Many of us are struggling to meet saving target of the month and even sometime end of month we are facing difficulty to meet monthly expenses. This all is happening as we do not have any control on our spending habits. This spending habit is killing our savings which we want to save for future.
Few people are excepting the fact of their spending habit and few are justifying by telling that “I am always try to save money but somehow unexpected expenses eats my savings and this small saving will not make much difference in my life”.
But is this really true ?
If you ask honestly the answer is “NO”.
Many of us are giving this convincing explanation to himself and always keep going on with spending habits. But the reality is little different. Actually many reasons are influencing our spending habits and we do not have much control on this.
So what are those influencing factors which is eating our hard earn money…..
1. Use of electronic tractions like credit card, debit card, paytm….etc.
Now a days money has become electronic money due mode of transfer the money like Credit Card, Debit Card, Paytm, Google Pay etc. This mode of payments are enhancing our spending habits and while shopping we don’t have much control on spending. We are feeling much less pain while paying money by these modes of payments as compare to paying by physical money or cash currency. This cashless transaction are giving independence to take unseen burden of spending.
2. Easy availability of durable goods loan
A time was there when getting even small loans from any bank was not that easy. Banks were asking many questions and documents. Even after addressing all their queries they were rejecting the loans. But now a days if you can able to submit a small proof of income, the bank person will come to your door step to provide the loan. Even just to have credit/ debit card you will become eligible for getting instant personal loans. Way to get money is become so easy even sitting at home the loan amount will get transferred into your bank account.
We all knows that taking things on loan are always attracting heavy rate of interests on borrowings but now bank are become smarter than us and offering us “Zero” interest on shopping loans. And this becomes so easy that we will get Rs 20k worth of items by just paying Rs 1k at the time of purchase. This all making us to take more n more thing on loan and this small EMIs of 1k on an item will attracting us to take more such kind of loans.
3. Availability of many shopping offers/ sale
Ample of shopping brands are offering heavy discounts. Just to save more money we are attracting by these offers and purchasing those items which we don’t need, but as those are having heavy discount we are just purchasing. At the time of purchasing we are not even thinking that it is eating out saving of the month. Always do the shopping of those articles which are actually required.
4. Access to faster cash withdraw systems like ATM
In older time people use to keep cash and spending according to available cash. Getting into the bank and withdrawal of money was taking time. Now a days cash are very much accessible at ATM so money is always ready for spend. Even ATM card of one bank can withdraw cash from any bank’s ATM. If you don’t have money in your saving account you can swipe you credit card at ATM and you can borrow money as loan. These facility to withdrawing cash faster is hitting our target for monthly savings.
5. Luxury items are becoming affordable
It was the time when the technological goods like TV, Home appliances, mobile, laptops and other gadgets were very expensive compare to income. If you see after ten years hardly any price increase you find. Now you get many more features in same rates. The Nokia mobile for which people were paying Rs 6-7k in years 2000 is now available in Rs 3k after 19 years. Even furniture prices are hardly increase. Cost for double decorative bed was Rs 25-30k ten years back. Even today the rage is same. The cost of the cars are hardly increased. The cost of 4-4.5 lakhs worth of car 20 years back in hardly increased 1-1.5 lakhs. Many more items are now become cheaper as compare to as they were 10-15 years back. In present earning scales we can buy many luxury items which is directly helping to eat our monthly savings. In olden days these all items are called luxury items but now normal earning person can also afford it.
6. Use of Branded Items are becoming fashion
In olden days people use to wear clothing tailor made where they are buying fabric for one shop and giving for stitching at tailor shop. The cost of those tailor made clothing was cheaper. Now the same clothing you will get readymade on same rate or little more. But by getting tag of brand on it keep their cost double sometime triple. We are happily buying such stuffs and loosing our hard earn money.
7. More fantasised with other’s lifestyle
We always fantasised with other lifestyle and trying to following them. Sometime in competition we are unnecessarily spending more money just to show-off. We should understand that every human being have different need and that is based on their culture, circumstances, situation etc…. . It will never be the same so what we should follow what we like, not to follow other’s lifestyle.
8. Not objecting on high pricing
In olden days people use to shop and while shopping they remember the rates of the items and in next shopping they are very well aware if any price increases. If they found any increment in pricing they use to ask shopkeeper why he has increased the rate. Those days shopkeeper use to have fear from their regular customers as just due to pricing they do not want to lose customers. But now supermarket culture has made us so liberal that even we don’t know the rates of the items and we are just filling our shopping trolley like a rich person and directly going to bill desk and paying happily.
Even we don’t see if any offer can save some bucks, this is happening as we don’t know whether item price has increased or decreased. We don’t see the rate and are just buying items as we needs. Many shop keeper are increasing prises without any reason and we are not even objecting just because of not aware about prices.
9. Not Bargaining
Again this supermarket culture made us so liberal even sometime after knowing the price increment without reason, we are not objecting or bargaining with the shopkeeper just thinking that it is like supermarket where rates are fixed. Most of the local shopkeepers are quoting prices little high. Our smart bargaining power can save good amount of money.
10. Exposer to new items due to online shopping culture
In previous days people use to take daily used items in nearby local shops and for other shopping they are visiting the popular cheapest market or buying stuff from their old regular vendor who was offering best price. But now a day we are going to shopping website like Amazon, Flipkart…..etc. and while searching one item we are eagerly watching best offers/ deals on other items and buying stuffs unnecessarily.
These all factors are increasing our spending habits and stopping us to save money. We should understated the power of savings which will create passive income stream for us I future so in later years we can have regular income per month without doing any work.
Knowing all the facts if we strictly follow our saving plan by keeping aside all the above influencing factors then we can do better savings for our future which only will help us to live life peacefully.
Well explained Sir, really very useful post.
We must avoid unnecessary expenses and focus on saving for better future and peaceful life.