Easy Come. Easy Go. Why some people can’t hang on to money & How It Affects Your Exam Preparation. (part1 of 2)

Three years ago, Dayo Oni won a sport bet (Naira bet) worth N5.5 million. Can you belief that Dayo have blown all his money and now survives on tricycle “keke napep” which he uses as public transport system?

We’ve all heard about bet or lottery winners going from rolling in dough to being dead broke again. I recently read that 70 % of lottery winners lose or spend all of their money in five years or less. But it’s not just lottery winners that can’t hang on to their money.

There are people who seem to hit financial problems again and again. They get in a lot of debt, pay it off and somehow end up in major debt again.

Or you see the person who has an excellent start to a new opportunity, but then it suddenly heads south.

Why does this happen? Is it just bad luck?

The good news is that it has nothing to do with luck.

Today I’ll discuss 4 reasons why people can’t hold onto money .

No spending plan: Without a plan or financial goals, you’re headed down the road to digging yourself deeper into debt. A spending plan establishes goals and principles. If your goal is to save N1,000,000 for the next 5years, then you need to have a spending and saving plan.

Keeping up with everyone else. Your neighbor just pulled into his driveway with a new Ford Mustang, and you immediately think about buying the new Infiniti luxury sedan. That’s what we know as keeping up with the “Bigman”. But it doesn’t stop there. Your sister tells you she just picked up the latest purse in the Louis Vuitton spring line, and you think about that Chloe bag you didn’t really want until now.

Lack of discipline. Just as you begin to think about purchasing a new car because your neighbor recently bought one, hopefully you have enough restraint to consider the impact on your spending plan.

Buying a new car every few years. Remember the car your neighbor bought? Well, let’s just say you’re about six months from paying off your current vehicle, but you’ve now convinced yourself that it’s time to get a new car because “I deserve it.” This is a classic reason why so many people dig in and remain in debt.

Poor Money Management: Most of the time, poor budgeting invokes debt. You must have a monthly budget. Without a proper budget, you will not be able to track your expenses. If you write down your spending for an entire month you can see exactly where you money ends up. This is the best way to learn where you can cut some unnecessary expenses and help yourself avoid debt.

See you next time……. as we discuss

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Tayo  Stephen ACA

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