The Number One Financial Mistake – Jerry Fetta

The Number One Financial Mistake

What is the number one financial mistake people make? It’s made by virtually everyone everyone in the country! This mistake is make is made in 2 instances. It has to do with over spending and penny pinching. I’m going to explain each of these instances in depth and what the correct action is instead.

1. Penny pinching when we feel broke.

We’ve all been there right? The bills seem bigger than our paycheck this month. The savings account is pretty dry. We aren’t quite sure how we’re going to make ends meet. So what do we decide to do? We begin cutting back. No more eating out, we buy cheaper groceries, and we try not to fill up our gas tank too much. This is a valiant symbol of effort but we’ve identified the wrong problem. The problem is not that things cost too much. Let’s face it, between things costing more and the buying power of our dollar going down simultaneously our problem is much bigger than an expense problem. It’s an income problem. Preventing costs does not help us. The only way out is to earn more income. The truth is, creating income may actually COST money. To create income we must promote ourselves and our talents to others. This might mean buying coffee for a prospect, advertising on social media, attending a networking event, or other things that cost money. And that’s okay! Because our income is in parity with our creativity. High creativity earns high income. If you’re being creative you will earn income and you will be able to make back any money you must spend or pay off any debts you may have incurred. The effect of this is your income will immediately begin rising.

2. Spending when our income is high.

When we make a bigger than normal amount of income or have much money in the bank we tend to loosen up our spending. Things feel safe, we feel confident, and so we relax. This is why more than 70% of America is paycheck to paycheck. This is opposite of the correct response. The correct response is to penny pinch when we incur a large amount of cash. Instead of being frivolous we should economize, cut needless expenses, and refrain from future purchases. This is a good time to pay off debt or invest in yourself such that more income can be created. International business expert, Grant Cardone, calls this the “go broke” principal. The effect of this? You trim the fat and focus on the things that made you the income in the first place. You’ll end up with even more!

If your income is low, promote (even if it costs money), produce, and earn income. Don’t penny pinch. If your income is high, cut back, penny pinch, pay off debt, and invest in yourself. People are not well off financially because they do the opposite of these two things. They switch them.

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Own Your Potential!

Jerry Fetta

Jerry Fetta is a husband, son of Yahweh, Entrepreneur and owner of 5 privately held businesses. Jerry lives in Alaska with his wife and 2 dogs. His no-nonsense approach to business, finances, and life speaks truth and provides clarity to his clients and followers. His personal mission in life is to empower millions of leaders to own their God-given, ultimate potential. 

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