Lead a Financially Stress Free Life
Written on Monday, July 13, 2015
By Team -Bajaj Capital
In the era of digitization, we pay, shop, order food, book tickets and do a lot more using our mobile phones.Â There has been significant rise in the comfort level and life style demands but the change has not been the same with spending pattern of an individual. Rising standards and the hassles of daily life has taken a form of debt. A person earning Rs. 50,000 a month and a person who earns Rs. 5 Lakh a month, both are equally stressed with financial burden.
There are several methods, which can help you overcome debts and become financially stress-free. Here, we are sharing few of the time-tested methods that could help you.
Always keep a record of your expenditures:
None of us would want to spend more than what we have. So, it is always important to keep a record of your monthly expenditures. It helps in cutting back when we have unexpected bills. We do not go over our budget. It is a very good exercise for starting savings and to become a frugal as we have the record of our all the expenditures at a glance. Also keep track of your credit card transactions, so you can stay within your limit. Always pay your credit card bills on time to avoid extra interest or late payment fees. You're charged interest on your balance, and that interest compounds every month on the outstanding balance that you carry. Try to avoid taking cash advances because they usually attract higher interest.
Understand the Right use of Credit Card:
Plastic Money is now the in-thing and people do not believe in keeping a wallet full of currency notes, rather then they are happy to shop just by swiping the Debit or Credit Card. This new credit card culture has given the leverage to the people to buy whatever they desire. Right use of credit card means, you should use different credit cards for your expenses instead of constantly making transactions using a single card. Make it a point to use each credit card you have once in every six month.
Not all loans are for you:
You must be getting a call from Banks and related agencies for Pre-approved personal/home/car loan. This is generally offered to people who have a clean track record of loan repayment history. You get it even if you had pre closed your earlier loan amount. You should consider opting for such loans only if you are in grave need. There are times when people take loan just because it was offered to them when in reality there was no necessity. Remember, every loan pre-approved or not, comes with a cost. And at the end of the day it is you who will have to bear it.
Don't become Impulsive Buyer:
Impulse buying is a common behavior today. Our culture of consumption forces us to surrender to our temptation and we end up purchasing something without considering the consequences. Is it a bad thing? In my view, yes, it can be. To understand impulse buying from a psychological perspective, we should ask the question â€œWhat motivates us to impulsively buy products?â€ There are in fact a number of answers to this question, and knowing them will help you make smarter, more rational decisions the next time you go shopping.
Sitting idle at home, thought to browse some retail website, ended up by buying a very nice cool pink top which you always wanted. Yes! Are you sure things go this way only, as when you open your wardrobe, you find that you have similar pink top lying idle. Impulsive buying is in our personality traits. You can avoid this with some time tested ideas which you can implement by limiting your every purchase with 10 days limit i.e. you cannot buy that particular thing which you are looking for in that span of time. Well, nobody can stop you from going to mall or visiting a retail website, but if have a time bound for your purchase, you can definitely limit yourself.
A little saving is also important:
Our savings depends upon one of the most important factor and i.e. what we earn. People often make excuses of not earning enough to go for any kind of saving. But remember, even a 100-rupee note can be useful at times. It's not necessary to start savings with huge amount. Savings can be started with even a smaller amount as in emergency; small savings can be very helpful.