10 ways people lose money and possible solutions

If you have handled money before, no matter how small, you can tell that it hurts to lose it. There are ways to lose money, and there are possible solutions as well.   

Money is good, and having it brings you a calm and confident feeling.  

There’s a feeling of calmness and confidence that comes with cash in hand or at the bank. Not that it’s the sole determinant of your happiness, but that feeling is there regardless. It’s something that one cannot explain sometimes. However, you could lose money in an almost unnoticeable manner if you are not careful. Here are easy ways to lose money that you hardly pay attention to.    

1. Ignoring your needs and going for your wants

It is essential to have your needs arranged on a scale of preference, where the most important needs are highlighted first before the less pressing ones. When your needs are out of sight, it is easy to get swayed by seemingly irrelevant wants.     

So, when you leave out the pressing needs that you have and spend money on less urgent things, it’s just as good as losing money.   

2. Spending on flashy things you are not financially fit for

You know what they say about the bandwagon effect. You are trying to follow the crowd by buying what you don’t need and can barely afford. And you know pretty well that to buy anything at all, you need to thoroughly plan and prioritize. But you lose money because you are trying to imitate the lifestyle of someone that you admire, or maybe you’re envious.   

That person you are trying to imitate probably has nothing compared to you and is trying to prove a point. It could also be that they are way more financially fit than you, and it wouldn’t hurt them to spend heavily.  

3. Making decisions regarding investment without verification

You have heard and learned that in your 20s, you must not be afraid of taking risks. However, this does not mean that you should be reckless and unwise with your investment decisions. It’s not out of place for you to be well informed about a deal before you invest. You’ll lose money easily if you invest in fraud. And that in itself would hurt more than the normal occurrence that comes with taking risks that are true.  

4. Leaving money lying around in unusual places – couch, car, at the mall

Oh yes, this right here is another easy way to lose money. Get a wallet, purse, or bag instead of leaving money lying around. It will be easier to account for them when you keep them safe. You’ll have more when they are not lying around. What if someone steals from you?     

5. Subscriptions to free trials on apps

You know that moment where you are keeping money jealously in your account for better days/rainy days, then all of a sudden you get a debit alert explaining that your money has been deducted due to a subscription that you’ve not been true to. Did you ouch? Yes, that’s one easy way to lose money.    

6. Buying irrelevant things

Some people lose money easily because they buy irrelevant things just to prove a point to people and their peers that appear to be doing way better than them. If you walk through your 20s with this mindset, you’ll lose money without stress, and suffer greatly for it.      

7. Buying on impulse

This minute you have money, the next you don’t, and that is because your slang is “you only live once,” “if I perish, I perish,” or “we live to fight another day.” You don’t save money. You spend all that you have without setting some aside.   

8. Irrational demands of your partner or friend

You keep giving in to their demands to buy unnecessary and expensive things. You know, and they know that you are not financially fit to meet their demands, yet they choose to be unthoughtful and table such demands. This is an easy way to lose money; only if you give in to their demands.    

9. Addictions and gambling

You could be addicted to carbonated drinks, alcohol, cigarettes, shoes, phone gadgets, new clothes, etc. Gambling with the idea that you get more than you put into the game or whatever it is, is definitely an easy way to lose money.    

10. Hopping on trends

The latest smartphones, the latest fashion, the latest furniture, trending jewellery, or anything that rides on the tides could enable you to lose money.   

How to keep your money  

1. Identify where you stand financially

One of the easiest traps to fall into is lying to yourself about where you stand financially. It’s a beautiful thing to have so much hope for the future you see and profess it. In fact, it’s not wrong to carry yourself in that light. However, you’d be throwing yourself under the bus if you are not honest about your financial status.   

When you can identify your place financially, it won’t be easy for you to lose money. Why? Because you are aware of your financial state.   

2. Have a budget to keep you focused

Having a budget prevents you from leaving things to chance. How? A budget clearly outlines what it is that you should spend your money on, and what to avoid. A budget shows you what your needs and wants are and how much money is allotted to each. This will prevent you from losing money easily because you can clearly differentiate what requires your money from what doesn’t.   

3. Get a wallet

This right here would help you keep your money safe. It’s not a good thing to lose money. That feeling hurts deep down regardless of how much you like to tell yourself that nothing is wrong and you’re not hurt. A part of you still wants all your money to be intact. A wallet will help you keep your money from flying around.   

4. Stay true to yourself

The pressure is getting worse. Every day, people see people who appear to be doing way more than them. The bandwagon effect is set to creep in when you succumb to pressure. You try to feel “among” and imitate people who are more financially buoyant than you.   

Be true to yourself. If you can’t admit to yourself that there are certain lifestyles you cannot keep up with, then you’ll lose money easily.   

5. Keep friends that drain you at arm’s length

Yes, this might sound ridiculous to some people. You know that friend or that partner that manipulates you into spending money that you cannot afford. Keep them at arm’s length in order to protect your sanity financially.   

6. Seek help

This especially is for those who are so used to losing money in the easiest possible way. If you are addicted to gambling and impulsive buying, then you might need help from someone to hold you accountable even as you make attempt to be better.  

7. Unsubscribe from subscriptions

Those plans that you have subscribed to that you no longer need, there’s the need to go back to them and unsubscribe. You can have them written down so that you’ll always remember to go back and opt-out from those plans.   

8. Make wise investment decisions

To not lose money, caution yourself not to jump on every opportunity that looks like an investment or a means to accumulate money. If it’s too good to be true, let it slide or better still, do thorough research and seek advice from a professional before taking any step.   

9. Self-control and discipline

Above all, you need self-control to be able to ignore the subtle ways to lose money that come at you. It takes discipline to have a financial plan and stick to it. It takes self-control to not be swayed by the cravings and urge to spend money.   

In conclusion, it’s not only big ‘occurrences’ that could make you lose money, it’s in the little things that you pay little or no attention to at all. Be attentive and prudent.   

ALSO READ FROM NIGERIAN TRIBUNE

• Four PDP NWC Members Return Over N100m ‘Bribe Money’ Paid Into Their Accounts

• Banks’ USSD Debt Hits N80bn ― Telecom Operators