December 4, 2020

Stay Away from these Money Traps

Stay Away from these Money Traps

“All can earn money but we all can not become rich” what is the reason behind this it is that we all can earn but we all cannot save it and become rich and financially stable. Now the question arises why we all cannot save money? It is because we get trapped in one or the other money trap.

So to become rich stay away from these money traps.

1. Car out of your price range:

To save your money from getting into a trap, you should spend the money is within your limits. You should not live extravaganza life because living such a life will ruin all your money. You will require a lot of money in maintaining your high living standards of life.

One of the major parts of living an extravaganza life is to have luxurious cars, BMW, Mercedes, and many more. Everyone dreams of roaming around the world in grand SUVs. But have you cared about that for how much you are purchasing your dream car?

You should be very concerned about your financial status. You should visualize your financial status before purchasing a car with how much money you would be left. You should buy a car staying within your financial limits. You should not get into the trap of money. You should not buy the car out of your range and hence save yourself from falling into a money trap.

2. Impressing others:

We are very much concerned about what people think about us, we mostly waste our time and money in efforts of impressing others. It is rightly quoted by Nico that “impressing others is not the main purpose of your life. Impress yourself and see the development.”

you should keep in your mind that you are not born to impress others, but still we find that we are spending money on impressing others like we often by the same things as a neighborhood friend has, as to impress them. We purchase costly clothes in order to influence people. Have you ever paid attention to your “to impress activities”?

These activities are ruining slowly and slowly. When you start spending your money to impress people then you are in a money trap that can typically affect your financial status. Try not to purchase anything to impress people but purchase according to your needs and necessities.

3. House out of your price range:

One of the most common money trap is purchasing a house out of your price range. As we want to roam around the world in luxurious cars the same as in the case of a house. We want to live in big mansions and bungalows with all kinds of facilities at our hands.

We all dream of the house which is well decorated with the luxuries and servants. We dream of a wide and grand villa. Before purchasing a house you should consider certain things like can you really afford the house that you are planning to buy or decided to buy.

You should also think are you taking any kind of loan to make the purchase of a house. You should not become a debtor to money lenders or to banks. Because if once you become debited to any kind of loan then you remain indebted since you keep on paying the interest but the principal amount remains the same. So stay away from the money trap of purchasing a house out of your price range.

4.Having no financial plans:

To have a good financial status you should have a financial plan. When you do not have any financial plan you do not know what to do, how to do, and when to do. A financial plan ensures your financial stability. A financial plan tells you how much to invest and where to invest. A financial plan helps to get through all kinds of financial crises.

Without financial planning, you cannot decide your financial goals and when you do not have any financial goals then you can not attain financial stability. Not having a financial plan makes you more prone to financial risks .not having any financial plan can also lead to financial stress. So in order to, not get trapped in money traps you should necessarily have a financial plan. To save yourself from all kinds of financial drawbacks does have a strong financial plan.

5. Not caring about credit score:

To maintain a good consistent financial status you should take care of your credit score. You should always be aware of how much money you have in your bank account.

When you do not care about credit score then you can not take any kind of loan because the creditors first analyze your credit score and then permit you for a loan. Without having a good credit score landlords do not provide house on rent.

Everybody checks for a security deposit. Always maintain a good credit score. Not caring about credit scores can also lead to rejection for good jobs because there are multinational companies that only provide jobs to those candidates who have a good amount of credit balance.

So to avoid yourself from getting trapped in money traps like not caring about credit score, take proper care of your credit balance to maintain financial stability.

6. Spending too much in going out:

You should be very cautious about spending money. You should not spend your money relentlessly. You should not spend too much on going out. You can select for such a destination to spend your time that requires less amount of money because what you benefit from making vacations -nothing more than a sort of relaxation. So just think for a while can you spend so much money on relaxation.

You should think then analyze and draw out the conclusion that either you should spend the particular amount of money in going out or not. You can also save your money by opting for other cheap means of transport instead of air and waterways.

Take care of your hard-earned money. To save yourself from falling into a money trap, act out of your mind; spend less on going out and roaming around the world.