Are you a person who always pay bills after due date?
Are you the person who spend the money before having it in account?
Do you spend money till the account hits minimum balance?
Are you the person who always crave to shop?
Are you the person who always puts purchase on EMI?
If you are the person for this is a normal routine then we suggest you should have a break & have thought over a cup of coffee.
Have you ever thought of how these small habits badly affect your financial growth? Let’s analyze…
- Paying Bills Late-
Late fees are expensive and can cost you as much as 10-15% of your monthly bill. If calculated overall you pay almost 500-1000 extra bucks unnecessarily.
That’s an additional money that could have been used to pay off debt or invest in your future.
Also, frequently paying bills late damages your credit score, and leads to paying higher interest rates on future credit lines.
- Spending Money Before You Have It–
Something like treating yourself to an expensive dinner may seem small, but when you consider the interest you will incur paying it off, it could be the expense that finally puts you over the edge.
Stop spending the money that you expect to receive from your next paycheck before it clears the bank.
Unless it’s an emergency, always avoid spending money you don’t have!
- Paying Bank Fees-
Bank fees like insufficient funds fees for a savings account can cost, on average, 500 rupees for each occurrence. Even just one each month can cost over 6000 rupees by the end of the year.
This 500 rupees could have been saved & invested in monthly SIP which will lead to good corpus amount for your future goals after 15-20 years.
Just because you have the money to buy something doesn’t mean you should buy it.
Even if you’re not using credit, draining your bank account so you’re living from paycheck to paycheck will make your life very stressful.
Try intentionally allocating a portion of your paycheck to savings to build up an economic safety net; this will give you peace-of-mind by knowing that you’re financially secure.
- Taking out Unnecessary Loans-
Ifyou have to take out loans or use credit cards regularly just to cover your bills, you are only making matters worse.
By consistently using credit or putting purchases on EMI, you are also collecting more interest every month, which leads further into debt.
Now the question is though you are aware of these bad habits but still not able to avoid it, Why??
What will happen If you seriously put efforts to avoid these mistakes? What will you achieve?
So here is the reward for your efforts;
Once you begin to put an end to the vicious cycle of mismanaging your finances, you will quickly start to notice the positive effects of financial freedom.
You will be able to put aside more money for achieving your financial goals.
Having your financial life is in order will allow you to begin feeling more relaxed, focused, and ultimately less stressed out.
These positive effects can carry over into the workplace, improve your health, and ultimately lead to a better quality of life.
Let’s make it as a New year resolution for 209.
Starting a new year 2019, Aarya Consulting is committed to change your financial habits for better, ultimately helps you live a stress free financial life forever…Stay tuned for our next blog.
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