You just invested your first salary in the stock markets and they crashed. You wanted to avail a home loan, but unfortunately, the interest rates have gone up. You blame your luck. It seems bad luck just follows you around.
So is luck all there is to making money, or are some of your bad habits stopping you grow rich?
There is a saying, what you want to do tomorrow, do today. What you want to do today, do now. If you have to start investing in a SIP of a mutual fund, start immediately. Open your fixed deposit right away. The interest rates might fall tomorrow. So hurry up. Do not wait for tomorrow to make your investments.
Investment in equity (shares and mutual funds), are known to give very high rates of return. Few investments match the returns, you get from equity.
However, there is a major drawback of investing in equity. An investment in equity carries risk. Risk builds fear. You are frightened to invest in equity, fearing you might lose money in stocks. This fear is justified if you are 40 years of age. If you are just in your early twenties, you might want to try out an investment in equities, as you could afford to take risks at this age.
Your friends bought a new smart watch. You just cannot resist buying yourself a new smart watch. Your cousin bought a new laptop. You have to buy a new laptop.
If you keep buying new laptops, smart phones are smart watches every few months, what money will you have?
All your money goes buying the latest gadgets. How will you pay premiums on your life insurance plan? How can you avail child insurance for your child? How can you save if you have to keep breaking your fixed deposits?
If you keep living life king size, you will soon have to borrow, to make ends meet.
Remember: If you keep borrowing to make ends meet, the debt trap awaits.
You buy things you don’t need
There is a famous saying. If you buy things you don’t need, soon you will have to sell things you need. But what about all those discounts and freebies you see at retail shops? Buy one shirt, get one free. You get 50% discount on that new pair of shoes and you buy it, even though you have 4 unused pairs at home.
The same holds true for your investments. You buy a credit card just because you get a free accidental plan with it. You don’t see if you need a credit card or not. You keep your credit card idle and simply pay fees on your credit card.
What about stocks? You find cheap stocks (penny stocks), and buy them just because they are cheap. You buy these penny stocks without even doing your research.
These bad habits ensure you stay poor. Being poor has nothing to do with luck. It has all to do with your habits.
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