Skip to main content

Are you falling into a lifestyle trap?

You can also read this on BeingFinWise
__

 Almost everyone wants to have an amazing lifestyle - with best possible food in best possible places, awesome travel destinations, a swanky car, few trending gadgets, elite memberships and many other symbols which can proudly announce- "I have arrived".

 Yet a lot of us get so obsessed with chasing this lifestyle that before we realize, we are on a downward spiral and caught in the vortex of lifestyle trap. This becomes more pronounced when our income/ sources of earning fails to keep pace with lifestyle inflation led spending.

 And this is a sure shot sign of you falling into lifestyle trap. The best step to avoid chasing lifestyle. The next best option is to realize that you are falling into this trap.

 Here are five signs that you are falling into a lifestyle trap.
  • You are looking to upgrade your "I have arrived" possessions like iPhone, car, Fitbit etc. rather too  frequently. And often when you don't even need them or exiting one would more than suffice.
  • Your definition of affordability is characterized by easy access to loan. For instance you can "afford" to upgrade your car to Honda City because you are eligible for something like Rs. 999,999 car loan.
  • You have made more than half serious inquiry or even taken a personal loan for funding your day to day wants and desires, something you could have done without.
  • You are short of cash since few days before the salary day, thanks to the ongoing end of season fashion sale, eating out 5 days a week, attending expensive concerts etc. And alongside, you are also probably wondering how will you manage to pay your credit card bill in full.
  • Any rise in income is followed by a disproportionate increase in expenses because - you have "arrived"  in life.
While chasing a good lifestyle is not something that I should be sermonizing about, but if chasing this lifestyle has some serious long term financial implications, maybe you need to rethink.

 It's better to prevent falling into lifestyle trap rather than looking for solutions when it is late and may come at a cost.

Comments

Post a Comment

Shop @ Amazon

Popular posts from this blog

Assorted Random Semi-Verses

Memories Isn't every memory a magic? Making you lose the sense of time. Which is so much beyond the realm of logic. Though sometimes they are mere illusions But they keep coming back to you, And make you feel nostalgic! ___ The Dark Side With every talent comes a curse, From every gift speaks a caveat aloud, Even the beautiful moon has a dark side, And every silver lining has a cloud! ___ The Race Somewhere in this race, Some time during the run, I lost myself in between, And forgot to have fun. ____ I write ... I sometimes write random words, Which hardly make any sense; But I just felt that you should know, That in some corner of this little world, I do have a little presence!
5 comments
Read more

Snaps from The Himalayas

Some glimpses of one of the best landscapes in the country. Why long for Alps when our own old, enigmatic yet beautiful Himalayas provide such magnificent and picturesque sceneries!! Have a look. Enjoy. Location - Garhwal Region, Himalayas which lie in the state of Uttrakhand.
10 comments
Read more

destined for greatness ...

He had one final look at his work. The ending was perfect. The beginning was perfect. Yes. The pace slackened a bit in middle, but it was acceptable. A handful of people may not like it. He couldn't please all. But he was sure that he would please most of the people, the ones who mattered. Above all, the work would impress him. He had surpassed his own expectations. He had read the final draft for the 27th time by now. It was perfect. Next day he would contact the publishers. He was sure that nobody would refuse. They would lap up his work and offer him some handsome sum of money. Probably much more than any of the first time writers could ever dream of, at an age of 29. That would bring it all - name, fame, recognition, money ... everything! He was destined for greatness, as a part of the title suggested. Maybe in a year ... or two years at max, the world will recognize his greatness. Maybe, that would be fitting reply to the world which had branded him as a insecure, reclusive, w...
Post a Comment
Read more

Financial tips for a 25 year old

Originally published at  BeingfinWise __ If you are 25 year old, there is a good likelihood that you would have started working or are likely to start soon. And hopefully start(ed) managing your own finances. So, what do you do next? The good news is that having a profession can soon lead to cash flows which perhaps wouldn't have seen in your student days. And that can be empowering in many ways. The bad news is that, if you are reckless with spending money, it can soon lead to a downward financial spiral. Managing your finances well can be a good first step towards a healthy financial life. And it starts with small steps.
Post a Comment
Read more

What's the purpose of investing?

"Investment" - This word is much used and often much abused one. One keeps on hearing this almost all the time be it in office or catching up with friends or attending a family functions - almost everywhere. More so when we are fed with lot of information about how one needs to make money work to get more money. However, for a lot of people, the clarity on one question is often lacking - What is the purpose of investing? And even if one knows his/ her purpose of investing, it is often not implemented in real life. For instance, purpose of one's investments may be having sufficient funds in times of need. Yet they may opt for a personal loan when faced with pressing need for money. Based upon my observations, below are some of the most common purpose of investments (in no particular order) I invest because there is some sufficient funds lying with me and I can get great returns. I am investing for some specific goal - buying a house, education of kids, m...
1 comment
Read more