5 FINANCIAL MISTAKES YOU MUST AVOID IN 2023

If you want to build long-lasting wealth in 2023, there are certain financial mistakes you must avoid.

Over the years, I’ve counseled and coached a lot of people, and one recurring thing I’ve seen is that many people lack financial intelligence.

People will go to any lengths to make money but won’t do all that is necessary to get the information to keep it.

Financial intelligence is very crucial in the life of anyone who wants to become financially free.

That is why anyone you see today who is genuinely wealthy has and still is investing a lot in their financial education.

Those who have been able to build transgenerational wealth are those who took their financial education more seriously than others.

The difference between a wealthy person and a poor man is the level of financial education that they have.

We live in a volatile world, a world where there are economic downturns in every corner, and the best way to secure your future is to be financially intelligent.

In this blog post, I aim to open your eyes to the reality of financial decisions and let you know some mistakes you must avoid in 2023 if you want to become financially free.

1. failure to create a budget

Budgeting is simply creating a plan to spend your money.

It shows you where your money is going and how you can balance your expenses and income.

Contrary to what many people believe, budgeting does not restrain you from spending, instead, it informs you in advance whether you will have enough money to do the things you would love to do.

When you create a budget, you are able to spend money only on things that are necessary for your well-being.

It gives you a good idea of what money comes into your life and where/how that money leaves your hands.

Living with a budget makes it more difficult to navigate unexpected expenses and achieve your financial goals.

When should you create a budget?

Don’t start creating a budget when money has entered your hands and you’re halfway through it.

The best time to create a budget is before money enters your hands, this way, you’ll be more objective and careful with your plans.

There’s a proverb that says “Don’t count your chickens before they hatch”

Many people believe this to mean that when they plan for the money that hasn’t reached their hands, they’ll be committing a kind of error.

But what this proverb really means is that unless you are sure that you are going to receive something, don’t depend totally on it.

So I’d advise you to start creating a plan for the money you are working so hard to receive.

If you want to become financially free in 2023, you must learn to create a budget.

2. failing to track your expenses

One major financial mistake you must avoid in 2023 is failing to track every expense.

I have a record of every single financial transaction that I make.

Whether that is receiving money or giving out money.

This simple habit has given me a big picture of where my money is going.

Recording your expenses plays a very important role in your journey to becoming financially free.

Why is it important to record your expenses?

Tracking your expenses gives you a clear picture of where your money is going and you can ensure that the money is wisely spent.

If you start tracking down every single amount of money that leaves your hands, you’ll find out that over a period of your life, you’ve handled money that you didn’t think you could have.

If you ever find yourself in debt, you’ll be able to understand how you got there and then create a plan to get you out of it as quickly as possible.

Tracking your expenses is an essential activity that you should ideally do every day throughout the month, it holds you accountable for your finances.

3. not knowing how to use/manage debt

You’ve probably gotten into a huge debt at some point in your life.

In fact, it’s either you just got out of debt or you’re in one at the moment.

The reason you keep coming in and out of debt is because you do not know how to leverage debt.

You see, there are 2 kinds of debt, there’s Good Debt and there’s Bad Debt.

Good debt is any kind of debt that you use as leverage to make more money or more financial investments.

When you borrow money and put it into an investment that yields more than double the origianl debt, you’ve leveraged debt.

Take for instance, you take a loan at 20% interest per annum and you invest it into an asset that gives you a return of between 30 to 300% per annum.

What have you done? You have simply leveraged debt to create wealth.

This kind of debt is what millionaires around the world use to build on top of their wealth.

But many people are not familiar with this kind of debt, they are only familiar with bad debt, which is borrowing money to spend on liabilities.

It has put millions of people into financial hardships because all they do is to spend on consumables only.

Again, investing in your financial education is the key to getting out of debt and joining the one percent.

If you want to be financially free, you must understand the difference between these two.

Get the School of Money Book if you want to learn more about this.

3. falling for fads/scammers

As long as I have been living, there have been different schemes, fads, and shiny things people have set up to dupe other people.

One of the major reasons why people are poor today is because they have fallen and are still falling for these schemes.

I was beyond shocked when I saw people investing in Ponzi schemes but would not invest in real estate.

I was appalled to see people gamble away their life savings, their children’s school fees, etc. all in the name of getting returns quickly.

Even after MMM came and left, many people were still chasing after investments with ridiculous returns.

In 2023, if you want to become financially free, you must be wise in all your financial dealings.

Don’t fall for Ponzi schemes, understand that not all that glitters is gold.

Invest only in vehicles that have stood the test of time, like real estate, the money market, business, etc.

4. Not setting aside an emergency fund

Emergencies can happen at any time, you could fall ill or need to take care of a loved one.

You have to be financially prepared for emergencies.

I know you are probably saying “God forbid, it’s not my portion” but that’s just the reality of life.

Challenges are part of life and they can show up when we least expect them to.

Do you have money saved up to deal with any emergency?

Failing to set money aside for ‘Emergency Funds’ is one mistake you must avoid in 2023.

Those who failed to do so have had to borrow money to deal with it and as a result, have been plunged into the bottomless pit of debt.

Set aside a percentage of your earnings and put them into an emergency funds account.

This will save you a lot of headaches when any challenge rears its head.

5. not having multiple streams of income

When God began to open me up to the idea of having multiple streams of income, He used the ocean as a perfect example.

The ocean (and the sea) never run dry because it receives water from many rivers and streams.

When dry seasons come, rivers, ponds, lakes, streams, and other bodies of water tend to dry up, but nowhere in the world will you ever see the ocean dry up.

This is because it receives from many sources and even when these sources dry up, it still remains until they start flowing back again.

It is imperative that anyone who desires to become wealthy should have multiple streams or sources of income.

While some streams will dry up in certain seasons, some won’t and so you can continue to live in affluence.

Why should you have multiple streams of income? Well, for one, it increases your earning potential.

When you have more than one source of income, you earn more money and increase your revenue.

Multiple streams of income are the secret to unending wealth.

If you want to learn the strategies for creating multiple streams of income, you should definitely check out my best-selling book, the School of Money.

important!

One thing is necessary if you want to live a financially free life in 2023 and beyond, and that is getting the right knowledge.

This includes knowing how to save, manage and multiply money, but most especially, knowing how to make money work for you.

There’s one vehicle of wealth creation that can help you get to the level where money begins to work for you, and that is real estate.

In the coming months, I’ll be teaching a series of masterclasses on how to invest in real estate from wherever you are and become a multiple figures earner in a few months.

The Global Real Estate Executive Bootcamp (GREEB) is a week-long event that is set to host some of the brightest minds in real estate in Nigeria and the diaspora.

You’ll get access to the trade secrets of these people, including myself. You’ll literally be standing on our shoulders.

If you would like to register for the event, check here and also follow me on Instagram.