Making use of money can be done in two different ways and that can be Wisely or foolishly.
The wiser you plan your money, the farther you move from poverty or brokenness. Spending money on the right things and at the right time matters a lot. Below I will be putting you through something you should never do with the money if you must keep your financial buoyancy.
Let’s get started!
1. Don’t Spend It
Today, spending money is very easy. Online, in our malls, even in our local markets, it is getting easier to spend. The only thing you need is to have an ATM card, the rest will be history.
We are awash with ads online urging us that we are a click away to everything we ever wanted.
Retailers have figured out ways to make us spend more money. They have managed to convince us through store designs and decorations.
Now spending is no longer a way of satisfying our needs but it has also become a way of having fun.
Shopping is the fancy word for it.
Even the banks that traditionally should protect your savings now urges you to take that magical vacation you deserve.
All this means that we have all possible reasons to spend every penny that comes into our pocket.
When you listen to them and spend that way, soon your landlord will start knocking on your door because you can’t even pay your rent.
There is no point in saving money and then spending it again without that savings making any meaningful impact on your bank.
You should have a plan for saving and chief of those plans must be to bring in more money.
2. Don’t Loan it out
Stories of banks are legendary. It not hard these days to find families that have lost properties to banks because they could not pay back what they borrowed from these banks.
And it is not hard to find people that have a thing or two for banks because of lost properties.
Money matters are always emotionally charged and if you were put in the shoes of these bankers, you might do worse.
It doesn’t mean that you are a bad person. You are not. Just that sometimes, in those moments it feels as if the money is haunting you.
You will go to bed at night and wonder how on earth you are going to let all that money go. Then when you wake up in the morning, you are charged to get your money back by all means. Especially when you think of what the money can do for you.
You are not a professional that at least gets something when he doesn’t get his money back. So don’t lend your savings out.
There is always a chance that you might not get it back.
Yes, they are family, they are friends, they are friends of a friend. But you don’t know their ability to pay you back. So don’t take the risk.
Think of why you started the savings in the first place and be true to it.
3. Don’t Invest in what you don’t understand
My dear, run with your money when a business you don’t know about is introduced to you. Tell them that your God is bigger than them.
You cannot afford to gamble with your savings.
I know of someone who would brag that the money he spends on betting every weekend are investments. One day, one will click, he would say.
If you can afford extra change to play with, have fun, but leave your savings alone.
Do not put it in any get rich quick scheme, it will not be you who get rich.
I think there is no better example than the recent activities of Ponzi schemes.
4. Don’t Give it out
Generosity runs deep in some of us.
We want to contribute to society. We want to make a lasting impact and leave a legacy.
If you are reading this, I assume you are young. Leaving a legacy is not only for the elderly.
You too can make an impact. But if you are not yet where you want to be financially, why don’t you give more of your time?
Build your wealth first and then you can contribute to society. That way, you can make more impact.
5. Don’t Leave it for so long in a savings account
Like I mentioned before about people whose passion is to save. They fall victim to this.
They save forever and do absolutely nothing with their savings. And they keep it secret.
If you find out about the savings one way or the other and mention it to them to spend a little from the money. They will look at you as if you have said a taboo.
The savings are good. But leaving your money in a savings account for years without doing the right thing with the money is one of the worst things you can do with your money.
This is especially true in our country where banks pay very low interest on savings and where prices are going through the roof on a daily basis.
The real value of 100,000 in five-year time must have gone down because of rising prices.
So beware of these above-listed things and don’t risk the little you have to unreasonable ventures.