If you’re feeling financially insecure and it’s causing anxiety in your life, you’re not alone. However, simply earning more money won’t necessarily help you reach your financial goals. In fact, even if you double your income, you may still not be any closer to your financial objectives. This is due to the way our socioeconomic system is structured, but it’s up to you to take action and overcome these challenges.
SECRETS THAT ARE HIDDEN FROM YOU
Uncovering the Hidden Truths About Money and the Economy That Prevent You from Achieving Financial Success
1. Circular Running Path: Your Journey
Are you struggling to reach your financial goals despite your hard work and improved professional skills? It may seem like the more effort you put in, the further away you are from your financial objectives. The truth is, working hard and earning more is only a part of the equation. Without proper financial planning, you’ll find yourself trapped in a never-ending cycle of stress and frustration.
Your lack of financial planning is the root of your financial problems. Even with increased pay and improved job performance, the same stress is chasing you. This can take a toll on both your mental and physical well-being, leading to losses in both your personal and professional life.
To avoid this, it’s crucial to take the time to plan your finances effectively. This will ensure that your hard work and efforts result in the financial success you desire. Don’t let the lack of proper planning hold you back from reaching your goals.
2. Banks Not Aligned with Helping You Achieve Your Financial Goals
While banks offer a variety of services, they may not always have the goal of helping individuals achieve their financial goals. One example of this is credit card services, which can lead to a debt trap. The “buy now, pay later” mentality can be alluring, but it can cause individuals to spend a large portion of their income on credit card debt each month.
Additionally, loans offered by banks can also contribute to a financial burden. While loans can provide opportunities for individuals who wouldn’t have them otherwise, it’s important to keep in mind that one wrong decision can lead to falling into a debt trap. The loan application process can be portrayed as difficult, which can make it seem like a privilege to be eligible for a larger loan. However, having multiple loans and paying multiple EMIs can be a huge financial burden.
It’s crucial for consumers to be aware of these traps and make financial decisions that align with their financial goals, rather than solely relying on banks’ services or offers.
3. Marketing Tactics that Encourage Overconsumption and Drain Your Finances
Businesses and sellers actively participate in this by manipulating demand and influencing societal norms to make even unnecessary purchases appear as essential needs.
Many consumers, who are not actively involved in budgeting and monitoring their expenses, fall prey to these tactics. They can be swayed by limited-time offers and the perception of saving money, ultimately leading to unnecessary spending.
Furthermore, societal pressures also play a role in this cycle of overconsumption. People often feel compelled to keep up with the lifestyles of their neighbors, colleagues and relatives, leading them to purchase things they may not need or cannot afford.
Marketers are particularly skilled at getting into consumers minds and manipulating them into buying things they don’t need, or things that are not good for them. This ultimately results in a serious drain on their finances. It is important for individuals to be aware of these tactics and actively make their own purchasing decisions rather than being influenced by these market forces.
4. Saving Alone Not Enough to Secure Your Financial Future
Saving money is often viewed as a straightforward idea, but the reality is that inflation can complicate the matter. While depositing money in a savings account may lead to interest earnings, inflation, or the continuous rise in the cost of goods and services, can diminish the buying power of that money.
As a result, the value of the savings may decrease even though the amount in the account increases. To maintain the same purchasing power, one must save more money to offset the impact of inflation.
Therefore, it’s crucial to take inflation into account when saving for the future and to explore various saving and investment options that can help preserve the value of your money.
5. The Illusion of Ownership: The Reality of Your Assets
The assets that you own may not truly be yours. They are often a part of a larger scheme in which financial institutions play a role in creating the illusion that you own these assets in order to achieve your financial goals.
As you strive to accumulate wealth and achieve your financial goals, you may find yourself buying things that you believe will help you get there. However, the reality is that many of these assets come with the cost of long-term debt. This is similar to the debt trap mentioned before, which can prevent you from truly owning your assets.
Additionally, the worth of most assets will decrease over time, meaning that in the long-term, you may not see any real benefits from owning them. This is especially true if you are unable to pay off your EMI(s) and may end up losing the assets, leaving you in a worse financial situation. This is important to keep in mind as you plan and make decisions about your finances, and be aware that owning assets is not equal to achieving your financial goals.
