Six Money Mistakes That Keep You Stuck (And How to Fix Them)
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Writer and philosopher Ayn Rand says ‘money is a tool to get you where you want to go, but it will not replace you as the driver’.
Yet many
of us give away that power by letting our money habits drive us into financial
stress.
Here are six money mistakes that many of us make, and how we can fix them.
1.
Not tracking spending
Do you ever catch yourself questioning wonder where your money goes? When it seems like one minute it’s here the
next its gone and you have no idea where to? That’s what happens when you don’t
track your spending.
Why it’s a mistake:
When you’re not tracking, money slips through the cracks. You lose sight
of how much, where it is coming from. It becomes
hard to budget, save, or plan ahead.
What to do instead:
Start tracking every shilling. Use a notebook, spreadsheet, or budgeting
app. Write down your daily expenses for even one week; you’ll be surprised what
you learn.
2.
Relying on motivation
Motivation feels great when it's there, but it's also unreliable. Life
gets busy. We get tired. And suddenly, all that budgeting enthusiasm disappears
Why it’s a mistake:
Author James clear says motivation is overrated; what matters more is the
environment in which you operate.
Depending on motivation alone means the moment life gets stressful your
money habits crumble.
What to do instead:
Build systems. Automate your savings. Create daily, weekly
or monthly “money check-ins ” to review
spending budget and goals Systems keep you on track even when
motivation flies out the window. And it will.
3.
Saving what’s left instead of saving first
Most people spend first and hope to save what's left. If there is anything left at all!
Why it’s a mistake:
This approach makes saving optional, not a priority.
What to do instead:
Flip the script. Pay yourself first. The moment you receive money save a
set amount before spending a shilling. Don’t focus so much on the amount; focus
more on building the habit.
Financial experts recommend saving on average 10% o what you earn. Don’t
get discouraged if you cannot make 10%. Start somewhere even with 1%.
4.
Not having an emergency fund
Life happens! Cars break down, people fall sick, people lose jobs.
What to do instead:
Start building your emergency fund today. Start small. It’s a cliché yes,
but really, start small. And keep growing your fund. Aim to have one to three months’ worth of
essential expenses i.e. if your monthly expenditure is UGX 1 million then three
months’ worth of expenses will be UGX 3 million.
For many people even the thought starting to invest is
intimidating. Add to that the myth that often gets thrown around that it
requires bucket loads of money to start.
Why it’s a mistake:
Keeping all your money in a savings account means it loses value over time
Listening to the noise (especially
on socials) saying investing is only for the rich. Investing is how people get
rich-one of the ways anyway!
What to do instead:
· Start with low-risk investments like money market funds or treasury bills.
· Educate yourself before you invest; avoid “get rich quick” schemes.
·
Diversify; don’t
put all your money in one place.
6. 6. Believing we are bad with money
If you believe you’re bad with money, your mind will
look for proof to confirm it.
Why it’s a mistake:
- It makes you believe it’s a habit you cannot
change
- It leads to avoidance and guilt. You avoid checking your accounts, budgeting, or learning about investments.
What to do instead:
- Shift the narrative: replace “I’m bad with money”
with “I’m learning how to manage money better.”
- Focus on small wins like tracking expenses or
paying off one small debt.
- None of us is born knowing how to budget or
invest. Learn the basics: read, listen to podcasts, or join a personal finance
class.
Improving your finances really does
start with small steps like these that are completely within your power.
miss.songa@gmail.com
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