Many people remain poor due to the various financial mistakes they make. Here are some of the mistakes you make that might prevent you from becoming rich.
1. Borrowing money to start a businessMany people borrow money to start different businesses. There are several factors that determine the success of a business, hence it’s not a guarantee that you will make profits on your first harvest. This makes it hard to run the business as well as pay the loan plus interest.2. Spending money you haven’t receivedJust because someone promised you money, doesn’t mean you go and buy goods on credit with the promise of paying for them later. Some deals backfire and this will only leave you in problems with your creditor who might decide to take some of your assets to cancel your debt.3. Spending money before savingMany people are used to spending their money and saving whatever remains. In most cases, there is nothing that remains after spending. Always ensure you save, then spend what remains.4. Borrow money whenever you meet wealthy peopleMost people only think about borrowing money whenever they meet wealthy people. This is wrong as you should always ask for ideas on how to get your own money. Let them teach you how to get money on your own.5. Lend money to people who will not pay you backJust because someone is your relative or friend doesn’t mean you should lend them money even when you know they won’t pay back. Lending someone money they won’t return will inconvenience you. Always ensure the people you lend money to pay you back in time.