10 Demons to Kill This Dussehra to Lead a Happy Financial Life
Dussehra, the festival of celebrating good’s win over evil is round the corner. Like every Hindu festival, Dussehra too has something to teach all of us. The story of Ramayana shows us how Lord Rama achieved victory over Ravana, the demon king and made the good triumph over evil.
Ravana, who was an extremely wealthy and knowledgeable man, let his demons control his life and mind. This lead to a great war and his demise.
Similarly, we all have demons within us that can lead to our destruction if we don’t kill them immediately. Here, we have brought a list of 10 such demons that most of us have but don’t pay attention to. To live a financially happy and debt-free life, these demons must be killed before it gets too late get hold of them.
1. Impulsive Buying
How many clothes do you have in your wardrobe that you purchased just because they were on sale, but have never worn them?
Did you buy a microwave a long ago just because you saw its advertisement on TV and the deal was hard to ignore, but you never really wanted it?
What about those pair of shoes you ordered online but didn’t find them good enough to be worn on any occasion because they are too casual for office and too formal for parties?
Many of us have such shopping addiction that we must avoid. This impulsive purchase decision if avoided can save you a lot of money each year.
Next time you see a board outside your favourite shopping outlet saying ‘Buy 1 Get 1 Free’ or ‘Flat 50% off’ or
‘Shop for Rs. 5000 and pay Rs. 4000 only’, keep your impulsive shopper demon under control and think carefully if you actually need that stuff or not.
2. Taking too many unsecured loans
Okay! We all go through a financial crisis at some point in our lives. And to cater to those emergency situations, we seek the help of unsecured loans such as Personal Loan.
Although Applying for Personal Loan seems to be a great option to solve your short-term financial exigencies, however, making it a habit to be dependent on unsecured loans all the time is not a good habit and needs to be avoided at any cost.
3. Living a luxurious life on credit
It is natural to envy our peers or relatives who are enjoying a luxurious lifestyle. However, that doesn’t mean you have to imitate them to show your worth in the society.
Many people love to showcase others how happening life they have, but, are actually enjoying that luxury on credit. They often purchase and use multiple Credit Cards (more than they can afford to handle conveniently) to maintain this lifestyle.
If you have such an addiction, it’s high time to kill that demon and stay in control of your finances right now than be in debt and regret later. Those reward points may look tempting to shop for more, however, make a habit and never buy more than you can afford to pay for.
4. Not paying your credit card bills on time
Credit Cards are an amazing and instant way to transact. They are easy to use and save you from the effort of carrying hard cash everywhere you go. On top of that, these cards give you redeemable reward points, offers, discounts and facility to shop now and pay later. However, if you are in a habit to delay your Online Credit Card payments, this habit can lead you into great trouble ahead. Instead of piling up a big debt burden, it’s always recommended to pay your Credit Card bills timely to continue enjoying the benefits and rewards being offered by the card issuer.
5. Only making the minimum credit card payment
Paying the minimum balance on your card every month does not imply that you are getting out of debt. Minimum payment is usually about 4%-6% of your total balance. This could mean that you are not just staying in debt, but accruing more interest as well. So, next time when you go through your Credit Card statement, just remember that you have to pay the entire balance and not just the amount mentioned under “minimum payment”.
6. Depending on your friends and family to sort out your financial troubles
We all have atleast one such friend who often seeks monetary help from us. Isn’t it? And it’s not because they don’t earn enough to live comfortably financially, but because they always spend more than they earn and then struggle to manage their budget at the end of each month. During those struggling days, they depend on their financially stable friends to sort out their financial troubles like to pay their Credit Card bills, mobile bills, and so on. It’s a dangerous habit that needs to be destroyed as soon as possible.
7. Taking a new credit to pay off an existing credit
So you used multiple Credit Cards to fund your impulsive buying decisions, and now when you were struggling for clearing off your debt, you took a Personal Loan to pay off those Credit Card bills. Well, if you did it to cope up with an emergency like paying medical bills, and so on, it was a wise idea; however, if it was another impulsive decision, you must think about it carefully. Taking more credit to pay off existing debt is another sign of drowning yourself into a sea of debt. Pay attention to your spending habits and learn to differentiate between your needs and wants before spending every penny.
8. Not taking your job seriously
Many youngsters have this “Live young, life free”attitude, which is not wrong, however, living free doesn’t mean being careless about your career and future right? Career and enjoyment should go hand in hand. Not taking your job seriously right now can lead to a major drawback for your career later. While your friends will be earning a good salary, you will have to struggle hard to make ends meet. Hence, career planning must be taken care of when you are still young and capable of taking risks.
9. Not paying heed to your credit score
Do you know your credit score? Have you ever heard about this term before? This two letter word plays a major role in deciding your Personal Loan eligibility or creditworthiness for other loans or Credit Cards. It is a 3-digit number (between 300 to 900) that shows your past repayment record and creditworthiness for future loans to the lender.
If you apply for a Personal Loan, Credit Card or any other form of credit, you need to have a good credit score (750 or above) for approval of your credit request. You can check your credit score for free (one time) from official websites of credit bureaus like Experian, CIBIL, and so on.
10. Not planning your budget
Most of our financial problems occur because we don’t plan our budget ahead. A well-created plan can make a huge difference to your life.
You don’t need any calculator or tool to do this. All you need to do is to make a list of all your monthly expenses (utility bills, transportation expenses, rent, Credit Card bills, debt obligation, and so on) and income (salary, bonus, incentive, profit, and so on). If you have a surplus, keep a small amount for miscellaneous expenses like shopping, vacation, and so on, and make a habit to save a portion of your income each month (in the form of deposits, mutual funds, employee provident fund, and others).
It’s a good habit to plan and track your budget on a regular basis to keep your finances under control.
These were 10 demons that should not be a part of your lives and must be killed before they turn more dangerous for you and your finances. On the occasion of Dussehra, let’s get rid of your demons for once and all, and let the goodness of financial management rule over the evil of careless spending.
Wish you all a Happy Dussehra!
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