empty pocket

In the last few years once you notice that you get your income increase but you don’t have money in your hand, you feel like broke. Now we have one question why did this thing happen? Here is an answer

Normally we have 8 hobbits that lead you to broke.

Let’s discuss eight habits that prevent financial savings and emphasize the importance of managing finances effectively. Key points include:

Don’t Balance Income & Expense :

We all know when we get salary hike we already pre-decided expenses which lead to us on debt before we have saving or investment money. This creates scarcity mind-set. That’s we fill that we don’t have enough money to save or invest. And we show some opportunity for get profit but we don’t have capital money to invest and we lost our opportunity on our eyes.

 Regardless of income growth, if expenses increase proportionally, saving becomes difficult. Planning for future purchases or leisure activities often results in spending all the income, leaving no money saved for emergencies or investment opportunities.

Don’t start Early Saving and Investing:

We don’t save and invest from an early age. Normally we thought that what is saving = income – expenses. This is a very wrong mindset set actually expenses = investing- income, so we can plan for our future goals like an emergency fund, an extra source of income or near team expenses, etc.

 Instead of spending first and then saving what’s left, one should allocate funds for savings and investments before spending on other expenses. Consider goals for saving and use the saved money for capital to generate additional income.

Take loan on High-Interest Loans:

When we want money we get loan like personal loan, unnecessary use of credit card, loan on credit card, late payment of loan or credit cards. This leads our income west on interest.  Sometimes we get medical expenses hits or unplanned travel this all leads to debt that’s why we need emergency fund.

 Avoid taking high-interest personal loans or using credit cards without timely payments, as interest can consume income. Planning for emergencies and unexpected expenses can prevent the need for such loans.

Don’t have an Emergency Fund:

Having an emergency fund equivalent to six months of fixed expenses provides financial security against unforeseen circumstances like job loss or medical emergencies.

Habit of saving

Avoid habits that can lead to financial instability, such as not having an emergency fund or taking on high-interest loans. Instead, set savings goals and use the saved money as capital to generate additional income. It is important to plan for emergencies and unexpected expenses to avoid the need for costly loans or credit card debt.

Due to this fund you can free for at list six month if you not get paid. And you have cousin for any kind of financially emergency which have high potential to drain your money, disturb your future plan and goal, so 1st make good amount of emergency fund.

Don’t buy Health Insurance:

Yes, we have to pay insurance premium every year but due to this you get your major expenses for free on medical. Buying health insurance is biggest

Investing in health insurance protects against significant expenses from unplanned surgeries or health issues, saving long-term financial planning from being disrupted.

Habit of Eating Out:

After UPI payment system every one spending at least 100/- RS on every day. We just think its not Big amount but Its is average 3000/- RS on month which is big one. So think before you spend.

Regular expenditure on dining out can add up significantly over time.

The money saved from minimizing such expenses can be invested, generating additional income.

Habit of Spending to Show Off:

As per finance expert you have money don’t show to other real wealth is having money on your hand not to showing other that how reach you are.

Always remember that don’t expenses more than income.

Spending excessively to impress others or showcase wealth is unnecessary. It’s more beneficial to live within one’s means and save the difference.

Credit Card EMI:

Now we show no cost EMI on every expensive purchases. Which is you think is not burden on you but it takes too much time to close this.

Opting for EMI on credit cards for luxury purchases ties up finances unnecessarily. Even no-cost EMIs come with hidden charges like GST. Saving for purchases instead of relying on instalments keeps financial plans intact.

Here by following these guidelines, individuals can avoid increased expenses despite rising incomes and focus on intentional and mindful spending aligned with personal financial goals.

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