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So, this is a common problem faced by millennials and Gen Z youth despite of earning good. There is poor management of funds to this state of "Bro I'm so broke" by the end of month. So, let's dig into issues and solutions to overcome this state.

Issue 1: Impulsive shopping

This is the major reason for not being able to save more. You are buying something just because you like it while you look at it. It makes you sometimes go overboard your budget and you regret this later.

So the solution to this is, add to cart and wait for 72 hours at least. It just took 5 minutes for you to like something and to decide to buy. So, let it there be in your cart and see after 72 hours if you still are inclined to buy. If yes, then buy and say bye to your hard earned money over that cute product.

Point is to create guilt of buying unnecessary stuff before buying rather than after buying stuff.

Reasons why we are broke by the end of the month and Solutions to resolve this situation

Issue 2: Gosh! That's on Sale.

So, buying something because it's just on sale is really not cool. The offers are generally clubbed with buying other products or offering more discounts on more purchases or getting vouchers to buy later or another gift product which you completely don't need. Free, discount or cashback are the words that trigger to attract you. Don't be Monisha Sarabhai and buy stuff to get discounts and free gifts.

Solution to this is evaluate the *T&C thoroughly and make sure that the deal is not fooling you by giving a petty associated offer. Check whether the tag along with the product will be useful. Check whether the discount over shopping a minimum amount is actually worth your cart reaching that minimum amount. Be wise. Shop smart.

Issue 3: To Keep up with TRENDS

Just to keep up with ever changing trends people tend to buy unwanted stuff. These trends change so fast that even before the product is consumed properly it goes out of trend and results in waste of money spent on it. These faster than light changing trends are threat to environment also. As it creates a lot of waste that does a lot of damage and its disposable is also an issue.

So, at least for the sake of the environment stop trending to trends. Something that was out of trend in the 90's is now back in trend. So instead of keeping up with trends, be trend setters and be comfortable in what you already have. Shopping to keep us with trends is a Big No. Don't even add those products to your cart if it's just for the sake of trend.

Issue 4: Social Media influence

Social media is an awesome place to be informed and inspired. A lot of products are introduced as a medium of social media. Where you get influenced by someone to buy a product just on the basis that some particular person is promoting. You may not even need that product but you still go ahead and buy. Another example of social media influence is to showcase their materialistic happiness on social media. The idea that someone else has something you don't need but you want because they have is quite depressing.

Please, stay away from such influences and ideas of happiness. Try to find your ikigai for better things. This won't make you broke at the end of month but help you save.


Issue 5: Not having that "Oh No" fund

One thing we all learnt in this pandemic is the importance of having emergency funds. A "oh no, fund" is something created for that one rainy day and helps you from being way too broke. But, keeping a fund for long-term needs or unforeseen future is the key. This is not "I so wanna buy that jacket” fund. Keeping a part of your earnings aside partially liquid and partially frozen is what an emergency fund is made up of.

Making a contingency fund can help you escape tough situations as smooth as a moonwalk.

It's like being prepared for the worst scenario. That is as simple as making a RD or scheduling an ECS every month to another bank account of yours or keeping aside a stack of cash. Anything of this kind works. Just make that fund so that you don't go "Oh! no" in tough places.

Issue 6: Not putting your money to work

We discussed above to keep aside a “Oh! No fund'' as this part of money should help you earn more money. Put your ideal money at work. Your cash under the matters, in between clothes and books won't double on its own. You need to invest it in a scheme that is not very risky and gives you good returns at the same time. Keep these investments utmost safe. Don't invest these funds in highly volatile modes of investments like cryptocurrencies, high-risk mutual funds, commodities with high risk, betting etc. Invest in safe and secure with return applied options like SIP in moderate funds, LIC schemes, investments in gold bonds, etc.


Issue 7: Budgeting

Agar yeh kiya hota toh "Why so broke yaar" yeh nahi bolna padta. List out all those expenses in an excel or any sheet and list all incomes to check for gaps between incomes and expenses. Include your savings fund also as an expense you pay towards your own future. Calculate each aspect of cash in and cash out. Become a data scientist of your expenses and track where you went out of line. Having a budget will help you to keep in mind how much you can actually spend and avoid overspending. Subconsciously, you'll be aware of your out-of-line spending. If there are expenses over your income try to raise your income by asking that promotion you work so hard for or by adopting new means to generate income.

Keep all these factors alongside each month so you don't go broke each month.

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Category Others, Other Articles by - Sujal Chheda Kapadia