If you want to start Investing, please have a good look at your spending habits. This is officially the first step of investing. Most of us (The millennials) spend more than we earn or at least spend all that we earn and this is quite evident from the rise of the startups providing easy finance to buy unnecessary stuff ranging from clothes to cars. Personally, I have never purchased anything on EMI, even when I was earning a very small amount of money yearly.

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Why we spend more than we earn?

The answer is Influence, influence from so-called social media influencers, another thing is FOMO (Fear of missing out) the latest gadgets, shoes, watches etc. ATM was one of the first steps to motivate unnecessary spending (no doubt it was useful in emergency situations), but now things are out of control credit card spending and then getting into a debt trap is quite common nowadays. Sometimes I feel that these microcredit organisations are in the business of selling or providing drugs (read it as money) for which you will pay later on. I see youngsters going out of the way to buy things which they cannot afford at all or they don’t need at all.

This habit of overspending the money which we even don’t own will not let you achieve financial freedom. Also do let me know in the comment box the interest rate charged by the credit card companies on late payment of dues. One of the best ways to get rid of this habit of spending on credit is to break your credit card or put it in safe and use only in an emergency, but that requires a hell lot of abstinence on your part. You can compare it with any kind of addiction and we all know how bad these addictions are (after all we all suffered or are suffering from one of them).

Act now stop spending on unnecessary things and start investing the money you saved. Don’t give that bull shit कितना बचा लोगे, क्या कर लोगे इतना बचा कर। There may be some emergencies and you should be ready for them.
All the best. (Neeraj Arora)

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