Stupid is how stupid does
If you have seen the movie Forrest Gump, you would remember that line where the character played by Tom Hanks made the statement quoted above. So, if you absolutely hate being stupid, you may want to pay more than the usual attention to these mistakes as well as their solutions too. Shall we?
1. Spending On Clothes You Will Not Wear
Most people buy more things than they use, especially when it comes to clothes. Though, most love the feeling of buying clothes, but the truth is, the average person wears the same 20 percent of clothes owned 80 percent of the time, and the rest is wasted.
The solution is to invest in high-quality clothes and wear them out. If you are going to buy clothing or fashion accessories, make it something really good that’s going to be timeless, that you are going to spend a lot of money on and spend a lot of time thinking about, and that you are actually going to use.
Save your money and put it toward quality items and be very selective. It will pay off in the long run. When you eventually burn them out, throw them out or give them to someone in need.
2. Not Knowing How Much It Costs You To Live Monthly
Most people don’t know what it costs them to live every 30 days, and that’s living on the edge, says Kevin O’Leary.
To solve this, write down everything. All of your habits of spending. All of your income. All of the extra ways you make money. Capture it down to the last kobo with pen and paper. Then do what needs doing — budget accordingly and stick to it.
3. Spending More Than You Make
Not knowing what’s coming in and what’s going out puts you at risk, in a state of never getting ahead, as you find that what you are spending is far more than what you are earning.
The remedy is pretty simple, though it requires discipline. Spend less and save more. Adjust your lifestyle because overspending will lead you to debt, which can become so expensive that it buries you.