Stella Dimoko Financial Literacy And The 7 Common Mistakes People Make..


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Tuesday, May 26, 2020

Financial Literacy And The 7 Common Mistakes People Make..

This is quite informative and very enlightening........

1. *Never Ever Lend Money Kept In Your Custody.*

There is a reason you were chosen to keep the money. People do not joke with their money and so they carefully choose who keeps corporate funds. Even thieves chose trusted people to keep their money.
When you betray the trust of people for whatsoever reason, you’ve soiled your name. You will lose social capital, which is a very important capital...

2. *Avoid Impulse and Unplanned Expenses.*

No budget, no spend. Spending without a budget is misappropriation. It doesn’t apply only to politicians. Have a budget & stay on it. This is the epitome of discipline.

3. *The Money Will Come*

You are old enough now to know that the money will not always come. Things happen. Have a buffer for emergencies. The difference between politicians & business people is that politicians do not understand why the money should not come. Business people work for money. They know that you have to make it happen. Stop planning your expense based on the generosity of strangers.

4. *Spending Based On Other People’s Purse*

Don’t plan your wedding with the hope that your uncle will foot the bill. It is setting yourself up for frustration. Uncle also has his money issues that you have no clue about. Don’t plan to fly business class with the hope that someone else will pay. You are not on welfare. Even if you are on welfare, please bring something to the table. That something is humility.

Responsible people spend within their means.

5. *Spending Money Before It Gets To You*

Things happen. Until money enters your account, don’t go and pick something with the hope that you will pay when you get the money. That habit will lead you into the red. How about if that money does not come at the end of the day? I try not to make promises to people based on expected money. I see people start piling up debt just because they got a new job. It will distort your balance sheet if you start that way. It never ends well.

6. *Money Sent Me On Errand*

I have seen people who were given a raise, upgrade their lifestyle in a heartbeat. Fly business class by the next day. Buy an expensive toy they never planned for. This is what happens to lottery winners. They pursue the appearance of wealth. The appearance of wealth is demonstrated when you get those things that make it look like you’ve arrived. It is the reason people take pictures sitting on cars; same reason musicians record videos in mansions and nice cars and private jets. 

Gang stars wear fur coats. Same when people buy TV/stereo set/gadgets with their first salary. Always allow the money to cool down. Take out time to plan what to do afterward. I have a one month rule for windfalls. They stay in the account until such a time that I have decided the way forward.

7. *Depending on the Generosity of Strangers*

This is living life with the hope that somehow someone else will show up in the nick of time to pick your bills. It leads to living in debt and hoping that those you are indebted to will forget the money. These people can come to you with their family to thank you for the debt forgiveness you have rendered them. Meanwhile, you have said nothing of such. 

They always convert their debt into forgiven loans by themselves without your consent. They are experts at this. They quarrel and get contentious if you do not forgive. Money problems abound.

So, next time you think of doing any of these, have a rethink.


  1. I impulse buy all the time, one bad habit I really need to stop. I guess that's why I've not blown lol

  2. I'm guilty of number 5
    May God help me

  3. No.5 is so me. Sometimes I write list in advance for my next 2 months salary, chaii God help me.
    I really need to do better and start budgeting. Thanks for this Stella.

  4. πŸ‘ŒπŸ‘ŒπŸ‘Œ

  5. 1. Pay yourself first
    2. Save for rainy days
    3. Learn how to invest
    4. Give every money a job(let it work)
    5. Live below your means
    6. Spend less than you earn
    7. Have a plan and set goals
    8. If you have it, don't flaunt it, invest it
    9. Keep your finances organized

    1. Pay yourself first,that is one thing I recently started.

    2. @no 5,do you mean leave within your means? Leave below your means sounds somehow to me

    3. I think if people can stop trying to impress others " appearing wealthy", ignore insecure flagrant displays of wealth on social media by those seeking validation and refused to be pressured by family and society to prove they have arrived then

      People will be under less stress and be more focused to obey these rules

    4. Temmy God bless you because living below your means is tantamount to you living like a miser.

      People be doling out principles that themselves don’t live by. Suddenly everyone has become a financial adviser.

    5. Temmy living below your means is the idea that you should not spend more money than you bring in each month or week depending on how you earn

    6. It's living less than(below) or equal to your means, it's still all living within your means as long as your are not living greater than(above) your means.

  6. Thank you for this.

    The first point is just me. I can't ever touch any money that isn't mine, either for personal use or loaning it to someone. I can't stand staining my name or the embarrassment that will follow when the owner comes calling. I no fit shout biko.

    1. I won't even collect the money to hold for someone else. I no like wahala

  7. I am guilty of none.
    My only problem is not knowing how to say NO to people.So what I do now,if you ask me to lend you 20k and I can let go of 5k....will give you the 5k with asking back.

    1. Continue ooo.
      You'll taste and see one day and teach yourself. Abi no be naija you dey so.

  8. See me sitting gallantly on point 2...God help me to readjust 🀦🀦🀦

  9. I' guilty of No.5. I write a list at the beginning of each moment and the items appear in the order of importance. Anyone I'm unable to do I carryover to the next month.

    1. This is so me. So far so good, it has been working fine for me.

  10. I spend money on things I need. In fact I submit monthly budget to myself, reveiw it myself, approve it myself and I follow through every month.
    Different accounts for different purposes. Once I receive any alert before I spend 1 Naira I don share the money into the different accounts some with higher percentage than the other. All account answer your name. lol
    I try not to live above my means too. I love the good life but I'm patient enough to wait for it and enjoy the level I'm @right now. It's not a bad one tho. God has been faithful.

  11. No 1 nearly put my mum into problem years ago, she lent money kept in her custody to a family friend, it took a lot of embarrassment and complain to refund few days to the submission. She learnt her lesson the hard way.

  12. Number 5 is my problem,always spending money before it comes. not my fault though, but how i go do now? God please help me.

  13. To the list add: Never lend money you can not afford to lose.. πŸ™„

  14. πŸ‘ŒπŸ‘ŒπŸ‘Œ

  15. I'm guilty of no 2, i spend on impulse and currently working on it.

  16. Also learn to lend money that won't hurt you and your relationship with people if it never comes back. Learn to say 'I'm sorry that I do not have this to give you at the moment but can you take this?', which is the amount that you know won't bother you should the person choose to be irresponsible.

    I have a friend who 'lacks' the ability to say no and it has ruined her finances terribly, I mean badly. At this time, she should loads of investments but she's got nothing to show for her labour because of this. I don talk tire. Please, let's learn to say no.

  17. I would add avoid investing in anything that you don't understand or that looks too good to be true - forex, bitcoin, trading. Approach with caution.

  18. I'm usually responsible with money and money related things but money wahala is too much Abeg. Sometimes I let go. I impulse buy, I take myself out to expensive places and spend like its my last day. Na who dey alive dey chop the money. But one thing I'll NEVER do is incur debt. How do I even sleep knowing I'm owing someone? I live within my means and sometimes splurge on my savings.

  19. No 1 is very important especially church funds.
    Don't be tempted to touch.


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