3 Money Mistakes Wealthy People Don’t Make

By Susan Gitonga

Money is the root of all evil. It is the reason why nations fight against each other. It is the reason why politicians will go to great lengths to spread lies about their opponents. It is also the reason why the young thugs from Kayole were a nightmare to many Nairobians.

It is the reason why we get up very early to go to work, and do jobs  we do not necessarily like. That said, money is important in order for you to survive even though it is not the Sustainer of life, God is.

So, in this article, I’d like to share with you;

3 Money Mistakes Wealthy  People Don’t Make

1.They do not spend everything they earn

A colleague of mine was sharing with me how she had a schoolmate who would spend all his HELB money within a week or so in parties and buying alcohol.

Wealthy people however do not squander all their money. In fact, most wealthy people live below their means and are always looking for ways to cut down expenses and live a cheaper life. But most people will receive money in the accounts,  withdraw ¾ of it and save ¼. According to Financial experts, you should save close to half of your money if not ¾.

Young people of today, better known as millenials are taking a bit too long to realize that they need to save for the future. They will soon be getting married and starting families. They will need to pay school fees, buy homes, and also take care of their parents, but they are still spending all their money without considering these factors.

That said, most wealthy people spend less and save more by setting saving targets for themselves which they work hard to reach.

2. They don’t make emotional, financial decisions

Making emotional financial decisions is very risky and can affect your Bank account. When someone goes through a breakup for example, they are usually very emotionally vulnerable and will do anything in order to fill the emptiness they are feeling. In most scenarios, they call their friends and invite them for coffee or lunch at very expensive restaurants  to talk about what happened.

There is nothing wrong with catching up with a friend, but never let it be out of emotions. You must learn to say no, especially when your finances are concerned.

Peer pressure is very real even among older people for where you hear that your friends are planning to go for a trip to Dubai for example, and they are inviting you to join them.

It’s very easy to think about all the fun and experiences you will miss, and end up making the decision to pay for the trip,whereas you know that you don’t have extra money to spend on trips because you are paying for two of your children’s University fee.

Therefore, always make very sober financial decisions and don’t act on impulse.Wealthy people are very strict on their personal finances and make very informed and wise money decisions.

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3.They Don’t Put All Their Eggs In One Basket

Ecclesiastes 11:2 “Put your investments in several places – many places even – because you never know what kind of bad luck you are going to have in this world.”

Wealthy people have many streams of income and do not depend on one source of income, because of the uncertainties of life.

Most people, however, depend on the 8-5 job and if they woke up to the news that they were going to get fired, they would go into depression.

A wise person should have many side hustles and sources of income, if they want to be wealthy.

Safaricom for example, has very many services such as MPesa, Mkopa, Mshwari and Internet Services among many other investments.

Want to be great? Learn from the great.

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Susan is a Communications Officer at Career Point Kenya. Email: susan@www.careerpointkenya.co.ke