Financial habits to avoid for a wealthy Future

We first make our habits and then our habits make us.

Bad financial habits deplete your hard earned money, landing you in debts. Instead of regretting the bad financial practices, it is better to be prudent and take wise decisions related to your finances and create wealth for future.

Let’s have an insight into some financial habits you must avoid to ensure a healthy financial future:

1. Check your Spends – One of the major habits which disbalance the financial position of any individual is spending more than what is earned. Spending more and saving none shall pile up debts and there would be higher chances of default, downgrading your credit score. A consistent control on what you spend can improve your financial position and credibility.

2. Excessive Use of Credit – Living too much on credit with limited sources of income is a bad financial habit and should be avoided. Using a credit card for every expense instigates overspending which shall sweep off your budget and you shall be left with nothing to save for the future. This shall worsen your financial position and your CIBIL rating. Thus, credit should not be used as free cash, limiting the expenses.

3. Pay dues on time – Ignoring credit bills and defaults in repayment of loans can negatively impact your credibility. Banks, on a cautious note, are reluctant in granting loans to businesses or individuals with negative repayment history. It is, therefore, advisable to not miss any due date for repayment of loans or outstanding credit card dues. This shall improve your credit score and you shall be able to secure loans at better interest rates.

4. Not saving for an emergency – It is human tendency to become complacent thinking that the current state of affairs will continue forever. The future is uncertain, suggesting that one should always have an emergency corpus of a few months’ expenses for any emergency financial needs. You may keep those funds in your savings account or invest the same in liquid funds for better returns. This shall strengthen your financial position and save you from financial shocks.

Staying away from bad financial habits certainly helps you in long run and ensures a wealthy future for you and your family. This also helps your CIBIL score favorably and will put you in a position to bargain for better terms and conditions for availing loans from banks and other financial institutions.

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