10 Money Mistakes Successful People Don’t Make

Managing money effectively is a key success skill. Successful people make the decision to become effective with money, many of them early in life. Like any area of life, it is important to educate yourself about the threats and challenges in the world. Taking the time to master a few key principles will pay off for years to come.

1. They don’t overspend; they live on less than they make.
2. They don’t fixate on price; they understand the importance of value.
3. They don’t waste cash on fees and interest; they know how to manage their banking
4. They don’t forget to adjust their finances after big changes in life.
5. They are not satisfied with a stagnant income; they look for ways to increase their income.
6. They don’t ignore financial statements.
7. They don’t take foolish risks in money.
8. They don’t pretend to understand everything when it comes to money.
9. They don’t transfer responsibility to experts.
10. They don’t let the pursuit of money overcome other values.

Living on less than you make is an essential money management skill. Some of the world’s wealthiest people have taken this principle to heart. For example, Sir John Templeton, a legendary investor who became a billionaire, saved 50% of his income even when he grew up with limited means. If that is more than you manage, don’t worry! You can reach financial success by saving 10-15% of your income.

Tip: Learning to live on less than you earn takes time. Start by looking for ways to save money: 55 Practical Ways To Save Money Efficiently.

The price you pay for an investment, a meal or piece of clothing is only part of the story. Successful people also think about the value of that good. For investments, they consider the prospects for the investment growing in the future. For personal items, they look for high quality products that will last. For example, a well made pair of business shoes may cost $200 or more but these shoes can last for years with proper care.

Tip: Buy high quality products that will last for a long time.

Carrying a balance on your credit card is incredibly expensive and sadly common. According to CNN, the average American household carried over $15,000 in credit card debt. Successful people also keep an eye on their bank fees–how much they pay for ATM use and other transactions. These fees are easy to avoid with planning once you understand how the system works. Simply reviewing your financial accounts for 5-10 minutes each month is all it takes to understand your fees.

Did you get married recently? Is your spouse referenced in your will? These are some of the points that financially successful people manage effectively. While you can automate a great deal of your finances, it is vital to make adjustments when your life and family circumstances change significantly. Sitting down by yourself (or with a financial expert) at least once a year to review your life and financial plan is an excellent way to stay on top of important changes.

Some people never ask for more money or simply settle for 1-3% increases. Unfortunately, that rate of income growth means you are simply standing still–inflation is slowly eating away at your purchasing power. Instead, successful people look for ways to earn more income. Increased income gives you more options for personal enjoyment, more capacity to give money, and a sense of security.

Successful people take daily action to increase their income. For example, they take a course to improve their skills or they contribute ideas to improve the productivity of their companies. They also know how to ask for more money.

Tip: Do yourself a favor and learn about high paying fields: earn $100,000 in project management and discover the highest paid jobs in America.

Reaching financial success requires some slow and steady habits. That includes forming a habit to monitor your financial statements. Successful people set a time each month–30 to 60 minutes–to review all of their financial accounts: investments, bank accounts, credit cards and more. When they detect an error or omission, they take immediate action.

Tip: Set a recurring reminder in your calendar each month to review your financial accounts.

Warren Buffet is often quoted as saying, “Rule number one is never lose money.” All investments carry some measure of risk (and therefore the potential to lose money). That said, successful people use two powerful tools to avoid losses. They understand the value of insurance to control risk (e.g. home, auto, and life insurance) and the importance of asset allocation.

Remember: If it sounds too good to be true (or if you don’t understand how it works), slow down and start asking plenty of questions.

The world is a vast and complex place–successful people know and deeply understand this truth. When it comes to money, there is a lot of information out there. That’s why successful people like Warren Buffet understand their limits and focus on their strengths.

Tip: Review your knowledge of money and investments. If you are just starting out, read one or two classic personal finance books. Or read 9 Can’t-Miss Secrets Behind Warren Buffett’s Wealth for more insights from one of the world’s most successful investors.

Successful people do seek out the advice of experts, yet they never yield responsibility. For example, it is reasonable to seek advice from a tax accountant in planning your financial affairs. However, successful people take the time to ask questions and evaluate the person providing advice to them.

Tip: When seeking advice from professionals like accountants and lawyers, ask questions and seek to have the advice explained to you. Otherwise, it is difficult to act on the advice.

Seeking financial success is a valid goal. Significant financial resources give you more options to give to causes you believe in. It also means improved access to technology, health care and leisure. However, successful people understand that financial success is only one aspect of a successful life. For example, neglecting health in the pursuit of money is a poor strategy.

Tip: Review your personal goals to see if you have a balance between financial goals, career goals, family goals and other activities.

People Who Become Highly Successful In Their 20s Have These 6 Mindsets In Common

Authority, influence, and solid income — these are labels which seem to define highly successful individuals. Achieving a higher status, fame, and abundant resources requires a certain mindset.

We have all seen or heard how certain people managed to accumulate great wealth, or simply how they became renowned individuals — but what was truly on their mind? The truth is that they had an idea on to improve something they loved, and possibly impress everyone else who shared the same interest. This brings up a different question – what is the true criteria for being highly successful? Is it having substantial revenue, or showing the world what you are good at? I believe that it is the latter, and that money and fame simply come with the territory.

The mindset must never be excluded from the equation, and as far as highly successful people are concerned, these are the mindsets they share.

1. They had a vision and made constant efforts to realize it – Mark Zuckerberg

We have all heard about or seen the movie The Social Network, so we have an idea about how Facebook came to be. Mark is a genius and he had a vision of an online place where people could easily socialize and stay in touch. Creating such a place was no easy task, but he knew success would bring a great deal of appreciation. He knew that it was a vision worth realizing.

