FINANCIAL DECLINE - Top 10 major reasons for decline in financial situation
Avoid them at all cost if you want sustainable lifestyle
Based on my own experiences, following are 10 key reasons which can decline your financial health and bring you into dire situation: #1. VACATION
Vacations under social pressure.
#2. BUYING LIABILITES
Buying a car as a status symbol.
“When you get in debt you become a slave.” - Andrew Jackson
#3. LIFESTYLE INFLATION
Everyone in family owns smartphone.
#4. UNNECESSARY SOCIALIZING
Avoiding home made food and unnecessarily eating out on weekends.
#5. BRANDS LOYALTY
Brand conscious for salons, parlours and clothes. Spoiled lifestyle increasing medical expenses.
#6. SPECIAL MOMENTS
Trying to make birthday and anniversary special by spending more money rather than time together.
“The rich invest in time; the poor invest in money.” - Warren Buffett
#7. EXTRAVEGANT
Grand wedding and family functions.
#8. COMMERCIALIZING
Commercialization of hospitals, schools and education etc.
#9. CONSUMER DEBT
Spending what you haven't yet earned, by loans and credit cards.
“If your income is coming from labor rather than assets, you're being decimated by hidden inflation.” - Naval Ravikant
#10. SHOWOFF CULTURE
Spending tons of money on interiors of house & office and thereby increasing the maintenance cost.
“The fastest way to become rich is to socialize with the poor; The fasted way to become poor is to socialize with the rich.” - Nicholas Nassim Taleb
We are copying the lifestyle of others without understanding our own needs and income. If this does not get curtailed, it will lead to lots of stress and anxiety. Income is not growing at the rate the expenses are growing, resulting in more distress & less peace. Do understand your income and then make expenses according to it rather than looking at the spending of others.
“Being poor is not having too little, it is wanting more.” - Seneca
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