We focus so much on the methods of getting rich that we ignore what’s making us poor. You are earning a stable income, you are trying to save every month but you don’t seem to get any richer. Rather you find it more and more difficult to save as each month progresses.
Here are a few psychological traps that so many people fall into and fuck their financial stability.
Making Purchases for Social Validation
There’s a famous saying in our culture. It goes like this — “Don’t overstretch your legs when you have a small blanket.”
You earn only a dollar, but you spend a dollar and a half taking loans, just to show off your mock-up luxurious lifestyle and you sit there and wonder what’s wrong? Never do that, nobody cares what you buy. People know it when you fake, it’s not sex to get away with fake orgasms, it’s society. They know it when your underwear is torn, no matter how costly your suit is.
Rich people are subtle with their purchases, they attract money, not eyes.
Fear or Greed-Driven Investments
The world is filled with emotional traps. Quick money (or) High ROI (Return on Investment) scams are never-ending. Always remember — NO SCHEME OR ASSET CAN EARN YOU MORE THAN 15–20% ON YOUR INVESTMENT, PERIOD.
It’s just as simple as that. Don’t fall for those so-called money doubling schemes, or schemes that promise to multiply your money. The returns seem very attractive that we invest in them out of greed, and you know what? They do make you profit for the first few days or months, but then one fine day the whole website or company disappears into thin air.
Another kind of emotional investment of money is the investment out of fear. People invest in stocks, mutual funds, SIP, or crypto without knowledge just to catch up with the others. Out of fear of being left behind while everyone else is growing rich.
Home Loans/ Mortgage
Ha! This is going to be fun. It’s a long discussion to play but you’ve got to know this. Never buy a house before the age of 40 or unless you are extremely rich. Buying a house is a wise decision, but…