Money is one of the most important topic of discussions in our world today, it’s vital for business transactions and other economic reasons, this is why we must look into the various ways people lose money without knowing.
Have you ever lost money before?, maybe it fell from your purse or your wallet and you just didn’t realize it.
How did you feel about it?, am sure you were disappointed, angry and completely displeased.
Knowing the various ways you’re losing money will help you save more money and keep you financially stable and happy.
Table of Contents
Let’s quickly talk about money:
Money is simply a means of exchange which can be represented with banknotes or coins as used in old days.
It’s important for us to know that we live in a world where money controls our daily activities.
Money is involved in business transactions and other economic needs.
Man’s need for money is demanding and that why we must know how to save money, make more money and live a happier life.
I have carefully outlined some 12 fantastic ways of getting money to start up a business so you can also get money with ease.
In this article, i will show you the various ways you’re losing money without realizing it so you can cheaply avoid it.
One of my great financial mentor by name “Sam Adeyemi” will always say the real money is not the paper, the real money is the value and you can’t see value with your two eyes.
A good understanding of how money works will help you save more money without depending on a bank.
So let’s quickly analyse the simple ways people lose money without knowing in our world today.
1. Lack of value to time makes people lose money than those who value time in business.
Time is one of the most valuable resource available to man because time is a convertible resource.
In the business world they will tell you time is money.
The wealthy part of the world values time besides the poor part of the world treat time with levity.
When people discovered the connection between time and money they invented the clock to measure the rate at which it goes, hence you can determine the rate at which you make money with time.
Poor people value money over time, they will spend a lot of time trying to conserve a small amount of money.
Rich people value time over money, they will spend money to conserve time.
For instance, 2 people wants to travel on a 500 km business trip, they have two options to either go by road or by flight.
In this scenario, one traveled by road to save money while the other traveled by flight to save time.
The would both get to their destination, but the man who traveled by flight would have returned for that trip and continue carrying out other business transactions and the person going by road is still on his way.
Well, it’s okay if you can’t afford to travel faster now but in your thinking don’t justify it.
Time is one of the most valuable resource available to man, time is a resource, it’s also convertible.
A simple calculation to find out the worth of your 1 hour working time
Take a pen and sheet of paper, write down your income and the number of hours you work now per-month.
Hence, divide your income by the number of hours you work, then you will see what 1 hour of your working time is worth.
Let say you earn $5000 per month now but you work for 8 hours daily and 26 days monthly, that means you work for 208 hours monthly.
Next, divide $5000 income by 208 hours, you will discover that the worth of your one working hour is at an average of $24 which isn’t a bad pay for an hourly job.
Time is a resource that can never be replaced, once its gone, its gone for life.
This is why Dr Myles Munroe says killing time is not murder it’s suicide.
Entrepreneurs value time over money because they know it’s a convertible resource.
Most people don’t value time or see it as money because they can’t see it or touch it.
The amazing thing is that everyone irrespective of their status has the same amount of time, 24 hours a day.
You can’t call a man who has time a poor man even if he doesn’t have a dime but understands the value of his time.
It’s only a matter of time for him to know how to convert his time to money.
Everyone can be rich if they know how to utilize their time.
Various ways time can be converted to money
- Time can be converted to knowledge, this happens when you go to school, the knowledge then earns you the money.
- It can be converted to a skill which solves real life problems to earn you money.
- The development of any product, machinery or item requires time to create which is now sold to make money.
- Time can be converted to wisdom, the development of your mind and thinking ability for creative thoughts.
Time Management Tips For Entrepreneurs
- Have a daily, weekly or monthly work schedule.
- Have a set goal for each day.
- Know the best time to carryout each task.
- Carryout the most important task first.
- Keep a time limit to complete each task.
- Get a short break and rest after completing each task.
- Do things without procrastination.
- Be diligent in your business.
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2. Zero regards for new ideas make people lose money in business.
Thought have value, Ideas create wealth.
Ask those in the business world and they will tell you that the poor man isn’t the one who doesn’t have money but the one who doesn’t have ideas.
Some of us have lost a lot of money because when ideas came in we neglected them.
Rich people know that money is beyond the paper note but unfortunately poor people don’t.
Creating productive ideas are part of the 3 psychological business discipline a successful CEO must have to succeed in business.
The people who know that real money is value will always control the lives of those who don’t know.
Words and thoughts are cash, no wonder rich people speak the most impossible things because they think impossible things.
The human mind has capacity to produce more gold than the soil will.
Its good for you to discover the major reasons entrepreneurs fail in business so you don’t make the same mistakes they did.
Basic reasons you should see ideas as money.
