Contents
There are Top 4 Bad Habits Keeping You Poor in Life. In our daily lifestyle, we are so much occupied that there is no time to notice these problems. In this article, we will discuss the 4 habits that are causing to drain the salary without your notice.
Habit 1 – Not aware of KYE (Know Your Expenses)
The first habit out of the top 4 Habits to avoid being poor in life is not knowing your KYE. Money slips away silently if you don’t track it. You think you’re spending less, but reality is different.
For example:
- Coffee ₹200 × 20 days = ₹4000/month
- Food delivery 3 times a week = ₹3,500/month
- Small subscriptions = ₹1,000/month
Congratulations!! you have spent ₹9,000 already.
Here is the point: if you don’t track these expenses, you won’t be able to recognize how much you are spending on various products/services every month. Once you track every expense, you’ll know exactly where your salary is going. Then you can structure your monthly budget smartly.
Habit 2 – Not Having Emergency Fund
Your expense data from Habit 1 becomes your secret weapon here. Emergency fund is a cushion that will support you during tough times.
Generally, it is suggested that you should have the emergency fund equivalent to the 6 times of your monthly expenses.
For example – If your monthly expense is ₹30,000, then target at least ₹1.8 lakh (6 months) as your emergency fund.
Once you achieve this and comfortable then you can take it to 10x or 15x. But minimum = 6x is a must. This is your financial seatbelt.
Habit 3 – Keeping Extra Funds Ideal in Bank Account.
A savings account is safe, but it won’t make you rich. Growth comes from investment with patience. You need to make your funds to work for you even when you are sleeping.
Think of your funds as a seed. If you only keep it in a jar, it stays a seed. But if you plant it (invest in mutual funds, SIPs, index funds, bonds) and give it time, it grows into a tree that gives fruits.
Habit 4 – Unnecessary Loans & Credit Card Temptations
One of the most dangerous habits: Buying things you don’t need.
For example, you are following above 3 habits very well. But suddenly one day, you saw one influencer showing the features of recently launched iPhone. This even reminded you that even your one of colleague has purchased the same iPhone due to which he is getting extra attention in your group. Now all these incidents encouraged you the buy an iPhone even though as per you financial planning , it does not fit well.
Here comes the credit card. This gives you EMI for next 6-12 months and makes your financial state worst.
What is the solution for this? Delay your purchase.
- Put it in a “Wishlist”.
- Revisit the Wishlist after 2 weeks. Do you still want it?
- If yes, make the a plan to have the fund for this in next 7–9 months. Buy without or with minimum debt.
This way → No financial burden + More discipline + Self-control superpower.
Conclusion
Financial freedom is not luck. It’s a habit. There are no shortcuts to achieve financial stability. Avoid the above Top 4 Bad Habits Keeping You Poor in Life.
Disclaimer – This is not investment advice. This information is provided for educational and informational purposes only. Please read our disclaimer for more.