If you are a creative visionary, and are skilled in a particular area, think hard about what you can do with your talents. Think about how to challenge and utilize them in a way that will bring a sense of achievement. Think about how you can do something which will improve the community as a whole — your efforts will not go unnoticed. Without such drive, you are reduced to only daydreaming about how to impress someone with the idea, rather than thinking about what it takes to make it a reality. It is not enough to have vision — you must also find a way to share it.

Never allow your governing passion to rust — hone and nourish the skills you have. Learn from others and come up with something new you can share with the world. This is how you can become highly successful and admired.

2. They allowed their suffering to drive their motivation — Elizabeth Holmes

Moments of great suffering and sadness make up our core memories. How we cope in these situations can reveal who we really are. For Elizabeth Holmes, it was the death of her uncle that drove her ambition to help humanity. She has come up with a device that is capable of monitoring one’s health and detecting disease before it fully develops. Now, she is one of the youngest billionaires in the world in the world, and her product can save lives.

This kind of mindset is important not only for success, but for life in general. The truth is that life is filled with hardships, and if we can’t endure, we lose. We become deeply insecure, apathetic, and depressed. However, if we work towards regaining control, then we come out scarred but stronger. If you ever find yourself in a situation that makes you feel helpless, don’t dwell on it — focus on what you can do to make things better.

3. They focused on what their audience wanted — Felix Arvid Ulf Kjellberg A.K.A. PewDiePie

Whenever someone gives you a dirty look and tells you that you are wasting your time playing video games, tell them about PewDiePie. The gaming industry is vast, not everyone can afford to play every game. Now, you can decide whether or not a game is worth the money before you buy. This is thanks to online streaming, or “Let’s Play” videos. It has become widely popular, but one person who explored this trend and managed to earn money, simply because he liked playing video games, was PewDiePie.

Truth be told, a lot of viewers find him immature, childish, and annoying. Still, Felix has a huge fanbase of subscribers, simply because he never failed to deliver what his initial audience wanted — insight about gaming and games in general. This kind of mindset is important for any entertainer and provider — you need to listen to the feedback of your audience in order to perfect your performance or services. Otherwise, someone else will exploit your weakness and steal your consumers, simply because you weren’t guided by the principles of good customer service.

In other words, if you are not doing something unique and complex, then you are not irreplaceable. You need work on forming a strong relationship of loyalty with your audience. After all, this is why PewDiePie is still very popular — he stayed loyal to his initial fan base.

4. They nourished their creativity — Jonathan Koon

Sometimes, being unique and original without the intention to change the world can do the trick. Jonathan Koon was just a teenager when he started nourishing his creativity for car fashion, and managed to accumulate a lot of money from it. Then, he became one of the suppliers of the show Pimp My Ride, which was a way to help out the community and gain publicity at the same time. Afterwards, he became a fashion designer, an industry he still works in today.

Jonathan had the commodity of a young age, and was fortunate enough to discover his talent during his youth. If you are good at something, devote at least one day per week to nourishing that creativity. This kind of mindset is important if you intend to become highly successful one day. It is true that we might not always have the time to practice what we are good at, but probably possible to find some free time during the weekend. This allows us to feel truly productive, filling us with positive energy. Without this kind of devotion, there is a risk that you will feel trapped and unfulfilled. After all, our hobbies are part of who we are — our own spark of individuality.

5. They never lost hope, instead working hard and remaining patient — Bruce Lee

“Highly successful” does not always imply wealth — very often it simply means being the best at something, and in this case it is martial arts. Bruce Lee is the undisputed champion when it comes to fighting techniques, and no matter how you look at it, this is sheer success. He showed the world the potential of the human body. One of his most memorable quotes was “Do not pray for an easy life, pray for the strength to endure a difficult one.”

The truth is, hard work and determination will get you through the most difficult times in your life. Struggles teach us to be resourceful and find a way out of a difficult situation. If you are going through a financial crisis, there is always a way to manage your finances — you can try doing something as a freelancer on numerous online platforms, you can do surveys online and get some money, you can give English lessons via Skype, among many other options. These are not permanent solutions, but they can help you manage.

The ability to efficiently cope during hard times is essential for highly successful people. It shows them what options are available, it helps when constructing contingency plans and exit strategies. Such a mindset will result in greater confidence and a sense of security. Without it, you’ll be constantly overwhelmed with the fear of losing your assets, which always results in health issues.

6. They challenged the popular beliefs and pushed the limits – Steve Jobs

When we are talking about highly successful people who made crucial decisions at a young age, Steve Jobs is an inevitable mention. He, Mark Zuckerberg, and Elizabeth Holmes exemplify the American Dream — just like the very inventor of the concept, Benjamin Franklin. The problem is that these situations make one into a role model, and idealizing others can have a negative impact on your mind. It is not uncommon to try mimicking the behavior of your paragons, thinking that it will somehow get you closer to their mindset. With that being said, it is quite clear that forsaking school and education is not a part of the mindset, it simply happened because Steve Jobs wanted to pursue his well-established vision.

When you decide to challenge established norms and try to go against the curve, make sure you have a well-supported plan. Deciding to become a drop-out and waiting for brilliance and fame to appear miraculously is a flawed belief. Think every major decision through. Weigh the pros and cons before you make major decisions — after all, recklessness is not a virtue. However, it is also important to mention that hesitation can result in regrets, so always strive to find a balance between the two.