Biggest Money Mistakes To Avoid In Your 30s and 40s - Learn From Our Mistakes

this is the most important video you will watch today I hate to be the one to tell you but a lot of us are financially illiterate these four women look happy but behind those Smiles are very different Financial realities and many of us can identify with them just imagine what happens when life hits you harder than your budget can handle one moment you're keeping up with the lifestyle of your dreams and the next your drowning in death lost in a sea of bills and responsibilities and worst of all no plan to save yourself these four women they could be any of us but today this brief story is a cautionary tail of what happens when financial planning goes wrong or doesn't happen at all dami is 32 years old she's single fabulous and completely living beyond her means she loves the good life fancy dinners designer shoes spontaneous shopping spree and why not life is short right but damy's credit card is her worst enemy behind all the Glam she's piling up debt faster than she can pay it off her rent in downtown Toronto 40% of her paycheck she swiping her card to keep up with a lifestyle that she really cannot afford damy is chuckling and talking to her friends and in typical damy style she says girls I deserve to spoil myself I work hard for my money why save when I can always make more while her friends laugh and cheer her on bimbo is married to a man with a good job she's a stay-at-home mom but she spends more than she saves She's always telling her husband we need a bigger house I want a new car when are we going over again on the surface everything looks perfect but there's a problem her husband has been cutting Corners to keep up what bimbo doesn't know is that her husband stopped paying their life insurance premiums long months ago and when tragedy strikes the financial House of Cards will come crashing down and at this girl's outing you can hear her saying babes are we still looking at that new SUV this weekend while her friend friends look at each other and say yes of course fumi is the responsible one she's good with her money has Investments a budget and even an emergency fund but her husband and kids not so much they're all about material things the latest iPhone fancy clothes expensive outtings she's constantly battling their unrealistic expectations while trying to keep the family finances in check F me while her friends are laughing and drinking she's calm composed and reviewing a financial app on her phone her face shows the strain of balancing her family's wants suddenly she says do you know how hard it is to say when your entire family thinks money grows on trees I set aside money for a future but then there's always another birthday party to throw or another Gadget the kids must have the other ladies looked at her strangely fumi was always the one to spoil the f with all the complaints about her family forget about that D me says we are here to have fun and then there's uch she's single in her early 30s she has no kids but she's weighed down by the expectations of her extended family back home in Nigeria every month it's one thing or the other uch send money for school fees uch we need help with hospital bills uch this uch that she's stuck paying black tax and can't say no no matter how much she earns she's never able to keep up with her own needs buying a house retirement that feels like a distant dream that she would never reach but on top of that uch loved the good life so between paying the black tax and keeping up with her good life she had absolutely nothing saved uch turned to her friends while reading a text message from her brother can I please leave one month without someone asking me for money just one month the four women sit together chatting over dinner the conversation starts light but turn serious as they t as they start talking about their financial struggles damy says with a laugh you know I've been looking at this trip to Greece next month who's in bimbo fumi and Uchi exchange glances fumi sighed and said another trip I can't even keep up with my mortgage payments and you're talking about grease bimo nothing in agreement said I don't even want to think about another expense I still have to convince my husband to buy us that new house things are so expensive in Canada everything is going up rent bills food we can't even keep up uch looking frustrated said tell me about it every month it's something my family back home needs money for this and that and here I am barely saving a dime I will not bore you about the day-to-day life of each of these women but needless to say that they were each living in their own Financial bubble and we all know how Bubbles are they bust here is damy in her home and she gets a text notification on her phone it's a message from our credit company she frowns damy reading the message aloud with her voice dripping with sarcasm you've exceeded your credit limit minimum payment is her voice TRS off this is a regular message and even though she ignores it the whole damy has dog for her self gets bigger and bigger until it engulfed her sadly a couple of months ago damy lost a high paining it job she was not expecting it and of course she had no emergency funds no plan B nothing she could not even survive one month without a paycheck this was the moment that reality hit dami dami's endless spending caught up with her she had to move out of her glamorous apartment to live with her sister she was broken and broke and bimo she was about to face the worst Financial shock of her life fumi was trying to balance her family spending habits and uch uch was sinking under the weight of responsibilities that weren't even hers one day bimbo is sitting at home when she gets a call her face turns pale as she listens to the news her husband had passed away suddenly her husband was her insurance bimbo had no job but she thought at least financially they were secure because her husband had a $1 million life insurance policy but then she found out he had cancelled his life insurance policy months ago without telling her he could not keep up paying the premiums bimo is in shock as her friends conso her I I thought we had Insurance what am I going to do we were supposed to be fine he never told me of course he never did he died in Tate without a will so bimbo did not have immediate access to his assets she had to wait for his creditors to be paid first and sadly she could not keep up with the mortgage payment even worse bimbo had zero Financial knowledge she did not even know how to balance their financial books she had been leaving on a pack of cards that suddenly collapsed fumi and uch went through their own Financial struggles as well uch had to quickly realize that even though she had a financial responsibility to her family back home she had to be wise about it because folks back home were depending totally on her they did not even bother to get jobs and they were spending recklessly because Auntie Uchi the provider would provide it took a rude awakening when her brother insulted her just one time she could not meet up with his demand by saying you think I survive on your money go to hell the skills fell off her eyes and uch decided to put a cap on this family help that she had been drowning in as for fi she had to have a Frank talk with her husband and children who had zero Financial knowledge they started budgeting and cutting down on unnecessary spending as fi insisted that they do it was painful and slow but she noticed a little progress sometimes it takes a harsh wakeup call for us to face the reality of our financial situation the truth is leaving beyond your means avoiding financial planning drowning in debt or relying on someone else to handle your finances can lead to disaster the women gather again this time with a financial coach they talk about setting up emergency funds budgeting planning for the future and the importance of of life insurance you all have different stories says the financial coach but the lesson is the same whether it's saying no to that shopping spree or prioritizing savings over another vacation it's time to take control you need to plan for tomorrow not just today in the end the women learned their lessons the hard way damy slowly started chipping away at her debt binbo rebu her life starting with an emergency fund and life insurance for herself fumi set firm boundaries with her family focusing on her financial goals and uch she finally started saying no and took control of her finances refusing to be the fam ATM each of these women went through their own struggles and each one of us is going through ours as well we all want the good life but it's time to think about the bigger picture what's your financial plan how are you preparing for tomorrow don't wait until it's too late to put your financial house in order these women are pro proof that it's never too late to take control of your finances one thing you can start to do is stop overspending and start investing and I invite you to watch this video next on how to start your Investment Portfolio