No matter how much you have invested in fixed deposit plans or strived to raise your income, you’ll not be able to find financial freedom if you fail to strike a balance between your income and expenses. Believe it or not, managing money is an art and it calls for considerable amount of skills and managing abilities. In addition to this, there are a handful of mistakes that every individual tend to commit which renders an obstacle in achieving complete financial freedom.
Cash
Flow Management:
Cash flow management means regulating the in and out
flow of money in a sorted way. According to the experts dealing in investment companies, you will be able
to make savings if only the amount of outflow is lesser than the amount of in flow.
Try to cut all the chances of over spending, make a disciplined habit of
writing monthly household budget so that you identify and control your out-flow
episodes very easily.
Getting
Beyond Means:
Although fulfilling every wish is an integral part of
life, yet it’s not recommendable that you achieve it by jeopardizing your
future goals. Owing to societal pressure you may choose to make some impulsive
purchases that may bring instant gratification but may be the cause of
financial dissatisfaction later on. You can easily control this behavior by
differentiating between your needs and wants. Money should be judiciously spent
on wants only when you have met all you needs including saving, fixed deposit rate or any other investment
plan.
Too
Much Burden of EMIs:
Many people choose to take loans in the face of unfavourable circumstances like stagnant income levels, increasing debt etc. However, you must consider taking loan only to satisfy your needs and not your wants. Home loan, vehicle loan can be deemed as necessary loan whereas taking personal loan for going on a vacation is plainly unimportant. Interest rate on personal loan is much higher compared to secure loans which are likely to lay excessive stress on your wallet. So, avoid overburdening yourself with unnecessary EMI
Many people choose to take loans in the face of unfavourable circumstances like stagnant income levels, increasing debt etc. However, you must consider taking loan only to satisfy your needs and not your wants. Home loan, vehicle loan can be deemed as necessary loan whereas taking personal loan for going on a vacation is plainly unimportant. Interest rate on personal loan is much higher compared to secure loans which are likely to lay excessive stress on your wallet. So, avoid overburdening yourself with unnecessary EMI
Instead, think of improving your income as upgrading
have always been helpful in making you earn more. This upgradation can be in
the form of a new job, new financial knowledge, or exploring new avenues like investment companies etc to earn money.
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