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Posted by on Mar 2, 2016 in Financial planning | 0 comments

Do you waste your money like this?

We all strive hard to make money and it is very important that we learn how to manage it or else, after a period of time, you will come to an exhaustion point where even after spending so many years working hard, you still lack enough money to take care of your needs. It is a very painful situation to be in, trust me.

With little adjustments in our lifestyle and spending habits, we can at least have the satisfaction that we didn’t spend money without a genuine need. The guilty feeling that you have after splurging your money on something unnecessary and unworthy would continue to plague you for long. I want to take you through certain things that we all do and thereby waste money without even bothering about it.

  1. House interiors and furniture – I agree that a decent looking interior and comfortable furniture is a necessity, but the problem arises when you go beyond your means and try to set up your home like the one which you see in the movies or mimic the homes of movie stars and industrialists. Never try to make your home like a corporate office. You will waste a lot of money for sure.
  2. Eating at high end restaurants – Taste and quality of food is very important and not the setup in which you eat, though a decent environment is desirable. The problem is when you visit one of those hi-fi restaurant that sell a 50 rs food item for 300 rs. They don’t charge for the food but for the ambiance and interiors for which they had invested a lot. You can do this once in a while, but not regularly.
  3. Costliest branded clothing – Decent looking and fitting clothes are a pressing necessity. Many of us go for branded clothing for the consistent experience they provide like the fitting, quality etc. Have you realized that there is a low end as well as high end priced clothes in the same brand itself and which one do you end up buying? You may wear a pair of dress not more than 50 times before throwing it off and if you end up paying a huge sum of money on that, it is never going to help your financial cause. An exception can be considered when you purchase clothes for special occasions which is once in a while.
  4. Junk food – All the money that you spend in the Quick Service Restaurants aka junk food is injurious to both your pockets as well as health. In one way, your money goes down the drain very quickly and on the other hand, you equip yourself with non-communicable diseases that will make sure you spend the remaining money for your hospital visits. Is spending too money on junk food worth a case?
  5. Costliest gadgets – Again, look at it from the necessity aspect rather than the brand and pricey nature. Don’t think that your status increases if you possess a gadget of certain brand and price. Be wise with your investment on electronic gadgets as their value depreciates very fast
  6. Cosmetics – Look at the need and spend accordingly. The market is infested with plethora of fairness creams, moisturizing lotions etc. If you visit a supermarket, you are tempted to purchase everything in this segment as if it will change your appearance in a whisker
  7. Purchases at shopping malls – You are actually paying for their infrastructure investment rather than for the value of the goods you purchase
  8. Marriage – Throwing away money just for the sake of attracting others and maintaining status in the society. If you plunge deep in debt, those who ate at your family wedding will laugh at your fate
  9. Jewels – In India, women are in fact valued by the amount of jewels that they carry on themselves. Is this really needed? Always remember, too much of anything is good for nothing
  10. Automobiles – You need to travel from location A to B in a safe and comfortable manner. Anything above this is a luxury. Think twice before going for a loan on that car that you have decided to purchase to show off to your neighborhood!

Let me close this with a Warren Buffet masterpiece

“If you buy things you don’t need, then you will have to sell things you need”
                        -Warren Buffet

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