Toxic Financial Behaviour And How To Fix It

By | July 5, 2020

Is staying financially healthy your top priority? Well, it should be, especially during these trying times. Here’s some toxic behaviour you need to avoid.

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One of the most important keys to lead a healthy financial life is the mantra that the rich and successful people follow: Do not save what is left after spending, but spend what is left after saving. The major mistake of the financially not-so-healthy people is that they tend to spend first and then save a few bucks, if possible.

And that’s not the only behaviour affecting your financial health. Let’s take a look at the common behaviours that negatively affect your financial health and how you can mend it. Ready?

Financial goals, what?

Does the term laid-back describe you the best? Being laid-back is not all that bad as long as you don’t apply the same attitude to your finances. Yes, really! Whenever your salary is credited, do you just go with the flow every month, without listing down your expenses and investments?

Living a life without any financial goals and financial plans is absolutely wasteful. Also, if you are investing but aimlessly, you aren’t quite on the right financial track, buddy. If you wish to be successful, you need to set financial goals, chalk out financial plans and work on them, so that you can achieve what you wish to.

You can seek help from a professional financial advisor to help you set your financial goals. You should certainly set a daily spend limit and follow it so that you can invest smartly. While investing, make sure that you have a diverse portfolio. So, even if one of your investments doesn’t work out, you will have another to fall back on.

Trust the advice of the financial professionals instead of your close ones, as the former are more likely to help you achieve your financial goals as planned.

If you relate to one or more of the above mentioned points, you certainly need to turn the tables now. It’s never too late, trust us. To sum up everything, you need to stop comparing yourself to others, set financial goals, chalk out a plan, follow it, control the urge to shop, resist the temptation to give in to your cravings and you will save a lot of money. It’s that simple.

Additional Reading: How Late Payments Can Leave You Credit-Sore!

Credit Card Madness

Is debt a part of your day-to-day life? Be it Credit Card debt or unpaid Personal Loan EMI, is your debt piling up? If on your payday the only thing that you think about is how you are going to clear all the debt, something is terribly wrong with the way you are handling your finances. If you swipe your Credit Card all the time, even for the things you don’t really need, the best solution is to practice restraint.

Believe it or not, debt is the worst poverty. Someone has rightly said that it’s better to go to bed hungry than to wake up in debt. Of course, it’s absolutely fine to own a Credit Card, however, you have to keep your credit utilisation ratio in check.

Taking a Personal Loan during an emergency is the most normal thing to do. However, you have to repay what you borrowed. So, not paying your EMIs and piling up your debt is a big NO. So, you have to learn to be a wise Credit Card user so that your debt doesn’t increase. And you have to clear off your Personal Loan EMIs in order to live a debt-free life. If you plan it all, nothing is impossible.

Additional Reading: Should You Hire A Financial Adviser?

Eating Out

With urbanisation and modernisation, dining out has become a habit among everyone. Hanging out with colleagues post-office and having junk food are the norms of a city life. It’s reduced considerably due to COVID-19, but things will normalise again. Even college students live a life like this.

With so many food and delivery apps available on your smartphones, unhealthy and expensive food delivery is only a click away. With everything available so easily, one tends to become lazy and spend more. If you wish to save, all of this has to stop, right now!

The need to hang out with friends is only natural. However, eat at home before you step out to meet anyone. Planning to drink with your buddies? How about a house party instead of going to that high-end restaurant with an even higher tax amount?

Uninstall the food apps. They are not a need but rather the means to empty your bank account. Pamper yourself once in a while so that you don’t give in to the old habit of spending.


Do you belong to shopaholics anonymous? Whenever you feel low, do you go shopping? Or if there’s a new store launch, are you likely to be present there? If a clothing line launches a new collection, do you feel the utmost need to have it in your closet? Be it cosmetics, clothing, shoes, personal care or anything under the sun, which is newly launched, you HAVE to go and check it out? If this sounds like you, you certainly need to stop all the shopping and start helping yourself!

Each time you feel the urge to shop, ask yourself a simple question, ‘do I really need it?’. If the answer is yes, go ahead and buy it. However, if you hesitate to answer that question or try to convince yourself that yes, you need it, you certainly don’t need it. It’s pretty simple.

You HAVE to learn to put your needs over wants and your finances will fall in place. You also have to block all the shopping websites so that you don’t give in to temptation. Once you start prioritising your needs and ignoring the wants, you will save a lot of money, which you can then invest in the various financial products like Fixed Deposits, Mutual Funds, Recurring Deposits, among others. Remember that your money will always look better in your bank than on your feet. Okay?

Additional Reading: The Ultimate Fitness Regime For Your Finances Is Here

Status Check

Life has become all about one’s status. And people are willing to do anything to fit in. Comparing your status, income, expenses and lifestyle to their kith and kin comes naturally to most people, these days. Wondering what we mean?

Well, in case your brother buys a sedan, you will go out of your way to get a better model than that which is certainly more expensive, even if it is out of your budget. These things apply not only for bigger things but also the smaller ones.

For example, if your sister goes on a shopping spree, you feel the need to do so yourself too. And if your best friend went on a date to the new fancy restaurant with her beau, you feel the immense need to go to a better restaurant and post on social media about it. It’s all about the likes, isn’t it?

You need to kill the desire to be better than someone else. Instead, you need a healthy competition with yourself. This will help you save a lot of money, which you would have otherwise splurged on unnecessary things. You have to learn to be happy with your life the way it is and start working towards a better life by starting to invest instead.


The number of festival celebrated in India is uncountable. And of course, the expenses incurred during each festival too. Whenever a festival is around the corner, we tend to spend extravagantly on the festivities and gifts.

What’s more? During each festive season, there are numerous sales hosted online as well as offline, which makes it extremely difficult to not shop and give in to the festive mood. In fact, festivals make you splurge on things you absolutely don’t need. Only because you see the word discount and sale, you end up splurging on things, which may not actually be at a lower price at all. The numerous emails that hit your inbox during festivals cannot be ignored, right? But we have the solution.

If you want to avoid any unnecessary expenses during a festival, it’s best to shop way before the festival. Wish to buy gifts for your close ones? Do it a month in advance so that you can avoid the craze that hits the shopping malls and shopping websites during the festive season.

Spend time with your family rather than spending time online or in the malls. You will not only get to spend quality time but you will also save a hell lot of money. Opt out of email subscriptions for shopping websites, especially just before a festival. Pretty simple, right?

Now that you seem ready to take the next step, how about exploring some financial products that you can invest in? Choose the one that best suits your needs, budget and gives good returns. Go ahead and check out our awesome offers!

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