A major threat to wealth creation is typically viewed as the state of the economy and currency volatility. Even though these events can create uncertainty, it is important to be mindful of larger enemies than these. If you avoid these enemies of wealth, you will steer clear of financial stress, regardless of where you are on your wealth journey.
Almost all of our debt is incurred through the purchase of depreciating assets. Stop borrowing money to maintain a lifestyle that you can’t really afford.
If you’re in debt, focus on paying it off as quickly as possible. If you’re not, avoid it like the plague. If you can’t afford it, don’t borrow to buy it.
In 2016, A bag of rice ‘sold for about N7,000. Today it sells for as much as N40,000. Inflation is also known as the silent killer. Over time, you will be able to buy less with your funds if you leave them in a savings account.
To beat this enemy, consider investing in assets, real estate and stable foreign currencies to outperform inflation.
If Covid 19 taught us anything, it’s to prepare for emergencies. Plan ahead so that you can cover financial responsibilities associated with unforeseen events.
An emergency fund helps you stay afloat during times of financial crisis. Build your emergency fund to cover 3-6 months of your expenses to avoid financial stress.
Without proper planning & discipline, it is impossible to build wealth. Sometimes we know the right things to do, but we fail to act on them. Not having a budget, impulse buying, spending to impress, touching your savings and investments are all bad financial habits.
Learn to make smart choices with your resources and follow through with them.
5. Investment mistakes
Don’t fall victim to investment scams and poor investment planning. Ponzi schemes can hurt your financial health and emotionally damage you.
When investing, don’t let your emotions guide you. Instead, learn from the mistakes of previous investors and invest in only what you understand.
There are several enemies of money that can hinder or suppress your wealth. When you’re not vigilant and intentional about your finances, they can quickly reduce, or even take all of your wealth.
The more you avoid these enemies of wealth, the closer you will come to be financially free. Build your wealth safely when you invest with OVERWOOD today. Visit www.overwood.ng to get started.
“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.”
— Edmund Burke