 Financial decision making is a skill you get better at over time so don't be surprised if you make some of your biggest money mistakes in your things and 20s. Being good at managing your money truly is an art that anyone can master even the faintest of heart. It all comes down to getting into good money saving habits that over time will hopefully turn into a nice stash of savings in your bank account. According to life hack blogs, you can start by stepping back and going over your bank statement or have an app categorize them for you. Divide them up into sections such as fast food, bank fees, bills etc. When you actually take a look at what you spend and have an actual dollar amount on things, it will open your eyes after you have seen where you spend your money. It will be the best to set a budget. In this video, I'm going to share with you 13 money mistakes how to be good with money. If you're new here, I'm sure it would benefit you so much if you subscribe to our channel for more awesome videos like this. But to get there, you need to know what the most common money mistakes are and how to avoid them so you don't end up failing at your first hurdle. The mistakes are as follows. 1. Never spend more than what you earn. We shouldn't allow your spending to be equal to what you earn. Paying to respect this money principle will lead you into being soaked in debts. And once you're soaked in debt, chances are high that the weight of the debt keeps increasing. You'll find yourself living a life of creating new debts by borrowing to pay off all debts. Spending more than what you earn leaves you with nothing to save. That means for every unforeseen emergency, you'll get into debts. A life of debt is one of the most horrible lives that you can ever imagine. Debt gives births to bitterness, sadness, anger, stress and a mind that is never at peace. That is why serious people who want to become rich strive for a debt-free life. Don't misunderstand me. Debt is something good when it is used properly. People have taken out loans to fund their education and even hospital bills. Taking a loan can actually empower you but the reason why you take one out matters a lot. Don't take a loan to fund a party. That means that postpone the party until you can pay for it. Don't take a loan to buy a house because every day you pay for the loan, you will probably not be happy in the house. Unless your job is such that can pay the installments comfortably, don't bother. 2. Never borrow money that accrues interest to get into a business venture. In simple terms, avoid borrowing money to start a business hoping that it will make sufficient profits to pay back the borrowed money plus its interest. This mistake is mostly commuted by newbies who are trying to make their way into the business world. A mature businessman or woman knows the risks that are surrounding startups and won't afford to borrow money for such. It's no surprise to hear that about 80% of business startups fail. Better is someone who borrows to expand a business that has proven itself profitable than he who borrows to try. A startup is not different from a trial. You should use your own money for startup and observe the evolution of the business before thinking of borrowing. This is very important if you want to have peace of mind during your youth. Debt are serious issues and can't be forgiven simply because one doesn't have the money. The more debt you have, the more worries you will have. It is better to save over time and start up your own business or, in the alternative, reach the idea out of formal event and get investors to invest in your company's equity. Filly, never spend money you have received. Avoid promising someone money based on a money promise you've received from another person. This will prevent you from getting into trouble or losing credibility before your loved ones. If you are serious about maintaining a good reputation, then you should also avoid purchasing items based on promised money. Be patient till the money arrives in your hands before you start to spend it. This is a case of counting your eggs before they are hatched. Just like you advised against taking out a loan to fund a business you haven't tested, you shouldn't promise someone money you haven't seen. 4. Realistic business ideas are more than money. Whenever you encounter a successful or wealthy person in life, avoid asking for money. You should rather ask for ideas on how to grow and maintain money. He or she can decide to give you some money but do not allow money to be your primary objective. The money they will give you will soon finish but if they show you how to make the money, chances are high that you will always have money and not have to beg or rely on others. Imagine meeting Bill Gates for the first time at a conference. What would you ask him? If you are thinking money, then you may not be ready to actually grow your finances substantially. 5. Never start spending with the hopes of saving what will remain. This is because what usually remains is zero. You can be sure that as long as there is money to spend, there will always be things to spend on. The things to spend on will not limit themselves without inciting their relatives so that you can spend even more than what you have planned to spend. Each time we have ourselves with no money to spend, we naturally find a way of doing without it. Such can be applied through automated monthly savings. With such, the percentage you have assigned for savings is removed before your wages enters your hands. In this way, you won't have to worry about spending all your money. This is very important. Automate your savings today and not tomorrow. Also, put an amount that is far above 10% of your income. The more you save, the better you can plan around your finances. 6. Instead of keeping your seed, step out and plant it. Keeping your seed instead of planting it is one of the 13 mistakes you must avoid if you want to become rich. Saving a loan is not enough. It is difficult to enjoy financial freedom by just saving. Saving a loan wouldn't permit you to enjoy a good lifestyle after your retirement. Investments are just like seeds and it is only after planting them that a person can expect more. Note that inflation can come and make a way with the true value of your saved money. In such situations, those who had invested will still be able to cope whereas those who had not will find it difficult. By investment here, we are not necessarily pointing to business. There are investment companies that can help maintain and grow your money in many legit ways. 7. Never lend an amount of money that you are not willing to lose to someone. Lend what you know in your mind that if the person fails to pay, you won't die. Lend an amount that won't even haunt your relationship with the person because he or she is unable to pay you back the money they owe. If you realize that the person's failure to pay back the money will make you hate their entire village, it's better to advise them to borrow from the bank. Don't allow bad friends to guilt-strip you into lending them money they have no intention of repaying. 8. Avoid unnecessary spending, especially on things that you can do well without. Whenever you want to make a purchase, ask yourself what will happen if you don't purchase it. If you can do well without it, then just move away and save your money for better purposes. 9. Avoid spending your signature to grant someone's loan. This applies especially when you are not willing to pay it should they fail to do so. That is, act as a guarantor for someone's loan only when you are ready and willing to pay it if they fail to do so on the due date. 10. Avoid keeping huge sums of money at easy reach when you don't intend to use. In the short term, a good example to avoid is that of working with $1,000 in your wallet when you intend to spend just $100. Always remember that whenever there is money to spend, things to spend on will come from all angles. When money is at easy reach, chances are high that you will quickly and easily spend it without realizing it. 11. Avoid spending on luxurious items that you can do without. If you are serious about becoming rich, you pay attention to how you spend your money. When you are still struggling to build your financial life, stay away from luxurious items and go for your substitutes at the lowest price. It is not about impressing your friends but securing your financial future. 12. Make sure to try and get discounts during purchases at the month. Avoid paying an amount of money for something that is not the minimum amount that you can get that same value for. Make sure that each item you purchase is coming at the lowest price possible. 13. Don't spend for the now. Think about tomorrow too. Many people make the mistake of thinking about the long-term and forgetting the short-term or thinking about the short-term and forgetting the long-term. Learn to put everything in the right place without making decisions that will hot your present or future. Carefully analyze every situation and take decisions that will benefit you in the long-term. While prioritizing long-term decisions, do not forget the present.