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10 Financial mistakes young Nigerian Entrepreneurs fall for in their youthful age

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All Nigerian youths seem to have a particular pattern in life. At this stage of their lives, they either get a degree in the university for those who can afford it, venture into a business or learn a skill for future purposes.

For humans, learning is a continuous process, there are no age limits for learning. In the process, we get to decide what’s best for us. Along the way, we unlearn the things that are not useful to us and embrace the things that make us better people in society.

However, most youths make some mistakes that shouldn’t be made because, at the end of the day, it might cost them a lot. Some might be able to correct it if realized in time, while others will keep up with it until they are ruined, living the rest of their lives in regrets. So it’s best to stay focused on whatever you do in life so as not to make such costly.

One of the common mistakes youth often make is how they handle their finances. Most of them live extravagant life. It is one thing to make money, investing it right is very important, which is one knowledge the youths lack.

Just because they are young, vibrant with fewer responsibilities, they squander money on irrelevancies. The purpose of this write-up is to guide you on better ways to spend money.

EMOTIONAL SPENDING

A lot of youths are guilty of this. They do not hesitate to spend money on things that aren’t necessary. You will catch them on several occasions buying stuff or goodies all in the name of enjoyment forgetting to invest their money or save for the future purpose

SUBSTITUTING GROWTH FOR MONEY

Nowadays the majority of the youths chase after money, none of them are looking to build themselves, to grow. All they think about is money, which they have no idea how to use wisely.

And this is why the youths are advised to learn good vocational skills, and for the graduates, get jobs in line with their career path. This way you will build yourself up to certain standards, and by so doing make room for financial stability.

NOT PRUDENT IN SPENDING MONEY

Youth have a strong urge to live exotic lifestyles, wanting to use expensive clothes, shoes, cars, etc. They tend to spend more than their income, and this is no way to start life.

Sooner or later you will run into huge debt. You must learn to cut your coat according to size. Quit desiring the things you can’t afford, or paying people to do your chores. Some people employ cooks, laundrymen, rent cars when they earn little. Learn to do all these yourself to cut down expenses.

SITTING COMFORTABLY AND HAPPILY IN DEBT

Many youths are in the habit of accumulating debt and this calls for great concern. They engage in a lot of activities that require much spending which is way more than their income.

We understand that sometimes life presents you with so many problems that you will be left with no other option than to borrow money, but don’t let it become a habit. Try having different sources of income that will enable you to cater to your urgent needs.

NOT SAVING UP FOR EMERGENCIES

Emergencies are inevitable, they arise daily, so we must be prepared for them. The best way to be fully prepared is by saving money. Saving makes you confident, stabilizes your finances, you will be able to handle anything that comes your way.

NOT HAVING A FINANCIAL PLAN

Having a financial plan keeps you secure. It helps you cut down unnecessary spending. Map out a financial plan that covers all that you want to achieve sooner or in the nearest future.

LIVING A WASTEFUL LIFESTYLE

This is very common with the youth because they do not have many responsibilities on their shoulders so they spend carelessly. They try to impress the public by using expensive things. You should learn to save as this will give room for growth.

LOVING FROM HAND TO MOUTH

This is typical of every youth. They wait for their salaries to be paid, and instantly use them to solve problems or offset outstanding bills.

All the money they get goes to the lender they loan money from. This mismanagement will only present you with more and more problems.

RUNNING YOUR BUSINESS IN ABSENTIA

Some people are distant from their business and expect it to magically grow overnight, that is not possible. You need to take your business seriously as a young entrepreneur, as that is the only way to succeed.

Allowing your brother, sister, or friends to run your business for you while you are away doesn’t always end well. You need a close watch on your business at the first stage, then you can choose to employ someone once the business grows to a certain height.

RELYING ON ONLY ONE SOURCE OF INCOME

Living in a country with an unstable economy, no one should be advised to have just one source of income. Having multiple sources of income is a sure way to survive in this country.

Conclusion

The best way of surviving in this country as a youth is to live right, be prudent in your spending, learn a skill that will fetch you money someday. Finally, get what you need and not what you want, it is the only way you can achieve your goals in life.

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