6 Scary Things You Are Probably Doing With Your Money

Aliens, serial killers, and night creatures—people are too fixated on avoiding scary, supernatural or paranormal encounters that they seem to forget real-life horrors. For instance, many Filipinos are afraid of drowning in debt or living with nothing because of bankruptcy.  Indeed, not managing your money well can have a chilling effect on your life.

In time for Halloween season, let’s look at some careless acts you’re probably doing with your money that could eventually result in a frightening future.

 

1. Splurging on luxuries

You’ve most likely spent your hard-earned money on spoiling yourself at some point in your life. While there’s nothing wrong with buying expensive items and experiences especially when you have the resources for it, you’re going to have some problems if you do it too often or without the proper budget.

For example, a survey by e-commerce company Lazada found that 47.4% of Filipinos spend more for their meals on a payday as compared to any other meal on a regular day. A twice-a-month splurge on food sounds reasonable, but you have to be mindful if it starts to take a massive chunk of your budget every time.

Impulsively spending too much on items is also a culprit. Aside from making and sticking to your budget, you can also avoid reckless spending by bringing cash instead of ATM cards when going out; it will be easier to control yourself if you do this.

 

2. Settling only the minimum payment on a credit card

Stop making the huge mistake of just paying the minimum on your credit card bill. It’s not a practical move, and will only bring in higher debt eventually. When you delay paying the full amount, you incur interests. So, not only are you prolonging the time for you to complete the payment but also increasing the original amount of debt to ridiculous heights.

It’s better to not use the credit card for expenses that you cannot afford to repay in full than settling for the minimum every month.

 

3. Investing in something you don’t fully understand

It doesn’t take a genius to know that blindly putting your cash into something is a no-no. When it comes to investments, you first have to identify what you’re getting into. There are businesses that seem complicated to understand, like cryptocurrency and other tech industries, but what’s important is that you take the necessary step to understand the investment vehicle deeply.

Naturally, you would need to read more about your planned investment. In addition, you can list down some questions you think are related and essential to the venture and find the answers on your own so you can understand better. Investment is taking a chance on a concept; there is no guarantee that all of it would do well, but learning about it will help you plan accordingly.

 

4. Putting your money in just one type of investment

Speaking of investments, it’s also unwise to put all your money into only one kind. For instance, it’s better to do it smartly and invest in different stocks in case one or more of the shares don’t do well. An investment should grow your money, not take it all away from you. You can choose between different stocks, bonds, market funds, real estate, variable life insurance, and many others.

 

5. Not saving up for retirement

If you want to avoid a heavy financial burden later in life, you need to start planning your retirement as soon as possible. When you have a retirement plan early on, you have more time to reach your retirement savings goal.

This doesn’t mean, though, that those close to retirement can’t start a fund anymore. Starting your retirement fund late is better than not having one at all.

Find out now how much you need each month once you’re retired. Do your best to set aside that amount or get a good mutual fund, either through your employer or a registered investment advisor.

 

6. Taking a loan that you can’t afford to pay

Putting yourself through debt is a scary thought on its own, but not being able to pay it back is the most horrifying of all. No one wants to live in constant fear, running away from credit collectors all the time.

If you really need the loan, ask yourself first if your reason makes sense, then create a plan as to how you’ll repay it. Planning your payment and creating the proper budget are also ways for you to pay back your existing loan easily.

 


 

These true-to-life terrors may sound inescapable, but there are ways to save yourself from the clutches of financial evil. You should start being financially responsible today and plan your expenses, so as not to fall into debt.

If you have the capacity, you can also apply for an online loan in the Philippines with Cashalo to ease yourself from monetary worries. The Cashalo mobile app will help you solve critical money situations with its simple requirements, stress-free applications, and immediate loan approvals.