Don’t Fake It! Be Honest With Your Finances

By | May 21, 2017

Don’t Fake It! Be Honest With Your Finances

The recent outpouring of disgruntled Beliebers on social media saw a large number of Indian Twitterati and Facebook users go into literal meltdown. Many of them vented their frustrations at the singer for apparently lip-syncing his way through his recent gig in Mumbai, which left them feeling let down and disillusioned, especially considering the exorbitant ticket prices.

While those who have always taken it upon themselves to poke fun at anything remotely Justin Bieber-related ended up with sore fingers from constantly typing ‘I told you so’ all through the night, the financial aftermath for many fans who made it for the show made for grim reading.

It was a tale of maxed out Credit Cards, shattered budgets and huge debts. Sure, we definitely sympathise with what you went through if you were one of them, but a scenario like this could have been avoided if you were honest with your finances.

Ironically, it was a tale of ‘faking it’ from both ends. The only difference is one of the parties in question headed back to his mansion to sip on pina coladas, while many from the other side had to make their way through massive traffic jams to catch their flights or trains back home.

Sadly, the only thing waiting for them back at home were huge Credit Card bills, empty Savings Accounts and missed loan EMIs.

Additional Reading: The Stack Method: An Effective And Speedy Way To Clear Your Debts

So, how exactly can you get away from the temptation of spending tons of money and regretting it almost immediately, especially if you aren’t satisfied with what you’ve paid for?

Well, it all boils down to being honest with yourself and your financial situation. It’s all about admitting that you have a problem and you don’t have the means to splurge on anything else until you’ve tackled the problem at hand.

Here are a few things you need to do to keep yourself firmly away from the soul draining abyss of financial regret:

  • Clear Your Dues

This is something we just can’t stress enough. Before you even THINK about spending massive amounts of money on something as expensive as a Justin Bieber concert, especially after factoring in all the travel, food, accommodation and other costs, you should clear any and all outstanding dues that you might have accumulated over time.

For example, if you already have a massive Credit Card debt to your name, the last thing you should be doing is whipping out your card every time you feel the urge to spend on something that catches your fancy.

It goes without saying that piling more debt on top of existing debt could plunge your finances into a state from which recovery over the short term could be next to impossible. So, when you’re faced with something as tempting as a major event that everyone and their dog is raving about, lock yourself away until it passes and concentrate on clearing your debts one by one.

And remember to attack your Credit Card dues first, because of the high interest that comes with them. The longer you take to pay back your Credit Card debts, the longer you’ll stay in debt. It’s a vicious cycle that you’ll definitely want to break away from.

Additional Reading: How To Repay Your Debts Using The Snowball Method

  • Start Saving

If you can’t seem to stop spending without keeping anything aside for a rainy day, you’ve got a bit of a problem. You need to sit yourself down and admit that you have trouble saving money. Most people refuse to admit that they can’t save. They always tend to say that they can save any time they want, or that they’ll start saving after a certain date, which almost always never comes.

Make a habit of saving at least 20% of your salary every month. You could invest it in a Mutual Fund and watch it grow over time, provided market conditions are in your favour. You could even open a PPF account, which will keep you money safe and guarantee you returns over a substantial period of time.

The bottom line is, you need to first come clean with yourself when it comes to your spending habits and then work your way up from there.

Additional Reading: 5 Ways To Stay Committed To Your Savings Goal

  • Learn To Say No

When it comes to spending money most people have serious trouble saying ‘No!’. Regardless of whether it has to do with shopping for fancy electronic gadgets, designer clothes, expensive night outs or even over-indulgent vacations, it almost always is a case of ‘keeping up with the Joneses’.

If you happen to be one of those people who tends to spend simply to keep up appearances, then you need to tell yourself that it really isn’t worth damaging your financial future for. Just because your friends spend money like it’s going out of style doesn’t mean you need to follow suit.

You could start slow by going out every other weekend instead of every weekend, or by picking up electronics or clothes during a sale. It all boils down to willpower. The more you put your foot down and tell yourself that you’ll stop spending beyond your means, the faster you’ll get your finances in order.

Additional Reading: How To Get Over Your Shopping Addiction

That’s all it really takes. Sure, it sounds quite simple, but executing it is the hard part. However, remember that if you really do have trouble with money, then the first step is admitting you have a problem. Realisation is the first step towards finding a solution after all.

Honesty really is the best policy, especially when it comes to your finances, so make sure you heed this advice and stay ahead of the curve with regards to your money.

Additional Reading: Don’t Stop Beliebing! Make Your Financial Journey Count One Way Or Another

If you happen to find yourself in the midst of a financial crisis, or you’re bang in the middle of a severe cash shortage due to an unexpected emergency, then maybe, you could consider taking out a Personal Loan to tide you over. We’ve got some great deals for you, so check them out.

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