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Mistake 2:

Spending your time on things that are easy to measure money-wise

We will spend half a day travelling to one end of the city, to save Rs. 1000, because we know we will conclusively save that amount

But we won't spend 2 hours preparing for our salary negotiation!

Mistake 3:

Taking too many loans

We over-index on our future earnings.

And spend more today, than we can afford today.

Loans tie us down.

They increase our burn rate.

They make us risk-averse.

They make us feel like we are stuck!

Mistake 4:

Believing that our income is capped

Our income is not capped. There is no upper limit to how much we can earn.

Instead, it is our spending that is capped. We have to spend a bare minimum to live, to survive.

Instead of reducing expenses, focus on increasing income

Mistake 5:

Trying to time the market

Market is too high. Let it fall.

Market is low. Right time to buy.

No one knows the highs or lows of a market. The best way to invest over a long term, is to invest regularly. Irrespective of the price at that time.

Mistake 6:

Investing because of FOMO

Everyone is investing in Bitcoin. I should too.

Everyone is selling Bitcoin. I should too.

Everyone is buying ITC. I should too

Everyone is selling ITC. I should too

Everyone is NOT you!

Invest on your beliefs and research and appetite.

Mistake 7:

Renting your time and not owning any assets

Everyone in a job isn't going to create supernormal wealth.

Because we have to spend time working, to earn.

Assets, on the other hand, make money, even when we sleep.

Start a company. Own stocks. Create rental income.

Mistake 8:

Investing late

20s is the time to have fun. Will start investing in the 30s.

30s is the time to build a family and enjoy. Will start investing in the 40s.

The right time to start investing was when you turned 18.

The next best time is TODAY.

Mistake 9:

Comparing your money to others

Money, for most of us, is an outcome. Not an input. 

It is the result of the decisions we have made, not the reason for the decisions we made.

Compare the decisions people made to get to their money.

Comparing the outcome, won't help!

Mistake 10:

Running after money

Money gives you freedom.

Freedom is a privilege.

But the minute we run after money, we are not free anymore.

Use money to earn your freedom.

Don't give up your freedom to earn money.

Bonus:

Not taking risks, when you can

In our 20s, when we have little to lose. And even if we do lose, we have time to recover. 

Lesser so in our 30s/40s

That's why our parents love FDs.

But we shouldn't.

Take risks early on. 

And don't worry about the short term ups and downs.

I wish money was a topic that our parents spoke about, or our schools/colleges did justice to.

In the absence of it, we are left to learn from those who have made mistakes and realized what to do.

Or make those same mistakes ourselves.