Avoid These 8 Money Mistakes on Your Way to Being Wealthy 61

Avoid These 8 Money Mistakes on Your Way to Being Wealthy

This is a guest post by Bill Brown. He’s part of the Marketing team of Auto Insurance group – a group of independent webmasters who are happy to share their experience and knowledge on online car insurance.

Lots of people make money mistakes trying to become wealthy. These can cost them their fortune, and they’ll be back at square one.

Even if these mistakes are rookie ones, considering human nature when we start acquiring larger and larger sums of money, they can be avoided. If you haven’t been making these money mistakes – you’re one of the few, but if you have – here are ways you can avoid making them!

1. Spending more than you earn.

You just got a new job or are starting your own business and money is starting to flow into your bank account. You are now earning enough money to live through the month and have extra leftover cash which you can use in various ways. The only problem is that you’re making more money than ever before, and you think you can spend it on whatever you want instantly. You start paying more and more while earning the same. After a while, you’ll notice that your bank balance is unusually low.

Try to avoid this situation by limiting the amount you spend each month – you don’t need to spend it all in an instant.

2. Relying on one income stream.

Most successful and wealthy people don’t rely on only one way to make money. If you have extra time to do some work for some extra cash – take the chance. This way, even if one of your income streams fails, you’ll have at least something to resort to until you get your main income stream back on track.

3. Trusting without proof.

Even if you think someone is very trustworthy by how they look – you should be cautious. People are often not what they appear to be, and they can take advantage of that fact.

For example, you want to get insurance for your automobile. Even if these insurance companies are often trustworthy, there are some that are frauds. It might be better to take the route of online auto insurance.

4. Investing in trends.

Trends change as time passes, and it’s not a smart idea investing in them. Sure, you might earn a big amount of money during the time a trend is popular, but once that changes, the popularity of that trend will most likely not be back, and you won’t earn any more money.

After all, you’ll end up losing money when that happens, and you surely don’t want that. So that’s another one of the money mistakes you want to avoid.

Related: 7 Things You’re Doing That Will Never Make You Rich

5. Not trying to increase your income.

You have a stable job, and your business has been making money since its inception. You are happy with how things stand and you’ve been making a constant amount of money.

Why would you want to stop here? Push for even more income, for even more sales, everything! Improve yourself and your business and watch as your bank account fills up. Don’t be content with what you have – always push for more!

6. Spending on things that make you even poorer.

Only buy things that you know will pay back/make your life easier. For example, if you buy a very expensive car or a huge house, and you don’t have enough income to maintain them, you’ll end up poor and bankrupt.

Related: The Only 10 Ways to Become Rich

7. Believing finances will fix themselves.

If you’re having a hard time with your business, don’t just sit around and expect things to fix themselves. Finances and businesses don’t work this way. You need to be constantly involved with everything you do if you expect to fix things and avoid money mistakes.

Related: Manage Your Money Like a Boss

8. Failing to obtain proper insurance.

Sure, it might be expensive to keep insurance over things, but ask yourself if it’s worth not being insured. If anything happens to you, your property, your business – you won’t get any money back for the damage. It’s better to be prepared and have nothing happen, than not be prepared and something bad happening.

So which of these money mistakes have you been making?

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Should You Buy an Ecommerce Business? 10

Should You Buy an Ecommerce Business?

If you have the funds to make an investment, but you are not sure which is the best option, a good idea would be investing in an ecommerce business. They represent the businesses of the future, and it is already a known fact that they are very profitable.

With an online business you can choose to build it yourself, but that is not what we are recommending. In our opinion, buying an ecommerce business comes with more advantages and in this article we will talk about some of them.

You won’t have to deal with the tough work.

The first days are the hardest when you decide to start a business by yourself.

First of all, you have to decide exactly what kind of products you want to sell and then find the suppliers for them. You need to create a quality customer service, come up with marketing strategies, develop the site, SEO, and many other things.

But when you buy an online business you won’t have to deal with any of these. A business that has been around for a while already has all these things and this means that you won’t have to deal with them. However, you should make sure that you do a little bit the research before you buy the site. You need to make sure that everything matches your requirements.

Successful business model.

Quitting While You're Ahead! Understanding the Limits of Natural Business Growth

When you are just getting started it is hard to tell whether your business will make it or not.

In some cases, it might even be complicated to come up with a strategy that will sell your products. Nevertheless, this problem does not occur when you are buying an online business.

In this situation, you already know that the business existed for a few years, which means that it generates enough revenue. It also means that the traffic and customers are established already so there is almost no risk.

However, before you buy a website you will need to make sure that the financials are accurate.

You can choose to buy a business from an online marketplace such as Exchange by Shopify. This way, data such as traffic and financial reports will be delivered by the platform, not the seller, so you will know for sure that they are 100% real.

Cross-sell potential.

If you already own an ecommerce business it might be a good move to buy another one. By getting another one you will gain access to additional customers, email addresses and traffic, which could be really helpful for you.

If you analyze the metrics of the business a bit you will be able to tell how to cross-sell existing products. Tools like shopping cart data and Google Analytics should help you determine customer behavior, including the returning rate and how many items per order are there.

Cross promotion between email lists could be a great marketing tool if it is used correctly, and even using “competitive” discount could be a way to make customers move between the two businesses.