Archive for the ‘Money’ Category

Festival spree is on the air and people are busy shopping and spending most of the time outside. And this the time, when you happen to spend more and by the end of the month your loose the track of your budget. I am sure; you have worked hard for this time the year and it’s natural that you get carried away with all the deals and offers during this time.

Having said that, it’s really important to spend wisely on your savings, it shouldn’t be that you spend each and every penny you have saved and then you are left with nothing. Financial crisis, never informs you before coming. SO, you have to spend wisely whether during festive season or otherwise.

Let’s follow some simple tips on how to keep a check on your expenses during festive season:

  1. Prepare a list: Purchase only what is necessary. So prepare a list on what are the items required and then go shopping. This way you won’t end up buying things which are unnecessary and spending more. A proper planning is really important when it comes to spending wisely. Festive season is a test to see if it can withstand your daily budget. So if you pass this test, you can pass any difficulty.
  2. Allot a specific budget: If you have to enjoy your festival, yet not get into any trouble, allot some amount for your festival shopping and the miscellaneous expenses and try to spend within the budget. If you are nearing your limit, it is an alert that, you have spent enough and that’s the time to pull back yourself. This way, you won’t end up spending on unnecessary items.
  3. Don’t buy on impulse: Always, think before you buy anything. Don’t buy things on an impulse. This way, you will not be able to track how much you have spent and how much you are left with.
  4. Don’t get attracted to deals:  There might be some genuine deals, but some might be a way to attract customers and they double the price and sell. SO peruse carefully, before you go for any deals.  If possible, check online and compare the prices and only if you find the deals good enough, then purchase.
  5. If going for a holiday: Again, if this festive season you are planning to go for a vacation. Book everything well in advance. This way you can save a lot. Last minute bookings are always expensive and it takes a toll on your savings. Vacation with your family should always be memorable yet affordable.
  6. Online shopping:  When you hit the malls for shopping, it’s natural that you end up spending more than expected. So the best way is to shop online. This also gives you loads of options and deals, which you can compare and buy.
  7. Be careful with swindlers: This is the time; you come across lot of offers and eye catchy deals. You would not know, and they will use your excitement to buy as an opportunity and would try to cheat. So, always go to the regular shops and avoid going to shops which are temporary. They might be swindlers and their purpose is solely to utilize this festive season as an opportunity to rob or cheat people.

 

SO, when you follow these simple tips, you can save yourself from any further wreck and financial crisis and yet can enjoy the revelry full of fun and joy.

Advertisements

Why borrowing money is a risk

Posted: November 23, 2013 in Money
Tags: , , ,

It is plausible, that only when you are in dire need of money and you have no options left in front of you, you think about borrowing. I guess that’s not wrong though, but it becomes a risk when you borrow from several people and not ready to pay them back.

A recent incident happened at my office. One of my colleagues has been absconding for 20 days now. When called, his mobile was switched off. After dropping a mail he gave his dad’s number. When the manager called, his dad told that someone’s threatening him in office because he borrowed a huge amount from him. And then in very same day the manager came to know that he has borrowed from almost all his colleagues for his sister’s marriage. After all this, look at his misfortune that also took a loan and didn’t repay the instalments from quite some time. And so the bank guy called and said that he might be in danger and they will blacklist him. Once blacklisted, he will never be able to apply for loan from any banks.

SO you see, when difficulties come, they attack from all sides. Now he has reached a dead end. I feel sorry for him, what if he takes an extreme step? Hopefully he shouldn’t, but this is a big lesson for him.

There are many other reasons why borrowing money can be a risk and what are the measures taken:

  1. Can throw the relationship off: If you are closest of friends or relatives, borrowing money and no paying them in time can throw your relationship off and this would be affect for the lifetime.
  2. Keep a backup: Think twice before you ask for money from your friends and relatives. What if you are not able to repay? Keep a backup and then borrow. Don’t totally depend on them.
  3. Don’t pay in lump sum: Don’t wait for the time to pay in lump sum that time never comes. Instead whenever possible pay in instalments.
  4. Face the people: When you hide from people, that makes them sure that you have done a mistake and you will never pay them back their money and that’s when you are wrecking your image yourself.
  5. Keep the family in loop. Whenever you are borrowing money, keep your family members informed about that, so they can help you with the repayment when required and together you can come up with solutions.
  6. Keep this as a reminder: Keep all your credits as reminder in your mind as well as in writing, so that you know that you have a big credit and you have to get rid of that.
  7. Prioritize your expenses: In order to elude any complications a proper planning is mandatory. Like prioritize your expenses and first try to get rid of all the loans so that you are free from all the credits.

 

So first thing, monetary dealings with friends and family should be a big NO. Instead go to the banks and apply for a loan. This way at least you will pay back your loan to avoid higher interest rates. So all in all, avoid the risk factor related to borrowing money and keep yourself clean from all this monetary dealings.