Mandeep works in a multinational company and earns 50,000 lakh per month but still he is worried about his finances. Again and again this thought comes to his mind that even when I used to earn 25 thousand in the beginning of my career, I was somehow able to meet the expenses of the month and today when I earn double that, even then the money is less.
Friends, are you able to relate to this situation of Mandeep?
Is the same happening with you – your income is increasing but still your financial problems are not ending.
Yes, it is a bitter truth that financial problems do not end just by increasing income!
But don’t worry, you are not the only person facing this problem, but many other people are also with you.
Yes, in a recent survey conducted by GOBankingRates in America, it has been found that almost half of Americans live paycheck to paycheck. Living paycheck to paycheck means that the amount of salary you get every month, they finish it all in the same month and do not save anything.
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Why Do We Face Financial Issues?
So, today in this article we will know 7 such things due to which you are always worried about your finances despite having a good income:
1. You do not do Financial Planning
In my previous article 7 steps of Financial planning for families I have already told the importance of financial planning. Unfortunately, most people do not do this important thing, especially in the early days of their career, and that is why they are often faced with financial issues.
Do read this article and take some step in this direction soon.
Suggested Reading: Financial Planning For Women: 10 Money Management Tips
1. You do not do Financial Planning
In my previous article 7 steps of Financial planning for families I have already told the importance of financial planning. Unfortunately, most people do not do this important thing, especially in the early days of their career, and that is why they are often faced with financial issues.
Do read this article and take some step in this direction soon.
Suggested Reading: Financial Planning For Women: 10 Money Management Tips
2. You don't pay yourself first
As soon as the salary comes, you should first pay yourself for your hard work of one month. That is, you should take out some money and keep it aside and spend the rest of the money. For example: You can start a saving scheme on the date 2-3 days after your salary is credited, and reward yourself for your hard work.
I have found that doing any such saving arrangement in which money is automatically deducted from your account is correct. If this does not happen, the money gets spent somewhere else.
3. You give more importance to today's happiness than tomorrow's needs
Instead of saving Rs 5,000, you believe in buying a new mobile worth Rs 15,000, that too when your old mobile is perfect! The philosophy of “Living in the moment” is applicable only when “finances for the future” are intact. But you believe in the first part only and forget the second!
Do not do this, it is very important to make a balance between these two. Doing this can save you from a lot of financial stress.
Always remember this thing of Warren Buffet, one of the world’s most successful investors-
“Do not save what is left after spending, but spend what is left after saving.”
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4. You don't separate 'wants' from 'needs'
Need: Something without which work cannot be done.
Want: Something that you wish you had but can do without.
People who are worried about finances make their want a need as well. For example: Genuinely you need a car, but instead of a hatchback you can comfortably afford, you make an SUV your need and then pay its loan for years.
Never take anything just for show off, doing so can give you happiness for a few days but in the long term it will only create problems for you.
Read: Want to buy a bike? Personal loan, Bike Loan, Credit Card or Savings?
5. You are a spendaholic
You are financially worried because you enjoy spending.There is some or the other thing lying in every corner of your house which is the result of impulse buying. Your wardrobe is full of such clothes which you have hardly worn once or twice. There are such mobile phones lying in your drawer which you have not used even for a year. You enjoy eating and drinking outside so much that you eat out twice a week or order it at home.
If you want a financially stable life, then don’t be a spendaholic, be frugal, that is, be a spender thoughtfully.
6. You spend more than you earn
How is this possible? Exactly, 3-3 credit cards lying in your pocket! In fact, you save a large part of the salary for the credit card bill of the last month only. And start this month with credit card purchases. In this way you always get stuck in a debt-trap.
It would be better if you do not keep a credit card at all, but if you have to keep one, keep only one and that too not in your wallet, and use it only and only in emergency.
Read: How To Get Rid Of Debt: 8 Ways To Get Out Of Debt Quickly
7. You can't say no!
As an individual you understand the importance of money but you are not able to say “no” to your family members. You go to watch any movie at the behest of your spouse… you are unable to say no to your child’s insistence and buy expensive toys.
By doing this, you are definitely giving them some happiness today, but you should learn to say “no” for their betterment so that not only the present but also the future is full of happiness. And keep one more bitter thing in your mind, if there is any money problem in future, then your family members will forget all those entertaining moments and somewhere you will be held responsible for this situation.
That’s why you have to learn to say “no” sometimes for the happiness of yourself and your family.
That’s why saving more money and managing your money properly is the only solution to the financial issues.
And if you were not doing this till now then it is okay, past cannot be changed…but future can always be made better. And to make the future financially sound, one thing that I emphasize a lot is Savings.
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How Savings Can Reduce Or Eliminate Your Financial Issues?
I have seen and experienced myself that the best way to save money is to setup such a system that every month the money is automatically deducted from our account and invested somewhere.
You can start a saving scheme with as little as Rs.200. with Money Club. Money Club is a saving and lending platform where individuals pool money with verified peers. It is the first ever social network dedicated to helping members earn money, save money and support one another financially. Money Club enables members to borrow for expenses, make miscellaneous payments, or avail funds for a contingency arising from adverse circumstances. For members wanting to save and earn interest, it ensures safety of principal and transparency in operations.
Not only will you gain access to a supportive network of like-minded individuals, but you’ll also have the opportunity to earn money by referring your friends and family to our community.
Personally for me this has been the best way to save money and grow them. Investing in this platform gives better returns than any bank FD, RD, or insurance plan. Along with this, there is also the flexibility to withdraw your money anytime.
Therefore, you must download the Money Club App and start saving. I assure you that this one step taken by you will reduce or eliminate your financial issues to a great extent. So, just go for it!
You can also join Financial Saathi, our financial community and discover the power of a supportive network!
Save money…invest wisely with Money Club!
Read: Know Your Money Club platform Journey On The Money Club App
