The 8 Biggest Money Mistakes
Mistake No. 2
Not Controlling Spending Leaks
The reason why so many people have so much debt is because they dribble their money away in small, barely noticeable amounts. Like drops of water dribbling through the hole in the dike, the loss is hardly noticeable, but over time the hole in the dike gets bigger and bigger. By the time the water is gushing through, the damage is done. The same is true with spending leaks. It's a lot easier to plug a small hole than to ignore the drips and look over your shoulder later and see a huge tidal wave of water coming your way in the form of unmanageable debt. If you're ever going to accumulate wealth, you must control spending leaks!
Just 3 examples:
- It already starts with small things like your telephone bill. For instance, here in Germany the rates per minute have become extremely cheap. I can already get away with as little as 1.7 cents a minute for a call to the United States depending on what provider I use.
But! A false sense of security could become a big trap here. People tend to say: “Oh well, it’s so cheap, we can chat for an hour longer.” They then end up paying the same as before or even more. And that’s not the idea.
Take advantage of it being cheap and let it stay cheap! It’s only to your own advantage! - Does your Bank charge high fees? Move your account and go to a different bank!
- Suppose you normally buy your gasoline from a certain station. Then one day you notice a new station that sells gasoline for 5 cents cheaper. Change stations! Even 5 cents accumulates over time.
You see, it’s these little things that build up with time. A Dollar today, 2 Dollars tomorrow…
It all adds up towards the end of the year where you could’ve easily saved several hundred Dollars, often even thousands. Just think what you could do with these extra Dollars that you can save just by closing up those leaks!
Click here for Mistake No. 3: Not Setting Goals.
Yours in Successful Trading,
Ricky Schmidt
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