Top 5 reasons you stay broke!
You got to read this!
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It’s the first week of a month, and you wake up a day, hearing the sound of a text message. The message says that your salary has been credited. But, then you hear the sound of 3–4 other messages. Those messages say that certain amounts have been debited for rent, car, insurance, and suddenly your bank balance seems somewhat similar to NOTHING!
How did this happen? Here are some reasons we have sorted out —
- You do not plan your spending — It may have happened that you have frequented take-outs, or maybe spent money on clothes. Did you? This is why you got to learn how to budget your expenses. Money, always, seems like slipping from your hands. Take charge of this right now! Write down how you need to spend the remaining money.
- You borrow for everything — We know this might have triggered you, but you do not have to borrow your parents’ money for that Gucci bag, which seems out of bounds for you. This leaves you to ask for money to afford food. Doesn’t it? What happens next? You buy stuff with your credit card. The interest and credit piles up next. VOILA! You are in a pile of debt.
- You procrastinate about budgeting — Building money means saving money. You would not wake up one day and see a pile of cash on your bedside. Sorry, if we shattered your dream. In this criteria, your income doesn’t matter, what matters is your ability to save. Even saving 10 bucks while paid, is ENOUGH!
- You got your competitive mode on — Take it from us that it’s not up to you to impress everyone you meet WITH MONEY. If you do this, add it to the list where you are counting the possibilities of being broke. Comparing yourself with others always would land you into a deep pit of guilt, and here, debt.
- You overspend — This is said in touch with the last one. While you compete with others, you find yourself overspending. This lands you in debt, and probably aids you in the above 4 factors. When you overspend, it is possible that you do not budget, you procrastinate budgeting, then when you already have your competitive mode on, you start borrowing. Stop it. Thank you.
Relate to the story we narrated at the start, and think about budgeting of what is left of your salary. We are obvious that you would have probably panicked at every point of the blog.
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Author: Rajani Rajagopal