If we take a step back and contemplate, we will realize that we are
Buying more.. than ever before!!
Over Consumption and Debt
Basically, we are spending way too much money and loading up on debt in the guise of trying to be happy, content or live a better life than our neighbor, relative or even Facebook friend.
It is not easy to ignore the shiny new goods in the shops, the marketing of new products and the lure of a higher standard of living. We try to ape the lifestyle of buying bigger things and trying out everything as we are afraid of being left behind. This leads us to bad habits such as overconsumption, greed and mounting debt.
This kind of life is wasteful. It also leads to reduced savings, lesser investment and a materialistic lifestyle which at some point of time will break us down.
Even after spending all our hard earned money on various things, we do not get satisfaction. We are always searching for more. Put a FULL STOP to this life.
Let us look at ways to get out of the race of overconsumption –
1. Reduce Spending
How much of your income is allocated to necessities, wants, and investments? At least 20% of your income should be channeled for investments and about the same amount on wants such as luxury holidays, latest gadgets etc. The rest would make up your budget on food, housing, clothing, utilities, schooling etc.
If your income is not categorized at least roughly in this manner, you should make changes to your lifestyle. The savings are important for a rainy day as well as your retirement.
2. Budget and Pay off your debt
Make a budget and live within the budget. Pay off any personal debts and loans taken for consumables that you have taken in your country of residence. It is important to have a plan to pay off the debt and start investing in assets so that your retirement is taken care of.
3. Increase Savings and Investment
Set up long term and short-term financial goals and make sure you save and invest to reach those goals. Invest in different assets to get optimum returns and make your wealth grow.
Participate in the well-being of the less fortunate – You can help yourself by helping others. Share your fortunes with the lesser privileged people or the people at a disadvantage. You will be surprised at how good you feel and the level of satisfaction you reach.
4. Reduce Credit Card Usage
Credit cards are useful in case of emergencies. They are good for traveling abroad, reservations and earning reward points. You do not have to keep too much cash in hand if you have a credit card. But they are an easy tool to overindulge and overspend.
Use your credit cards responsibly. Pay off the credit card balance in full and do not keep too many credit cards.
5. Spend time, effort and money on things that really matter
When you are really old and reminiscing about your life, you would cherish the time spent playing with your children rather than on your material acquisitions. To increase the quality of your life by building strong relationships with those that matter and experiencing the little treasures of life.
6. Get your finances in order using the services of an adviser
The financial planning can help you in building discipline. You may have income and expenses that you are not able to budget – you may require cash flow planning.
Taxation, Investment Planning, Estate planning are crucial aspects and it is important that they are taken care of in the most appropriate and most beneficial way for you.
Too much of materialistic aspirations lead to unhappiness and financial problems. Get out of it to have a more meaningful life.
This post is written by Vidya
It may be a good idea to get a competent professional financial adviser
who will work with you to help you reach your financial GOALS.
If you have questions & concerns regarding overconsumption or loans – please share in the comment section.