Cash mistakes that the rich donâ€™t make
SEE ALSO :Cash mistakes that the rich don’t makeAnd be wary of cons in the real estate sector. Do your homework, and where necessary, enlist the services of an expert. 4. Paying inflated interest rates Mobile money loans have generally been a lifesaver, but they’ve also made getting into debt that much easier. While the temptation to borrow from one of the many mobile loans platforms may be strong, do your math and settle on the application that gives you the best rate. And sometimes, you could borrow from family or friends at a friendlier interest rate. Explore your options to keep your debt levels as low as possible. 5. Buying into designer labels Few people can tell the difference between an original Hermès Birkin bag and a knock-off, so unless you can absolutely afford the $10,000 (Sh1 million) starting price without breaking the bank, don’tbother. Extend this attitude to products as basic as coffee – you don’t get any richer by buying an expensive cup of takeaway coffee; cut your costs by carrying your own brew or buying from less established outlets. 6. Flirting with credit card debt Swiping plastic to pay for your purchases can be terribly addictive. But while your limit may be high, stay within it. Don’t spend more than what you can pay back without breaking a sweat – you don’twant to try keeping up with credit card interest payments. Also, when getting a credit card, find out from you bank how you can avoid some of the attendant costs, such as joining fees. 7. Falling for sales lingo When buying your electronics, salespeople will sometimes try to get you to pay for things like extended warranties. But before you fall for this, research the kind of coverage the product comes with, and its reviews online. You may find you don’t need to pay any extra to keep the product in top condition. Also, before deciding to splurge on items that are on ‘sale’ or are ‘up to 70 per cent off’, do some comparison shopping. You may find the product cheaper at another store. 8. Impulse buys We all know we should never buy anything on impulse, but it can be hard to help yourself when you walk into a supermarket to pick milk but know you’ve got money in your wallet and no plan for it. One of the best ways to avoid impulse buying is to use a shopping list and stick to it. You can also leave your cards at home and carry just the cash you need, as well as plan your meals in advance to keep your food costs low and minimise the number of times you need to step into a store.
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