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7 deadly Sins of Personal Finance



1.       PRIDE:

We are the Instagram generation. How the world perceives us is much, much more important to us, than how we perceive the world. And thus it can be very easy to get caught up in an image.  Trying to maintain an air of wealth or buying things that you can’t afford (or in worse cases, you won’t need) is one of the deadliest sins of personal finances that many young people get caught up in.

2.       ENVY:

I cannot stress this enough, and the threats of falling into this trap is simply immense. But here’s a spoiler for you: COPYING WON’T MAKE YOU RICH!!

Yes, the Shiny Jaguar next door looks like a dream, but don’t forget that you’re still paying off the sedan that you bought three years ago!

Trying to keep up with your millionaire neighbours will only sink you further into debt, and remember the more conscious and aware you are of your financial potential, the smoother it will be to handle your wealth.   

3.       GLUTONNY:

Stop and think why you’re buying things. Is it because you just had a fight with your spouse, or is it because you are trying to ward off all the stress you have at your workplace? Time pass? Entertainment? Or worse – Addiction??

Hey – wait a minute – what are those dozens and dozens of sports shoes doing in your closet? And do you really need to get your hands on the new M.A.C. Selena range of lipsticks when you haven’t even snapped open the last lot that you bought?

Over consumption to the point of waste will only take a heavy toll on your budget.

4.       LUST:

Lust is a very intense, physical desire.

All of us have weaknesses. And we have ALL been at a point where we’ve been guilty of buying something that we really, really wanted but was well beyond our financial means. Lust makes no financial sense.

Yes, we understand.

But we have also come up with a way to battle this compulsive urge to buy something that you are crazy about.

The next time you see a product you can’t live without and also cannot afford (funny how the two always come together, isn’t it? ), just get home, think about it for 24 hours, and then come back to the mall if you still feel like you need to buy the product.

Chances are that the buffer timing will let your steam off, and you’ll escape the trap of intense desire.

Just remember – addictions can be expensive.

5.       WRATH:

This one is for all the emotional shoppers out there.

Do you walk into the Dior show room, or get a Louis Vuitton whenever you are an emotional wreck? Does swiping your card simply make you feel better after a fight or a workplace disturbance?

Do not let your emotions and your ego take its toll on your credit card debt or swallow up your bank balance. Just keep telling yourself that your self-worth is not determined by what you have, but what you are.

6.       GREED:

You want to know what the most important rule of finance is?

Saving!!

Yes, we understand that you worked hard for all the money that you made and it wouldn’t kill you to just keep a portion of your pay check to yourself so that you can get something that you wish for. It is easy – very easy to justify that greed and even easier to succumb to it.

That is why we suggest that you entrust this duty to someone else that you trust. Some of the ways that you can do this are as follows.

Enrol in an automatic savings plan. Invest in term plans that will give you returns. You can make the best out of the money that you save by using online insurance aggregators who can help you compare different policies. Use the maturity calculators of such sites and apps to know what you’re investing into.

7.       SLOTH:

Young professionals are always waiting to start saving for their retirement. Although it is completely justifiable that they think that their retirement is several light years away – that shouldn’t be presented as an excuse to start saving.

Look at all the retirement plans that are available online. Invest in a good retirement policy. The earlier you start, the better your retirement life will be. You can compare the pension and maturity value of the several pension policies in these portals as well.

Just remember that the thumb rule to saving is that the earlier you start, the wealthier you will be.  

Posted by

Balakarthiga M



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