FINANCIAL TRAPS TO AVOID

FINANCIAL TRAPS TO AVOID

There are some common lifestyle traps that prevent people from being able to save and invest in their financial future. If you are someone who is ambitious and wants to make sure that you don’t run our of money, you have to avoid these following traps:

  • To buy/ rent a house in the main Capital city, close to all the hustle and bustle. This typically comes at a very premium price. A lot of people want to enjoy this seductive lifestyle. Unfortunately, this happens temporarily. Subsequently, you realise that nearly 50% of your income going only to sustain this kind of a lifestyle and housing costs and this doesn’t enable you to put aside money for savings.
  • Buy expensive cars- One should always think of buying expensive cars only when you have put aside a substantial portion of your income in your investments. So, after you have created this wealth or you have a good plan of regularly putting aside a share of your income towards investments, one may plan to buy a nice luxury car.
  • To spend a lot on eating out in fancy restaurants- It’s a temporary feeling of success if overdone. This hinders the growth of your net worth as excessive spending for these temporary pleasures erodes a lot of your income portion and doesn’t give cushion to your wealth. It gives a debilitating effect on your financial confidence.
  • To buy designer clothes-wearing designer clothes makes one feel like you are successful. But again, novelty wears out very quickly. It is better to buy well fitted and high-quality clothes and should not get addicted to spend a lot of their disposable income in these designer purchases.

THE FACT IS ONE SHOULD BE WEALTHY AND NOT JUST LOOK WEALTHY!