Losing money is very easy and making money is very tough Here I am giving you five ways you are losing money so be aware of them and in this financial world where money is something and no one can live without money and It is very important to not lose the money
2 .CREDIT CARDS
1. LOSING MONEY WITH GAMBLING
Gambling is one of the biggest money wasters. Although gambling gives you instant gratification, It does not mean that gambling is good for you, Gambling makes you nothing but poor. Here I give you a number of reasons why you should not play gambling.
1. There is a low chance of winning:
Do you know How many chances you can win in gambling? Only 1 in 38 of gamblers win in gambling. means there is less than 3% chances of winning in gambling.
There is no technique to win in gambling only there is a luck that can help you to win in gambling
Let suppose You put $1000 in gambling and you won $4000 by gambling
Next time when you come to the casino chances are you put the amount of money more than the last time you won and because there is no guarantee of winning in gambling.
If you won again and again ultimately there will be a time come when you put most of money in gambling and you will lose your money
So, Don’t play gambling until you have a habit of losing your money or you have billions of dollars in your bank account
2. Gambling makes you addict:
As you bet on gambling the more chances are either you win or lose but as I told you that there is less than 3% chance of winning in gambling Some signs you are addicted to gambling
(a) you bet again and again: Let suppose by chances once you won a gambling bet and now if you are betting, again and again, means you are now addicted to gambling
(b) you bet to recover your previous losses: If you lose a big amount of money and now again you gamble for recovering your previous losses.
First thing you are making a huge mistake and second you are getting addicted to it because if you bet that money also then you again bet and lose and again the whole process repeated
3. Gambling can change your life:
If you do not stop gambling, it will change your life forever. If you are going to the casino every single day and you are losing money every single day here’s what happened,
The first thing that happened is you lose all of your money including money in your debit card and credit card because you are going to the casino and you are losing money every day
When there is no money left chances are you would use your credit card and debit card and ultimately you could all of your money
The second thing that happened is increasing the problems with your family
Most of the Gamblers have problem with their families due to addiction
This is how Gambling can be dangerous for you
2. CREDIT CARDS
Now It depends on you How you use your credit card but most of the people do not use it wisely, That’s why credit card can lose your money
1. Interest rate is very high:
If you do not pay the loan on the time you will be charged a whole lot of money. The interest rates can go to 20%.
2. Credit Card encourages you to spend more:
If you are going for shopping If you have do not have money in your pocket, chances are you will not go for shopping and you wait for the next salary
Where in the case of credit card you go for spending money if you don’t have money and chances are you use a credit card and eventually you go into debt.
3. May lead to low credit score:
If you do not pay the credit card bill on time you may lead to a low credit score. There are many side effects of low credit score
1. Your loan application might not be approved
2. You might pay high interest on credit card
3. It is very difficult to get a job with a low credit score
3. LOSING MONEY BECAUSE OF NOT SETTING UP A BUDGET
Not making a budget or making a poor budget almost effect the same. You can face a lot of problems in your life if you do not make a budget effectively
There are some reasons why a poor budget/no budget makes you poor
1. Debt: Debt is a very big problem. Once you get into debt, it is very difficult to get out of debt without a proper budget. Going into debt may lead to a lot of financial problems as well as health problems such as
DEBT CAN CAUSE
(a) It can increase the blood pressure
(b) It could lead to anxiety
(c) It could lead to depression
(d) It may lower your immunity due to stress
(e) It will give you stress
These are some health problems. Now Let’s talk about financial problems
(a) Debt is the reason why you are away from your financial goals
(b) Debt encourages to spend more
(c) Debt is one of the reason of high paying interest
(d) Debt can affect your credit score
(e) Debt can affect your relationship
2. No Preparation of an unexpected event: No one knows what could happen in the next step in their life, In this case not saving any money might be one of the biggest mistakes.
(What happened If you are sitting in your home and watching T.V. and suddenly your mother got a heart attack and you have no money in your pocket, and no one is willing to give you one penny and due to lack of money your mother dies that can be one of your biggest life regrets ever) It’s just an example don’t take it seriously
Savings gives you a sense of security
Don’t worry If you don’t know how to make an effective budget
This 50/30/20 rule is simple and effective budgeting rule
4. LOSING MONEY BY BUYING EXPENSIVE BRANDS
Luxury expensive brands are one of the biggest money wasters.
Big expensive brands are actually making you poor, Most of the rich people do not spend on that thing which makes them poor and luxury expensive goods are one of those, Warren Buffett who is one the richest person in the world This person spends money on those things which he needs, not all the expensive goods.
In the case of these expensive brands you are not paying for features, you are paying for the logo What does it mean? It means If you compare an expensive brand with a value for money product you will notice that there is no difference with features wise but due to the logo(BRAND) these companies charge you more
Don’t be sad If you lost your money on such things Check out How to make an extra $1000 at home
5. BUYING LATEST GADGETS
Buying the latest gadgets is also one of the money wasters. Why are the latest gadgets a money waster?
Because you do not need them For Example: If you are using a smartphone which you bought in 2019 and in 2020 a new model come Do you need that model? NO!
Until your work is so advanced that you need the latest gadget every year Same goes to every technology gadgets like Digital camera, Microphone, Webcam, Headphones, Laptop, Computer, etc
Those are some gadgets which you do not need until they have any internal fault or they are very old
Firstly we discuss How gambling is losing your money? Gambling is a game of luck and it is a kind of addiction it can change your life from bad to worst
2. Credit Card: If you use a credit card in a good way then it is good but if you are not disciplined then it can also lose your money
And then not setting up a budget can also ruin your life
Luxury Brands are also a reason that can ruin your money because you are paying for the Logo(BRAND) not for features
Lastly, buying the latest gadgets for showoff is another reason that you lose your money because you do not need them
Making a budget is very important because if you do not know where your money is going How will you manage it?
Excess of every thing is bad, In the beginning you do not realize but after couple of years you will realize that overspend is a bad habit
It totally depends upon you, How you treat it? If you pay credit card bills on time, then It is good