Tired of all that financial advice on how to become rich? For a change let’s talk on what messes up your financial life. What does this mean? Simple….Let’s talk on what makes you poor. No person anywhere in the World, wants to be poor. The sad part…You just might be doing things that make you poor and ensure you stay there.
Let’s take a look at the five things you do that mess up your financial life.
You love electronic gadgets. Every day or may be every week, a new smart phone or a tablet or a laptop is launched. Then there are smart TV’s and HDTV’s which cost a bomb. Most of these electronic gadgets have features which you never use and never will use. You have to pay for them, anyway. But there is a small problem. You need to show all your friends, you are a rich man. Your friend buys the latest smart phone which costs over INR 50,000. You want it too. Your cousin has bought a HDTV which costs over a lakh. You have to have one too. This is when you must remember this saying “If you buy things you do not need, you will soon be selling things you need”.
So is buying electronic gadgets wrong? No, definitely not. You must buy only those electronic gadgets which you really need and at a price you can afford.
You live in the past
You have availed a personal loan and you are struggling to repay it. You have invested your money in the stock market and suffered a heavy loss. Every morning you get up cursing yourself…. Oh why did I take that personal loan? Why did I not learn about stocks before investing in them? It is too late crying over spilt milk. First acknowledge that you have a problem. Then find a way of solving the problem. Think solutions not problems.
Are you waiting for your parents, brother, friends or cousins to get you out of the financial mess, you have got yourself into? This might take a very long time. You need to take charge of your life and your finances. The only person who can get you out of the financial mess you have fallen into, is yourself.
You attend a family party. Your cousin advices you on investing in stocks. Invest in stocks he tells you….This is the best thing that has happened to me, he says. Your uncle tells you….Go for Ulips. Your friend advices you to buy a plot of land. Having heard the financial life experiences of your friend, uncle, cousin and countless other people on how to manage money, you feel you know it all. You have after all heard all the financial mistakes so many people have committed. You need to understand that different people have different financial needs. How can you follow a financial plan which is suited to someone else’s needs?
The stock markets have fallen. You want to invest in an SIP, of a good equity mutual fund. You keep saying “I will invest in the SIP tomorrow”. Unfortunately tomorrow never comes. Now the stock market has gone up. You are forced to invest in the SIP of the equity mutual fund, when stock markets are at higher levels. You have missed a golden opportunity.
Remember: Procrastination is the enemy of success.
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