It is pathetic to hear of some individuals that have made it in life suddenly crash to zero. The reason for this is not far-fetched as a number of this people have used their money wrongly or probably made an investment that could not yield them a commensurate profits to be able to measure up to the initial capital and some other factors of which i’m going to explain later in this article.
It is pertinent to understand what what to do and what not to do with your savings in order for it to yield maximum result for you.
However, it is advisable never to do the following with your savings:
1. Don’t loan out your money
There is a reason why that money you set aside for personal use is called savings. If you have denied yourselves certain gratifications to save money, it is only reasonable for you to make that savings useful for you. Never loan your savings to anybody.
2. Don’t invest your money in a business you don’t understand
When some people hear about the huge return or profit they will get on a business in a short period of time, they don’t care to listen or know about how the business would be run before committing their savings.
This should not be you. You can’t afford to gamble with the money you’ve been saving for a very long time. If you don’t understand the business, let it go. Don’t put your money in a business you have no clue about.
ALSO READ: 5 Principles You Must Maintain If You Want To Become Extremely Rich – If You Are Poor You Are The Cause
3. Do not be too generous with your money
Good boy, I heard you are very generous, Philanthropist par excellence, weldone sir! Accolades like these will only run you down.
It’s cool to be generous, but don’t sacrifice your savings to expose yourself to a financial crisis. Use your savings to build your wealth and when you have more than enough you can give back to the society as much as you want.