Adopt These Financial Habits to stay away from Loans


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For most of us, it’s the bad Financial Habits of ours, which pushes us towards the need for loans. The need to borrow from banks and other lending parties is, most cases (leaving aside those crunch financial emergency situations!), is all because of your spending habits.

Let’s take some preventative measures and adopt good financial habits to stay away from all sorts of Loans (especially Personal Loans or Credit Card Loans!). But what those financial habits are? Any guesses? Let’s come straight to those financial habits:

– The first golden rule to stay away from Loans is to start spending less than you earn every month. You just can’t borrow from your friends and your sources and can spend lavishly

– Track your savings and expenses every month. The tracking of your savings and expenses allow you in creating a well defined planned towards better financial future

– Avoid overspending on gifts and parties. Stop pretending to be rich. If you aren’t rich, there’s no shame in accepting that and working out your daily life based on it.

– Never be an impulsive buyer. Refrain yourself from buying things, which you don’t need at all.

– Create a shopping list and stick to the plan. Don’t fall for the discounts on other useless items, which you don’t need

– Close down all the bills, as soon as you receive them, so as to avoid late charges

– Ignore Credit Card mails, which offer you free credit cards. Keep one or max 2 Credit Cards

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– Utilize the credit cards responsibly. Credit Cards are not free money, and in fact, they are the dearest money, which calls for the highest rate of interest in the market

– Utilize the credit card to buy items of only those, whose payment you can make at the end of the billing cycle

– Pay the complete bill of your credit card, at every cycle of the bill payment. Never pay minimum use amount, as it will keep on mounting on your head and even bear a high rate of interest

– Part some money from your earnings at the start of the month and keep it in your savings deposit

– Keep the money in your wallet only what is required. Just keeping all your money in the wallet is an invitation to the expenses

– Better categorize the money required for every activity, like keep aside rent, bills, grocery, conveyance, and other such

– Make a habit of investing your money. Whatever you save per month, chalk out some plans to invest those savings which offer you a high rate of interest

– Look towards the investment options like Recurring Deposit, Fixed Deposit etc

– Do a research on mutual funds investment and invest in it. There are several other plans depending on your country’s financial structure; invest in those

– Take an advantage of automatic paycheck deductions, which is a way top automatic savings and will not trouble you at all

– Review your gone month expenses and cut down unnecessary expenses accordingly in the next month

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– Increase your savings, every time you get an increment. Even, if you got an increment of 10% and increasing your saving to 50% of the increased amount, will increase your savings

– Avoid buying a car, unless it’s necessary. Even, if it’s so important to consider buying a second-hand good condition car

– Use Car responsibly; use Car only when it’s needed the most. Don’t fall for showoff, you are the one, who can decide, what is needed you the most

– Utilize the coupon and discount offers for several deals

– Wait for the festive season to buy high-end items. It’s the festive season, which offers you the most discounts and offers on items

– Avoid using payday loans to solve your financial issues

– Make a budget of your month and stick to the budget

– Set your saving goals. Use a timeline of 3 months, 6 months for your saving goals

– Don’t rely on Personal Loans and Credit Card Loans to solve your troubles!

– Negotiate on deals, whenever such an opportunity arises

– Always maintain an emergency fund with you. It has been a survey that one must maintain an emergency fund of 3x your monthly salary, or 6x your monthly expenses

– Avoiding the urge to tap your emergency fund for your non-emergencies needs

Do your best to get rid of bad financial habits and adopt the healthy and good habits, which keeps you away from forcefully taking a Loan to meet your needs and demands.

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