Nowadays, getting loans are easier than it was before. Traditionally, Indians have been savers rather than being spenders. Even in the 90’s and 2000’s people would focus on saving money rather than spending and borrowing. Now, however, the scenario is changing with the advent of easy money and easy loans. You don’t have to walk around with cash as you have debit and credit cards with you. You can also do online shopping. There is a plethora of options available today. How much should you spend? Should you borrow and spend like there is no end? India’s First Free Online Financial Advisory Moneymindz.
Data from 2010 suggests that Indians are borrowing lot of money increasingly. They get unsecured loans for marriages, festivals, and even pay day loans! According to Wikipedia, a payday loan means an unsecured loan which is given to make ends meet till the day of salary arrives. This is already a popular trend in countries like USA.
Loans are easily available such as Credit Debt, Home Loan, Car Loan, Education Loan and Personal loan, etc. This doesn’t mean you should get loans at the blink of eye with nil consideration about its consequences. India’s First Free On call Financial Advisory Moneymindz
In today’s world, advertisements are everywhere and they play with human psychology and greed. This makes spend without need and later regret (some don’t even regret this!)
Know the difference between “needs” and “wants”
A need is something you have to have while a want is something you would like to have. An example for need would be food, shelter, clothing, medicine etc. Anything without which you can survive is a want. Once you understand this simple logic, you are on the path to Financial Independence.
Be old fashioned in this regard
Give a break to your internet connection, your gadgets and your cards. Take a list (of needs), carry as much cash required for those items, walk to the nearby store, purchase ONLY what is in the list, pay through cash and return home. This exercise will keep your spending limited as you would be carrying limited cash, no cards and are manually buying items there. It’s ok if you are old fashioned in this aspect. Certified Financial Planner Kuber Mindz Moneymindz
Live within your means
Make sure you never spend more than what your regular income allows. If you spend more that your income, you will find yourself taking loans and getting into debt. So the most important thing is to learn living within your means.
Clear all your loans and don’t take new loans unless necessary
Clear all your outstanding loans and don’t take additional loans unless situation demands.
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