The wealthiest people in the world used to be people who own physical properties like lands, houses and machinery in times past.
Nevertheless, today the wealthiest people in the world are people who have produced productive ideas.
These are creative thinkers who drill gold from their minds, they are people who prints money from their mind.
For an entrepreneur or a business personnel, 1 idea can produce a billion dollars.
Successful entrepreneurs know how powerful ideas are so they will never trash an idea when ever it comes up.
Money for most people is the real cash, you aren’t rich until you drive a big car, put on expensive cloths and shoes or live in a big house.
Anytime you trade off a good idea just because it was too big for you or it doesn’t look possible, you just lost money with knowing.
When you read the book written by Napoleon Hills titled Think and grow rich, you will discover the power of ideas right inside of you.
Your iPhone, Laptops, Computer systems, Cloths, Cars and houses all started as a form of idea in somebody mind.
Unfortunately most poor people don’t value ideas because they can’t convert it to money.
The power of intellectual property.
Countries that value ideas as resources invented 2 words called Intellectual property, why?
They discovered that ideas have as much value if not more than their material equivalent, so before you only got certificates that confers ownership of landed properties on people.
Now great nations have designed laws that confer on individual the ownership of ideas.
So now you can sell, lease and rent an idea the way you can do with a landed property.
The world has redefined wealth, so today we have young enterprising people setting up websites and within 1 year or 2 they are multi millionaires or billionaires because of website.
Where is the internet, the world has tapped into the realm of the invisible, that’s where real wealth is.
One of the greatest investments you can make in this life is to invest in your ability to think.
It’s interesting to know that the people who move the greatest amount of money in the city are people who think the most, not the people who sweat the most.
There is nothing of value today in our world that did not begin as an idea in a person’s mind.
Hence, countries where values are placed on thoughts, they value plans, because plans are the products of thoughts, they value the future.
The average wealthy person has plans, has goals written down, the person does calculation, whereas, the average poor person doesn’t have a plan.
If ideas and thoughts are powerful, then the equipment that produces the ideas must be valuable, that’s the human mind.
3. Your health is your wealth, people lose money when they are sick.
Have you ever been so sick that you could hardly eat or do laundry, not to even talk of going to work, this is a pure proof that health is wealth.
Losing health and energy means losing money, no sick person on a sick bed ever pursues any set goal.
no matter how ambitious you are, when you lose your health, you just lost your money.
Whenever a man loses his health he has indirectly lost one of the most precious value to man.
This explains why a sick person can sell all they have to stay healthy.
When your health and energy is in place, you can pursue your business goal, make big deals and perform outstandingly well.
Zero energy means zero productivity and zero productivity means zero money.
Anyone who has lost his health and energy has just lost his money indirectly and directly without knowing.
Unhealthy workers makes people lose money in business.
- Healthy workers are more productive workers at work.
- Paying for health and medical bills are extremely expensive.
- Being Healthy builds up your personal self esteem and confidence as a business expert.
- The healthier you are, the more your brain and immune system is boosted for productivity.
- Unchecked health crises can lead to heavy debt
- Health challenges can lead to death and no dead person makes money.
4. You’re losing money if you lack the wealthy Power of Association.
Productive association is money, it’s cash, it’s wealth in it’s intangible form.
How wealthy you will become or how much money you will make will also largely depend on the associations you keep.
The people who influences your financial life the most are your close associations.
This is why rich people associate with rich people, but unfortunately for the average poor man his friends are also poor.
Therefore, i will like you to do something when you get home, take a list of the 7 closest people to you.
Check the life’s, visions, goals and future of the people in that list, you’re looking at your future.
Your life can’t be any better than the life’s of the people on that list, it’s a law.
The implication is that if you succeed in changing one name on that list you change your future.
Therefore, Get close to people already producing the kinds of results you desire, get a mentor.
Association is wealth, rich people know the power of association and this makes them grow richer.
Lack of productive association will make you lose more money than you ever thought about.
Productive association will also help you know how to avoid debt or how to manage debt.
5. Zero Trust, Honesty and Integrity makes you lose money in business (No Social capital)
Let’s talk about honesty and integrity.
Many people don’t know that honesty as a personal standard is wealth, its intangible wealth.
Trust, honesty and integrity can be converted to cash in business.
In the economic world, trust, honesty and integrity is called social capital.
For instance, if you’re sitting down now with a million dollars and two people come to you with similar proposals, each of them wants half a million dollars to do business.
If they both promised to return the money in 3 weeks with 20% interest on your money.
What will determine your willingness to loan out your $500,000 is their ability to keep their promises.
The less you trust a person the less your money flows to them.
How wish some people understand this then they would not destroy their reputation because they want to get money.
