smart people also did something like improvising other peoples strategy to suit their taste and make it work better than the other.

And we're not all the same that we're open to investing. While us here, obviously we're all investors and we understand the risk that we take. We can't just dictate that to the other people that they should also invest just as we because one can say that they're afraid to invest and they can't take it on their appetites. Then some might say that they're inspired but never have followed and obeyed what we've said, some are like speculators and they're the ones that actually do the same thing as us and silently investing.

Obviously the advice in the OP's post is directed to people who at least have any regular income allowing them to survive and have a little surplus on the top.
If one doesn't earn enough to meet daily needs, he should be focusing on finding a steady income in the first place and worry about all other things later.


By all means, investing in own business or investing in own qualifications/skills that will help you increase your earnings is also investing. And even if you're short of money, you could still invest your time (aka your most valuable asset) to learn something useful.

Usually, Emergency Funds shouldn't be easily accessible. I have an app where I do more of my savings sometimes (not long-term) in that app, I can only access my funds at least 24 hours upon request and not immediately. So something like that could really help.

And then again, I wouldn't really recommend having your emergency fund in fiat or your local bank, especially when it's long-term, of course emergency funds are meant to be long-term. My point is that having your emergency fund in local banks or fiat exposes you to a few things, your money may be safe there until you need it but it's never safe from inflation, inflation can periodically disvalue that fund.

Those who don't keep emergency fund with themselves are those who don't have any responsibility so when they become a responsible person then there is a possibility that he will think about all the activities, expenses as well as about urgent needs. If you are a wealthy person still you will need money for urgent work because all the time the situation are not same.

Investment cannot be used as a emergency fund but for retired individuals it will help alot to provide an opportunity to earn monthly income. Investment and emergency funds are two different things because for urgent work we cannot take out our investment fund because the situation of market are not always alike. Same is the case that we cannot use emergency fund for investment as we know that life is unpredictable and all situations can altered anytime.

You are right, it is important to be aware of our spending and our ability to manage our funds wisely in order to achieve financial success. And discipline in managing finances will help build strong foundational habits for investment and growing wealth.

This all boils down as to how much you're spending and how much you're earning, not having an emergency fund is a poor man's thing and there's a lot of poor men out there so that's such an insensitive shit to say that everyone needs an emergency fund. Again, not everyone has the extra money to spare when it comes to investing and so they can't do this because they have a hard time already just living by and surviving daily.

The overspending I can agree that it's a problem and a mistake that needs to be corrected as quickly as possible because overspending disguises itself as if you really need that thing so you go above and beyond in your spending which ends up with you having to make a lot more financial mistakes like bad loans. The last one I can definitely agree with that, if you actually do that tracking of your expenses, you can easily solve that overspending issue that you're having.

its worth noting, that its best to try to set up a second account with a different bank for the emergency funds for these reasons:

1. if main income accounts bank freezes the account they also freeze accounts associated with account holder they hold.
2. if main income accounts bank has a internal error problem or does a bank run.
3. if bank wants to close account spontaneously, access to funds can be delayed from that bank

so by having spare funds with a different bank increases success of having money available in an emergency

I agree with what you've listed especially for emergency funds. People often disregard this so when emergency occurs, it's hard for them to find funds. Since it's emergency, we never know when we'll be needing money so it's better to always have one. One great example is the pandemic. We never really expected the lockdowns will last longer so people who have no emergency funds struggled looking for money to use during those times.

Also, I think tracking expenses is a great thing. Tho I don't really do this since I'm not that organized but it could be very efficient if you really want to closely monitor the outflow and inflow of your money.

True, but unfortunately I see most people today are more concerned with lifestyle than simplicity that can make them feel comfortable in life by only buying something that is needed and there is no budget allocation for something that is not useful or just for style. It is very clear that in any case management will always be the main and most important thing for a balance especially when it comes to finances.

On the other hand, in my opinion, the problem is that people today are always fooled by the name of needs and wants, almost always confused because of the difficulty of distinguishing, such as buying something that they think is a necessity of life when it is nothing more than a desire and does not have any benefits in the long run, one of the reasons is that environmental factors are quite influential, such as maybe if they have an environment that always lives glamorously such as joining some rich people but they themselves are at an intermediate level in financial terms then obviously budget allocations that are actually not needed or not really needed can occur, such as maybe buying an Iphone just to keep up with the style of their friends who basically they can't afford to spend money on it, as a result it can really disrupt their finances and lose balance for the real needs of life.