“I hate this alarm clock!” Is this what you say to yourself every day?
It’s your wakeup call. You may hate it but no matter how much you curse an alarm clock, there is no denying that it is responsible for waking you up on time and ensuring that you aren’t late for work each and every day.
Similarly, you would be surprised to find that life gives us financial wake-up calls to bring us back to our senses. These financial wake-up calls help you open your eyes and notice the trap of bad financial practices that you have been blindly following. Overlooking these wake-up calls may bring your finances to an end in future. Here are some financial wake-up calls mentioned that you shouldn’t ignore for long:
- You constantly struggle to get through the month
You must notice such a situation in the middle of the month when you are sensing that you are running out of money. You must have leaded a lavish lifestyle during the first couple of weeks of the month and then turn into a credit-hungry pauper for the rest of the month. If you are living a life that makes you say, ‘I am broke all the time’, then perhaps it is a wake-up call for you to change your lifestyle.
- You continuously fail to save money
Everyone knows the significance of saving money for future milestones or rainy days. But still, an distressingly large percentage of the urban youth has no savings plan for their future. A vast section of our population fails to put aside money in a savings plan that can help them meet their goals or act as a contingency fund.
If you make plans to put a fixed amount of money in a savings plan but have failed to do so in last 2-3 months or so, then it is a wake-up call for you to get your act right. Otherwise, you could start the month by setting some money aside for savings and don’t take out it no matter how desperate the money crisis is.
- You are 30 and have not set up a retirement plan
It is acceptable if a person in his/her early 20s doesn’t think about retirement. But if you are well into your 30s and are still living in the moment without planning for your retirement, then it is a major financial wake-up call.
For every individual creating fund for a comfortable life post-retirement is very crucial. But there are people who are so trapped in the present day cycle of earning and spending that they are ignorant about retirement savings. If you don’t wish to work all your life, then it is high time you invest in retirement plans like ULIPs to make your golden years stress free.
- You are carrying a mountain of debt without a life insurance
It is totally satisfactory to take loans during financial crisis or for buying an asset. But it becomes a burden when the debt keeps on mounting because you are not taking efforts to clear it. If you have been carrying a ton of debt for years and there is no sign of a decrease in debt, then it is a financial wake-up call that shouldn’t be ignored. And if something happens to you than the burden of the debt will come on your family. That is where life insurance steps in. In essence, a term life insurance policy is tailor-made to protect the policyholder’s family from any unforeseen or sudden event, such as the unfortunate death of the policyholder. The benefit of this insurance plan is that the premiums are very low, which makes acquiring a policy very affordable. With a term plan your family can deal with the financial contingencies without any trouble.
Now that you are aware of the financial wake-up calls, it is high time that you stop ignoring them. Get control over your money and lead a financially stress-free life.