The less financial integrity you are the poorer you are.
So when there is trust, you can carry out transactions without cash.
That means i can sell my goods without getting cash immediately in return because the person who is buying my goods has promised to bring my money.
The collateral the person used in the scenario above is his or her integrity.
When there is trust in the place of financial transaction, it increases the velocity of money, the rate at which money travels.
When there is a high velocity then you can make a large amount of money with little investment.
A brief description of how honesty and the velocity of money can produce more money in business
For instance, somebody invests $10 to buy a product and sells for $12 making $2 profit per product, if he is able to sell 20 pieces a day, he will make some good amount of profits.
So if he repeats the entire process for the next 10, 20 or 30 days he would have made a lot of money, yet another person can invest $500 and make lesser profits per month.
$500 INVESTMENT COMPARED to $10 investment yet the person with $10 investment makes more money.
That what velocity of money does, it’s multiplies the rate at which we make money.
Lack of honesty, trust and integrity are one of the various ways people lose money without knowing.
6. People lose money in business transactions when they lack financial education.
Anyone who deprived you of education and the ability to train your mind stole your money.
You may not realize it now but you will realize it in the future.
If you couldn’t get formal education, educate yourself by reading books, train your mind.
Today, businesses depend on strategic marketing to beat their competitors in the game and you can’t do this without being educated.
You stand to lose customers and money to your competitors if you don’t know these 6 latest marketing hacks to grow your business better today.
Lack of education is a risk anyone mustn’t take in today’s business world.
Therefore, grow your mind, educate your self, build up the potentials in you to solve problems within your environment by educating yourself.
Develop productive digital marketing strategies to scale more heights in business by educating your mind.
This will help you get more clients to your business and avoid losing money to your competitors.
Various ways education can help people increase their making money capacities:
- Education will help improve your communication skills
- It will help you increase your bargaining power as a business person
- You can offer teaching services by educating others to make money
- Education gives you added advantage and self esteem in the place of business.
- No management in business can run without quality business and financial education.
- Running a business requires good business administration knowledge for daily business operations.
- You can master the art of digital marketing to win more clients and keep more money by educating yourself.
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5 extra means you’re losing money without realizing it [updated]:
1. Saving cash in savings account:
Savers are losers because money saved up can be devalued by the continuous rise in inflation that is devaluing the currencies of the world.
Imagine if you saved $20000 in an account last year and inflation sets in by 2 percent this year, your $20000 would have dropped in purchasing value to $19600.
If this is not controlled and continues that way for 5 years then your $20000 would be $2000 less to give you $18000 in total.
2. Buying bumper promo packages:
Have you ever been tempted to buy a product simply because the seller was running a bumper promo that gives you 1 item for free when you purchase an item.
The true reality here is that 90% of people who buy such offers never truly needed those item, they were just tempted to buy because of the sellers offer.
Hence, you might end up spending the money you needed to buy the items you actually needed on things you don’t really need.
If you’re used to rushing promo offers you never needed, just know you’re losing money without realizing it.
3. Uncontrolled electricity and water bills at home:
Not turning off your electricity utilities when you exit a room or when going out to work could amount to excessive waste of money.
Even water if not controlled and wasted in the kitchen, toilet and bathrooms could increase the bills of running your home.
Imagine leaving a water tap a bit locked because you were in a hurry not to get to work late because you didn’t wake up early.
You will be surprised at the outcomes of waste you would meet when you get back home from work.
Am sure you know that’s an increased bill for you to pay to your water utility service.
4. Moving your debit cards around:
Debits card could be cool moving it around to pay for something at a shoppping mall or in a bar.
However, have you realized you’re losing money without realizing it because you are prompted to keep spending without control when your debit card is just within your wallet or your purse.
Think about that, you already know what to do.
5. Trying to impress your friends and colleagues by buying expensive stuffs:
Stop trying to impress people by spending a lot of money to please them when you guys hang out.
No body will take account for you when you go broke or run into a bad debt, the truth is nobody cares.
The sad reality is that all those you’re trying to impress might never show up for you when you are cashless.
Trying to please people is a financial trap that will make you keep losing money without noticing it.
Learn to be financially smart and control your income.
Don’t just learn how to make money and how to save money, knowing the various ways people lose money will help you maximize your financial life.
The real money isn’t actually the paper, the paper or bank note is just a representation of the real thing.
Time is money, thoughts, ideas, plans, health, productive associations and education are all intangible form of money.
They are invisible money which can ultimately be converted to real cash because they are all convertible resources.
Now you know the various ways people lose money without knowing, make sure to implement this article in your daily life.
Kindly take action by sharing this article and tell me how much value you got after reading this article at the comment section, thanks.