Oct 22

Get Rid of the 7 Financial Evils this Festive Season

There are a few bad habits that are putting a big hole in your pocket. You can get rid of them and enjoy good credit health. A smart spending habit will bring peace of mind and keep you away from the burden of unnecessary debts.

Here are the 7 Financial evils and the ways to get rid of them:  

  • Unnecessary Spending

The unnecessary spending has proved to be a major problem for many. Individuals are lured by the attractive offers made available by the companies dealing in the different households and commercial products. At many times, people shop for the unwanted things just to take the advantage of the offers, deals, and discounts.

    How to overcome it?

    Spending within the limit is the best idea to get rid of it. Don?t make impulsive purchases. Budget limit is the alert that controls your spending.

    • Carelessness

    Laziness may prove harmful. Your money lying idle in banks will not yield good returns. It is necessary to invest your saving in the right products and at the right time.

    How to overcome it?

    You can go for SIP where the monthly investment is made automatically in mutual funds. It overcomes your laziness and carelessness problem yielding good returns on investments made.

    • Greediness

    The greed to earn higher returns can sometime prove to be very risky. You can end up losing your total investment. So it is essential to make smart investments and take wise decisions.

    How to overcome it?

    Make small investment in mutual funds, shares in the beginning. Once you gain experience increase the amount of investment as this will minimize your risks.

    • Fear in mind

    Fear in mind will never allow you make investments and your saving will lie idle in banks. Over the time it may lose value due to inflation. Develop confidence, gather information and use your savings in return yielding products offering the better certainty of capital return.

    How to overcome it?

    Unless and until you take risk, it is difficult to overcome the fear in mind restricting your desire of making investments. You can buy endowment insurance policies or insurance products that guarantee a minimum return in order to get secure returns on investments. You may start by investing in mutual funds that is predominantly invested in government securities and then diversify to funds invested in blue chip stocks and so forth.

    • Impatience

    Patience is one of the biggest virtues. Impatient behavior at many times makes an investor lose even the capital money. For good and higher returns one need to have patience. Early PF withdrawals, selling of stocks, equity fund, etc. deprive you from earning higher returns.   

    How to overcome it?

    Be patient. Do not make hasty decisions. Remain invested for long. Returns over a longer term horizon is much more stable and predictable compared to short term guesswork.

    • Blind faith

    Having blind faith on sales person or relationship managers may disappoint you. There are many instances of mis-selling by sales persons which make you lose your hard earned money. They take the advantage of your blind faith and target innocent customers.

    How to overcome it?

    Spend time on researching about the different investment options, risks involved, returns expected for the better decisions. Make comparison, read terms and conditions before signing any document for investment purpose. Listen to everyone but ultimately take your own decision. Don?t hesitate to say no in case you are not confident about the investment product being insisted by the sales person.

    • Longingness

    Fraudsters take the advantage of your desire to earn more in less time. To gain more benefit in minimum duration and investments. This temptation to make fast money makes even the experienced and qualified person end up with disappointment.

    How to overcome it?

    Do not believe the frauds who promise you money just like that, for doing nothing. No one will share his fortune with you. Use your credit cards smartly. Do not share your card details. Never share your confidential information with any person.

    The above discussed 7 financial evils are the major cause of your bad credit health. Overcome these evils with the ways suggested here this festive season and earn peace of mind.

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