With shadow handles, Congress joins tweet bout

With shadow handles, Congress joins tweet bout

With Modi govt on its 100-day celebration drive, Cong has chalked out a counter blitz.
BJP playing dangerous politics: Omar

BJP playing dangerous politics: Omar

Omar Abdullah accuses BJP of dividing Jammu and Kashmir on religious lines

The psychology of money traps!

Jan 30 2014, 12:04 IST
Comments 0
When it comes to money management, a majority of people don’t live up to the level required for becoming rational and logical thinkers. (Thinkstock) When it comes to money management, a majority of people don’t live up to the level required for becoming rational and logical thinkers. (Thinkstock)
SummaryWhen it comes to money management, a majority of people don’t live up to the level required for becoming rational and logical thinkers.

‘FREE’ should always be considered as a warning to spare some time and give a second thought before purchasing anything. Items that come for free can often be the items that are priced higher than the rates at which they can actually be acquired for. By considering the need aspect, one will be able to do the simple math and make the correct decision at the end.

Instant Gratification

Most of us want to visit a foreign country for vacations. However, living the dream comes at a cost that one must save for. There are some people who cannot control the craving and proceed to seek instant pleasure by purchasing a tour package and not saving anything for the future. They simply don’t want to sacrifice the present-day happiness for something that might or might not come 10-20 years down the line. However, one needs to try and attach instant emotions to their future goals. The aim should be to make the future as secured as possible. Making flexible, long-term money spending goals is an even better idea for avoiding being influenced by irresistible emotions.

Habit of Conserving

When it comes to doing the right thing with the unexpected riches gained from one’s ancestors or any other windfall gain, people tend to have a soft corner for this money and prefer not locking it in any kind of risky propositions. They fear that they will lose their ‘PRECIOUS’ money and, as a result, keep them in accounts that have lesser chances of growing in due course of time. One needs to utilise such unexpected gains as normal income and invest it in stocks, real estate or any other mode of investment for better gains in the long run.

In the end, it is not about how much one earns. It is all about how one treats the money in due course. Keeping these psychological traps in mind and being wary of them definitely aids in proper money management and better utilisation of money.

bankbazaar/

Single Page Format
Ads by Google

More from Personal Finance

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...