http://sg.finance.yahoo.com/photos/10-deadly-sins-that-keep-you-poor-1369026873-slideshow/
Wonder why you’re always out of cash? These are poor habits that keep you from getting rich. Check out the 10 spending sins.
This article has been edited by blog owner to be more relevant in the Singaporean context.
Cards has become such an important part of our lives. We cannot live without it. Credit cards dramatically reduces our need to print notes, etc. However, if you wish to reduce your expenses, stop using the card, switch to cash. It has become too convenient till you lose track of where you are at financially.
2. Emotional Shopping:
Stop and think why you are buying things. Is it because you had a fight? An argument with your boss? Filling up the time?
Instant gratification is not that great. It creates debt in the long run.
3. Entitlement shopping:
Amazing how many people think this is a basic. "How can I not take a taxi, go on a holiday, etc...?"
4. Peer pressure:
Where you live, what you buy, where you eat out, what you do – all this is decided by colleagues, classmates, etc. Funny situation is it not? Everyone is trying to outdo one another. Seems more like running in circles.
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:
You do not absolutely have to go to a mall, play bowling, watch a movie or eat out all the time.
Once in a while reading a book, playing carrom, going for a walk, cycling around, are also entertaining and at a low or no cost too.
7. Self worth is completely dependent on what you have.
This refers to the need of having ‘show off ‘ assets that are branded. It is not a need. It is silly. Have more faith in your own self-worth.
8. No plan:
Going in blindly with no plan on how you spend, no plan on how to advance in your career, how to grow your savings, etc.
There must be a plan. Otherwise, you will just keep spending with no remorse.
9. No understanding of investment concepts
Start early, embrace the power of small numbers. It will eventually add up.
10. One more loan won’t matter
There's the housing loan, the renovation loan, the car loan, the study loan... so what if I added another loan?
Every loan you take reduces the money you have for necessities like food and bills. The lesser loans you have, the better. You might even have some spare to save up for rainy days. Think about it.
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