Dear Readers,
It is great to see you again!!! I hope you had a lovely weekend. It was my birthday this Friday and we had a nice family get together. The kids as usual had lot of fun and it was a nice evening.
Today, I want to discuss about the disturbing trend of over usage of credit cards. The credit cards were invented by Banks as a means of a quick loan. Most people who were in need of some urgent money used to use the credit card. It served as a great financial scheme for making purchases or for shopping and helped to prevent the burden of handling cash.
But, over a period of time the credit card is being overused by people. The market group of young people between the ages of 18 to around 35 are mostly under huge debt these days. This is a direct result of instant purchases made without proper planning. Most salaried people these days complain that all their salary gets over within the first four or five days of the month.
How is this happening ? This is due to big financial mismanagement. These days everywhere we see that there is a huge sale happening. Every big e-commerce company or retail store keeps showing up advertisements with huge sales with great discount. These sales maybe authentic as the discounts are for real. But, what we have to decide really is whether we actually need what we are purchasing.
Just because someone has a huge sale going on should I go and purchase a new expensive TV or a washing machine. It maybe that I already have a good television at home. Also, this irresponsible shopping trend is mostly visible while purchasing smart phones, tablets and laptops. Every year a big company launches a new product. Now, just to look trendy and to keep up with other people in our social circle we go and purchase that expensive phone or tablet. It looks cool to flaunt the newest phone on the market for the first few days as lot of people are in awe. But, what after a few months ? Who cares ? Now, really was this is a good choice ? What is the cost of reselling this product ? If I am right, it is not even 50% of the actual purchase cost just after the first year.
It may even be possible that this latest phone or tablet is of no great use to us. We may not even know how to use all the features of our current phone or tablet. Then, why go and purchase something if we do not really need it ?
Also, everyone these days wants to travel the whole world. Movies which show that the world is ending is creating a sort of panic in the people. So, they want to borrow money from banks and see the world. They think that they have their whole lives to earn money. This is a very wrong notion. We have to remember that most companies do not offer pension schemes to their employees. The savings that we can make in our age group of 20 to 50 years is what would be helping us for our retirement.
I am not implying that we should stop enjoying and only save money. But, I am suggesting that we should save enough and make purchases only when necessary. If we get carried away by every single advertisement and start buying stuff indiscriminately that we really do not need then definitely we will end up in a financial crisis. So, be smart and make small investments. Always remember to strike the right balance and have your own game plan to be a smart buyer.
I hope you liked this article. I would love to hear back from you. You can write down your comments or drop me a mail.
With my Best Regards and Love,
Gunjan
It is great to see you again!!! I hope you had a lovely weekend. It was my birthday this Friday and we had a nice family get together. The kids as usual had lot of fun and it was a nice evening.
Today, I want to discuss about the disturbing trend of over usage of credit cards. The credit cards were invented by Banks as a means of a quick loan. Most people who were in need of some urgent money used to use the credit card. It served as a great financial scheme for making purchases or for shopping and helped to prevent the burden of handling cash.
But, over a period of time the credit card is being overused by people. The market group of young people between the ages of 18 to around 35 are mostly under huge debt these days. This is a direct result of instant purchases made without proper planning. Most salaried people these days complain that all their salary gets over within the first four or five days of the month.
How is this happening ? This is due to big financial mismanagement. These days everywhere we see that there is a huge sale happening. Every big e-commerce company or retail store keeps showing up advertisements with huge sales with great discount. These sales maybe authentic as the discounts are for real. But, what we have to decide really is whether we actually need what we are purchasing.
Just because someone has a huge sale going on should I go and purchase a new expensive TV or a washing machine. It maybe that I already have a good television at home. Also, this irresponsible shopping trend is mostly visible while purchasing smart phones, tablets and laptops. Every year a big company launches a new product. Now, just to look trendy and to keep up with other people in our social circle we go and purchase that expensive phone or tablet. It looks cool to flaunt the newest phone on the market for the first few days as lot of people are in awe. But, what after a few months ? Who cares ? Now, really was this is a good choice ? What is the cost of reselling this product ? If I am right, it is not even 50% of the actual purchase cost just after the first year.
It may even be possible that this latest phone or tablet is of no great use to us. We may not even know how to use all the features of our current phone or tablet. Then, why go and purchase something if we do not really need it ?
Also, everyone these days wants to travel the whole world. Movies which show that the world is ending is creating a sort of panic in the people. So, they want to borrow money from banks and see the world. They think that they have their whole lives to earn money. This is a very wrong notion. We have to remember that most companies do not offer pension schemes to their employees. The savings that we can make in our age group of 20 to 50 years is what would be helping us for our retirement.
I am not implying that we should stop enjoying and only save money. But, I am suggesting that we should save enough and make purchases only when necessary. If we get carried away by every single advertisement and start buying stuff indiscriminately that we really do not need then definitely we will end up in a financial crisis. So, be smart and make small investments. Always remember to strike the right balance and have your own game plan to be a smart buyer.
I hope you liked this article. I would love to hear back from you. You can write down your comments or drop me a mail.
With my Best Regards and Love,
Gunjan
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