Illusion of wealth while being under debt

by Ankita Deuri

Being rich and successful. That’s the dream! Our whole life has passed by trying to look for ways to achieve these two goals. But to be honest, reaching this lifestyle isn’t always easy. Hard work matters and a lot of dedication is needed to achieve these milestones. Once we get accustomed to lifestyle, it is quite hard to maintain that status. Money doesn’t always stay the way it should. There is still inflation and fluctuations with finance and keeping up with a particular lifestyle under peer pressure makes it even harder for us to maintain that wealth the way it should be.

Making money and saving money are two different aspects of financial matters in a person’s life. We can make money every month but keeping that money from going to waste and keeping a watch on your budget every month is a task that not everyone likes undertaking. As a human tendency, we have a habit of nesting and storing things for rainy days. In that emotion, most of the times, many of us forget where to stop, where to draw the line and where not to overspend. Let us sift through some such habits and attributes that project the illusion of wealth and success when in actuality it can make you go under soars of debt and let’s see how to plan better so this doesn’t affect you.

 

  1. Time to break up with that plastic money: Credit cards are one of the potent causes of unlimited debt in a person’s life. Though these cards come in very handy at the time of emergencies, as money is readily available to you in the form of credit, people tend to forget the actual use of it and swipe it for almost every purchase they make. This keeps increasing their credit which they later are most likely unable to pay. By maintaining and paying the minimum due amount every month, we keep the card active, but the remaining credit keeps on building, sending us to our upcoming doom of uncountable debt.

How to cure it: Keep its use to the minimal (only for emergencies) and try to clear as much of the principal amount as possible to relieve yourself from the debt build up.

 

  1. Taking care of your poor spending habit: Developing a proper spending habit is probably the hardest thing an individual has to do. But to lead a better life in the present as well as in the future where there is no shortage of money we need to fix our poor money habits. We spend on things which we later end up regretting, or sometimes we overspend on unnecessary things and do not even realize about it. We make a mindset that owning and acquiring items make us look like we are successful and are winning in our social circle, but in reality, it is only adding on to our miseries later on.

How to cure it: Develop a monthly budget and stick to it. Determine where exactly your money is going and try to fix it. Cut back on things which you don’t need. Adopt minimalism.

 

  1. Communication with your family: If you are the sole earning member of your family, it naturally becomes difficult to save much. Frugality becomes necessary. But what if the family members do not understand the situation and are not doing much to further that goal? Your financial situation is bound to deteriorate. Planning for each of the members of the family as you want may also lead to disputes and tensions.

How to work on it: Have an honest discussion with your family about your finances. How and where to save, where to cut back on spending. You and your family need to be on the same page regarding money matters.

 

  1. Control your bad habits: Sorting out bad habits isn’t easy. We are so into these habits that it becomes impossible to even tell apart sometimes. Smoking or drinking every other day, betting, overspending; these are some of the lifestyle practices that people tend to develop without even realizing their potential destruction to not only our money management but even our health.

How to curb it: Although easier said than done, try to get over these habits. Distract yourself with other engaging activities so you can overcome these vices. If you are unable to completely stop, try to decrease the use of them. Give yourself a chance and indulge in healthy practices like meditation, yoga or workout to divert your mind.

About Ankita Deuri

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