Unable to realise your financial dreams? Overlooked spending habits may be the culprit. Read on!
Today’s youth has brought about a refreshing change in the way things are done. It is indeed heartening to see newer and more adventurous ways of living coming about. While this evolution is a breath of fresh air, it has its pros and cons, especially when it comes to finance.
If you’ve been wondering why your financial plan hasn’t shaped up the way it did on paper, there are some lifestyle-related habits that may be barring you from executing it correctly. Here’s our list of modern habits that may be hurting your finances.
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Relying Heavily On Restaurant Food
With the young generation deeply invested in career aspects, it can get really difficult for them to make time for household activities like cooking, and with food delivery apps at their fingertips, ordering in becomes the go-to fix for meals.
While this is fine every now and then, one should realise how much money is going into each meal. Obviously, ordering in every other day can leave you short of cash. To minimise the impact here, an individual (doesn’t matter if it’s a man or a woman) must either get into the habit of cooking on the weekends or best, hire a cook. You’ll be surprised how much you’ll save on food expenses once you fix a cook for your home. Plus, you’ll save yourself from the dangers of eating rich, restaurant food too often.
Additional Reading: Time To Review Your Financial Plan for 2019
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Chilling Out At The Most Popular Joints
Of course it’s fun to hit the most happening pub in town when you’re celebrating something significant, but does fun really have to equate to a good time at a fancy place. A lot of millennials love going all out on the weekends by hopping across their town’s most popular pubs and restaurants. Due to their popularity, these places are obviously overpriced, so frequenting any one of these joints is most certainly going to eat a lot of your money. The trick to minimising this lies in how good you are at sniffing out cool places that have a great ambience but do not charge you a bomb. If you spend time to think out of the box, you’ll soon find yourself an ideal place to have fun and save on weekend expenses, big time!
Additional Reading: Are You Saving Enough For Your Retirement? Find Out!
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Paying Just The Minimum Due Amount On Your Credit Card
Ah, the minimum due, it sure looks friendly and easy, doesn’t it? Truth is, nothing can substitute clearing your Credit Card bills on time. Why? Because when you just stick to paying your minimum due amount, whatever balance that sits on your card will gather interest like no tomorrow, and over time, it’ll almost feel like your outstanding amount is just not decreasing, thanks to the heaped-up interest. The best thing to do to get out of this quicksand is to pay a decent chunk of your total bill (how much ever you can) and set a target to clear your total amount as soon as you can. Trust us; it may be a little difficult once you make big payments, but with each instalment, you’re a step closer to freedom from debt.
Additional Reading: Where Did The Money Go? 10 Ways to Save More Of Your Paycheck
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“I don’t need to invest, bruh”
Now, we get that finance is not as exciting a topic as say adventure sports, but letting your savings hang in your bank account may not be the best way to optimise your savings. The trick is to stop taking finance terms like “investment” or “tax savings” for granted and understand how these things can really help you live your life better in the future.
Instead of letting your heap of savings lie in your account, you could either invest some money in a Mutual Fund, open up a Fixed Deposit account or even play the stock market (only if you have the required expertise and risk appetite to do so).
It’s amazing how just a little reading can give you clarity on what financial decisions are good for you. Want to set your finances straight right away? Start with a very essential good financial habit: