10 Biggest Money Mantras To Keep In Mind

10 Biggest Money Mantras To Keep In Mind

“The Bad News is time flies; The Good news is You are the Pilot”- Michael Altschuler

You may not get the time back and similarly you may not get the opportunity to invest with the same timeline. I always believe and say that it is not the money lost, it is the time which you had lost which matters the most. More than Money, it is the time which is really needed to compound.

Most of the time people regret their money decisions later and they blame for their lack of knowledge. Below are some of the common money mistakes which you can avoid and gain Unlimited wealth in life,

  1. Not Saving & Spending
  2. Credit Cards
  3. Buying on EMI
  4. Spending above Means
  5. Lifestyle Expenses
  6. Investing based on Parents Advise
  7. Investing based on Friends Advise
  8. Home as an Asset
  9. Thinking Savings & Investment as Greek & Latin
  10. Not reaching out to an Advisor

Not Saving & Spending

The biggest money mantra to keep in mind for the rest of your life is,

Income – Savings = Expense

Your income may be less or high but you should follow this simple mantra. Save as much little as possible to create the habit of savings for yourself.

Every month once you save, only the left over should be spent as you wish.

Credit Cards

You can use credit cards and get maximum benefits out of it. Cash Back, Rewards, Dining benefits, Airport lounge benefits etc and above all 30-45 days of extra credit which you get to pay for the purchase you did.

The best way to use credit card is to pay the dues in full every month. Don’t pay just minimum due as you may start attracting interest which is the highest among all the loans. Interest rate on credit cards starts from 36% in a year to as high as 48%.

Buying an EMI

Buy things on EMI is to distribute your payments for next few months to years and in the mean time you can use the product/service.

You can buy consumer appliances, car, bike etc based on your buying capacity. When you are buying home, make sure you have the capacity to invest for your life too.

Most of the time people who buy home, stops buying any other things and also stops their investments. This will affect your retirement plan and also future important financial goals.

Be wise and make sure your total EMI should not be more than 35-40% of your Income.

Spending above Means

One of the clients had serious loans and got stuck in managing his monthly income & expenses. Everything started getting out of his hand when he bought his dream home which is above his means. In the same time, kids started growing and their school education costs started rising.

He started trying his hand in making more money through MLM schemes. He bought personal loan and credit card loan to pay to the MLM scheme. He went in search of making more money just to close his home loan at the earliest.

As per his words, the EMI problem started with MLM scheme loans.

It is difficult to understand the problem as you are the one deciding important money things. You always think emotionally and find logical reasons. Once you find logical reasons, you will be happy about your decisions.

Stop spending above means and Start increasing your net worth

Lifestyle Expenses

Lifestyle should be the last thing you should think while managing your money. Anything which provides comfort in your life can be considered as better lifestyle.

Mixie, Grinders, TV, Fridge, washing machine etc., were all considered as lifestyle and now it became a necessity.

Lifestyle is the primary reason for money leaks in your life unknowingly.

Save, Insure yourself, start investing and then look at lifestyle. Most of the time lifestyle comes at the expense of any sort of loan. Once you start from savings, you can automatically increase your lifestyle unknowingly.

Investing based on Parents Advise

It is good to listen to parents when it comes to family matters and other important decisions in your life. When it comes to money matters, it is you who have to decide.

You may spend more than your parents, you may have more aspirations in life, you may love gadgets etc and everything in this life needs money than ever before. You will start realizing only when you start earning in life.

The best thing to do to enjoy your life is to learn investing and do it by yourself.

Your parents would have lived the life without EMI, but your life may need loan. If it is paid on time, your life may start to grow exponentially.

My parents didn’t do equity investing, was afraid of taking loans and I did both. This gave me an opportunity to become a Financial advisor.

Investing based on Friends Advise

Everyone will have and is in need of a friend to share things in life.

Even with a friend, you may need to learn the basics of investing alone and you need to invest based on your life needs only.

What if your friend doesn’t invest in equities, you may also doesn’t have any knowledge on equities and you will always be against investing in equities.

What if your friend doesn’t save in his life, you may also be drifted towards more spending and enjoying life in the present moment.

Listen to your friends for any sort of life advise but when it comes to saving & Investing, it is best to learn and do it by yourself.

Home as an Asset

“Your House is not an asset” – Robert Kiyosaki

An Asset is something which keeps growing on its own. When you buy your own home and if you are living in it, then it cannot be called as an asset as you are not going to sell it. You also need to pay taxes and do maintenance for it.

Buying a home is always an emotional decision. You may say tax point of view, paying EMI instead of rental etc., and all these are logical stand points for your emotional decision which you had taken.

When you do the Return on Investment in real estate, you will realize. You can buy when you have sufficient money to pay the down payment and also when you can invest for all other financial goals as well.

Thinking Saving & Investment as Greek & Latin

I have heard both men and women saying this point. “I don’t understand this money management as it looks complete Greek & Latin to me”

Once you start earning your money, you should be able to identify the expenses which you are making unknowingly and knowingly. Only then you can grow your money and in your life.

“Don’t just work hard blindly, make your money too”

Not reaching out to an Advisor

When you are not well and especially during Covid, all of us reached out to Doctor. As this is life threatening and only, they can help us.

If you are in need of buying a car, you will go to the car distributor.

Similarly, when you are in need of managing money & investing, you should reach out to an advisor for proper advice.

Money saved in time and invested in correct products can help in growing your money exponentially. Else you need to work harder till your last breath.

Above are the common money mistakes which you can avoid in life to gain Unlimited wealth.

About the Author

Ganesan Thiru is an Author, Stock Market Profit coach, Research Analyst who has trained more than 10,000+ people in stock market investments & had done 90+ webinars in the last 15+ months He has 1800+ people in his Private Facebook group “Unlimited Wealth” & active in social media. His mission is to inspire one million people in getting financial freedom.

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