Seven wrong money habits to become poor

 

1)Lazy in money management –

Many people has a habit of keeping money idle in saving account or at home or investing only in fixed deposits.

This habit erode your money day by day due to inflation .

Your lifestyle increases, responsibilities increases but your investment and income don’t match that speed.

2) Investment in insurance policies –
Consider Life insurance only to cover risk of life.   Kindly use it as a replacement of your income for your family.

3)Habit of using credit card for consumption items –

This isn’t a good habit .
Keep habit of purchasing only in cash.
Avoid mistake off paying minimum dues of credit card . Always pray full amount.

4) Withdrawing Long-term investments for short term…

When we withdraw long-term Investments for short term needs that decision wouldn’t allow your money to give compounding effect .

Like cutting tree before it grow up.

5)Not having patience and discipline –
Our all investments need to go from all bull , bear and dull phase of that asset class.

If a small tree wants to grow big it had to go through summer , winter and monsoon.

Like that our Investments also need to go through a cycle .

6)Be greedy in momentum asset class –

We are in the fast information era. And instead of focusing on our goals our focus shifted on media .
As per the news we become greedy and fearful and act accordingly .

7)Investing short term money in long term asset class and visa versa –

Many people invest there short term required money in asset like equity .
Nature of equity is maximum volatility in short term and more predictable in long-term.

And many people invest long-term money in fixed deposit.
Nature of fixed deposit is safe in short term and not create wealth in long-term.