Are you falling prey to some of the tricks?

It is a fact, which you would also agree, that in our lives, although occasionally, we do fall for some of the poor money habits, which we regret later. Here are some of such tricks that you should avoid falling prey to.

Money is going as thought
If you are assuming that your money is going out as you thought then its time to rethink. Money is something that slips away from the bank account like the dessert sand from hands. So, it is always wise to have a budget in place as this will help you to understand where you are spending and also help you to plan your spending.

Financial emergency won’t happen
We all are very optimistic about ourselves and our financial situation and here life plays the trick. Emergencies come unexpectedly and, if it is financial and not well planned, then you have to compromise on your other financial goals. So, to avoid this it is better to build an emergency fund that would take care of such unexpected events. As a thumb rule, it is important to have at least 3 to 6 months of expenses in your emergency fund.

Bad debt and good debt
Some of us do not know what is bad and good debt and others, though they somewhat know, are often confused as to which is bad debt and which is good debt. Education loan, housing loan (if it is your own first house), car loan (if it is your first car), etc. are all good debt. Frequent use of credit cards, personal loans (apart from the cases of emergencies), etc. are all bad debt. In these cases, you should be careful and not allow your finance to play such tricks with you, which would prove to be costlier, going forward.