Are you setting yourself up for a Financial Failure

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It is said, “Money can’t buy you happiness. But, it helps you be miserable in comfort”. In an era where the currency is getting devalued each passing day and commodities are getting expensive gradually, financial failure is bound to happen. It is the result of many factors but results in a quicksand from which it is daunting to recover. Here are some tips and things to avoid, which will help you, avoid financial problems in times to come.

  1. Being Knowledgeable – Always be erudite about your spending patterns and research on your financial status. It is about being prepared for anything that may come. Look for knowledge from the people around you. Look at how they are managing their expenses. Ensure that you read about the financial matters that may affect you in the future. Don’t go overboard while spending your money and ensure that you are spending on quality and utility.
  2. Rainy Day Fund – Be prepared, come hell or high water. Start saving for the rainy day fund. You may never know when a situation might arise when you’re in desperate need for some cash and it is hell when you don’t have the requisite cash for when that situation may arise. So start looking into stable investment plans which may come to your aid in time of need. Look for plans, which have a minimal risk with large returns.
  3. Planning Incapability – With money, the situation may get utterly confounding. So, the best thing to do is plan ahead of time. Do your research about all the expenses that you incur and your income avenues. Look for some quick income methods, which gives you a passive income and helps you cover daily expenses.
  4. Lack of financial discipline – It is okay to say no and not buy something. It is easier to say yes and conform to the spending desires. Make sure you ensure that before you buy something you have the need for it and do not spend your cash on unnecessary items.
  5. Procrastination – People put off saving plans for a long time. This does affect them in the long run as saving plans help the person in getting steady returns and also adds to the rainy day fund. So, it’s better to have a saving plan in place beforehand to avoid crises that may arise without any warnings. An action-oriented plan is suggested to every person in this aspect.
  6. Having an unambiguous goal – Have a goal-oriented outlook towards everything. This will help you in maintaining a balance between your expenses and income. Always set a goal on how much you have to save and how much you want to set aside as your savings. Try to adhere to these and penalize yourself if you deviate from these goals. The goals help you stabilize and prevent you from going overboard while spending.

Financial Failure is a mess which plagues the lives of many people and it is utterly exhausting for someone who has fallen victim to it. So, be vigilant and follow the methods given above and make sure that you don’t fall into this trap.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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