The poor habits that keep you always out of cash.

1.     Using credit cards or debit cards

The card has become such an important part of our lives we cannot live without it. I have always argued that the card dramatically reduces our need to print notes, etc…however if you wish to reduce your expenses, stop using the card, shift to cash. 

2.      Emotional Shopping

Stop and think why you are buying things. Is it because you had a fight? an argument with your boss? time-pass? as entertainment? you have been waiting for a friend and you were supposed to meet in a mall? Or do you really need the things that you are staring at in a shop? Instant gratification is great – so what if it creates debt in the long run? 

3.     Entitlement shopping

Amazing how many people think ‘this much is basic’ how can I not travel by air, taxi, auto…or ‘it is my wedding anniversary, I MUST BUY HER a diamond ring’ or ‘sir we just need an I pad’ . Amusing to see kids buying a mobike, car, house, …all on such ‘sir everybody borrows to buy a house’ theory. Entitlement based on dad’s earnings is even funnier to watch. 

4.     Peer pressure

where you live, what you buy, where you eat out, what you do – all this is decided by colleagues, classmates, etc. who are actually chasing you. Funny situation is it not? No clue who is chasing whom – seem to be running in circles and wondering where have they reached! 

5.     Addictions can be expensive

shopping, tobacco, eating at fancy joints, buying expensive things, alcohol, travel – anything which becomes an obsession or addiction sucks money out of your system, and fast

6.     A victim of the media

today your entertainment has to be going to a mall, bowling, playing other games, movies or eating out. To imagine that reading a book, carrom, going for a walk, cycling around, etc – those which you can do together but does not cost money have been so beautifully killed as entertainment thoughts! Wow media, you have achieved your goals

7.      Self worth is completely dependent on what you have

So all ‘show off ‘ assets HAVE to be branded. There is a whole gen out there which has been beautifully told that Brand = Value. Excellent for me as a shareholder of cos. where I am a shareholder…but it is hurting you like mad, wake up

8.      No plan

no plan of expenditure, career, savings, retirement, …so it hardly matters. 

9.     No understanding of investment concepts

like start early, compounding, power of small numbers – leading to fatalistic statements like – what will I be able to do saving Rs. 4000 a month? or I will never be able to buy a house in Mumbai, so let me live it up

10.   One more loan won’t matter

I anyway have X amount of student debt, x amount of car debt, y amount of personal debt…so what if I added another small amount