Wondering how your savings have not grown despite hikes and promotions? It’s time to analyse your personal finances.

Are you stumped by the fact that you unquestionably saved increasingly money on your first job than you do now? You’re not alone. While this miracle stumps all logic – shouldn’t you be worldly-wise to save increasingly money as your income goes up? Well, only if your personal finances evolve accordingly.

Below are a few reasons why you find yourself in a tight upkeep every month despite earning well.

Living Beyond Your Means

While it’s perfectly fine to dream big and aspire for a largest quality of life, one must not channelise this dream purely via possessions. It’s natural for our wants to increase as our income goes up; the way we deal with this impulse is what sets the tone for our financial future.

As your income scales up, you’ll notice that you have wangle to powerful financial tools. For instance, banks will readily offer you Credit Cards with a upper credit limit. In situations like this, you have to ask yourself if you can use this new-found self-rule responsibly.

Additional Reading: How Much To Save Each Month

It may be tempting to fulfill all your wants now just considering you can, but remember, credit usage demands responsibility. Successively big expenses on your vellum can be difficult to pay back. This is where you want to exercise caution. Don’t use increasingly than 40% of your credit limit. Why? Because, firstly, Credit Vellum debt attracts upper interest rates. Secondly, doing so will stupefy your Credit Score. The marrow line is, don’t flex your credit muscle just considering you have a big limit; use it well but with shielding restraint.

“Investment? Sounds Boring!”

This is a worldwide sentiment among a few millennials. There’s a stigma virtually finance that makes youngsters find it boring. Hence, they don’t scarecrow to learn well-nigh investment and wealth generation. It’s no secret that SIPs can help you cultivate willpower when it comes to saving money.

Staying yonder from the world of investment can risk you to have inconsistent saving habits. Look, there’s nothing wrong in embracing the YOLO spirit, but when it comes to money, you need to know how to not only earn and save, but moreover grow your wealth.

Additional Reading: Simple Ways Of Saving Money

Not Tracking Your Spends

Today, tracking where your money is going is easier than ever. You can plane do it via your smartphone (click here to download the BankBazaar Mobile App). However, despite having technology to when us, some of us decide to wing it when it comes to gingerly our money – this is one of the most worldwide mistakes people make when it comes to handling personal finances.

While it may seem trivial to note lanugo minor expenses such as, say, ownership a bar of chocolate, one runs the risk of developing a draconian vein towards tracking money, considering all these little expenses will sooner snowball into a significant amount.

Thankfully, simple habits such as checking your wall statement every week or checking how much mazuma you’ve used from your wallet can alimony this bad habit at bay. As cliche as it sounds, a rupee saved is a rupee earned. Appreciating its value will fortify your relationship with money.

The post Earning Increasingly Than Before But Saving Much Less? Here’s Why appeared first on BankBazaar - The Definitive Word on Personal Finance.