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6 Negative Impacts of a Wasteful Lifestyle and Tips to Avoid Them!

Admin BFI
27 April 2022
66229
6 Negative Impacts of a Wasteful Lifestyle and Tips to Avoid Them!

Planning finances properly and correctly is always a challenge to deal with. Whether it comes from the temptation to shop for something you don't really need or from unforeseen circumstances that drain the savings that we have accumulated for a long time. On this occasion, the BFI Finance team discussed the extravagant habits that interfere with our financial planning. Through the article below, we provide an understanding of what are the negative impacts of an extravagant lifestyle and how to avoid these wasteful habits. By living a frugal lifestyle and meeting your needs according to portions, you have a great opportunity to enjoy a comfortable and happy future.

 

6 Negative Impacts of a Wasteful Lifestyle

Here are six negative effects of an extravagant lifestyle that you need to be aware of:

1. Can't Save

The negative impact of the first extravagant lifestyle is not having enough money to save. Saving is a lifestyle that should be taught from an early age. There are many benefits of saving, including preparing for a better future and maintaining a stable financial condition.

From the monthly income you receive, you can allocate at least 10% for saving. You can separate a separate account to save so that it is not used for unplanned activities. If you do it consistently and with full commitment, then it is very likely that you can raise money quickly.

2. Debts and Bills Piling

Debt is not something that is forbidden. However, we must be able to determine wisely what we owe. Is the debt for productive credit or consumer credit? Make sure you have an acceptable basis for borrowing some funds through an external party.

In addition, things that can trigger bills and debts that accumulate are derived from the use of credit cards. Credit cards do make it easier for us to get assets faster, but if we can't control their use wisely, be careful if one day your bills pile up. So, understanding how to use a credit card correctly is something that we must hold.

If you can't manage debts and bills well, new problems can certainly arise such as excessive stress or even bothering other people.

3. Don't Have an Emergency Fund

Another negative impact of a wasteful lifestyle is that someone doesn't have time to prepare an emergency fund. An emergency fund is a fund that is set aside from the income you receive to anticipate unforeseen circumstances or conditions such as termination of employment (PHK), medical costs, house damage, and others. With an emergency fund, you can meet unexpected financial needs without borrowing from your relatives or family.

4. Old Age Is Threatened

Old age is a time when we feel what was planted when we were young. Various preparations are made to be able to feel a comfortable and happy old age, such as preparing a pension fund, emergency fund, insurance, and others. Always have a strong financial plan when you are young so as not to be negatively affected by this threatening extravagant lifestyle.

5. Stress

With bills piling up, not having an emergency fund can make it easier to feel stressed. Stress is the negative impact of an extravagant lifestyle that is perhaps the easiest and most often felt. Having no money but having to survive such as to make ends meet all day, transportation is an example of a real stressor. If you are frugal, you are likely to be able to avoid excessive stress. As a start, living a frugal life may seem difficult, but if you have lived it for a long time and consistently, it will feel light and used to it.

6. Feeling Completely Lacking

Some of us may have heard that there are many people who have big salaries, but their lives don't seem calm. This is one of the negative impacts of a wasteful lifestyle. In fact, if we can manage the salary wisely, we can avoid being in a state of shortage. To prevent this wasteful habit, you can make detailed expenses and needs posts. Perform and monitor consistently so that a healthy financial condition is maintained.

5 Tips to Avoid a Wasteful Lifestyle

Once you know the negative effects of an extravagant lifestyle, try the following five tips to avoid wasteful habits and prepare for a better future.

1. Get Used to Saving

The first tip to avoid a wasteful lifestyle is to get used to saving every time you get the income you receive. Allocate at least 10% of the monthly income you receive. By saving consistently and with full commitment, you will definitely avoid the negative impacts of a wasteful lifestyle, and saving for your future can be guaranteed.

2. Be Wise in Shopping

The temptation to shop for something that is not needed or needed does often come. This is certainly one of the obstacles to good financial planning. The solution, is you need to make notes about the items and needs that need to be purchased.

3. Get in the Habit of Bringing Food from Home

The way to avoid the negative impacts of other extravagant lifestyles is to get used to making and bringing your own supplies when traveling. If you work as an office employee, you can bring your own lunch compared to if you spend a budget for lunch outside the office. If you are married and have children who have gone to school, prepare provisions from home so that children do not snack carelessly outside of school. Of course, food served from home will be more hygienic and nutritious.

4. Shop When the Discount Promo Arrives

The next tip to avoid a wasteful lifestyle is to shop when the discount lasts. Shopping options with discount promos are now easier for us to find.

Usually, supermarkets hold promos every day for certain items. Sometimes, special promos are held for certain debit or credit cardholders. However, don't make this discount promo a place to go crazy shopping. Keep shopping according to your priorities and needs.

5. Running a Business

The final way to avoid the negative effects of an extravagant lifestyle is to try to run a business. Instead of spending money on shopping for something that is not really needed, allocate your money for capital in doing business. Indeed, in business, it is not always profitable. However, it never hurts to try and make it an experience. You can also partner with relatives in running a business. Always do in-depth research, BFI friends if you want to run a business.

 

Well, those are the six negative impacts of a wasteful lifestyle along with tips to avoid them. To start a financially healthy lifestyle does take some effort and feels heavy at first, but just trust the time and effort you have put in. Undoubtedly, if you do it consistently and with full commitment, you will avoid the trap of this extravagant lifestyle.

If you want to allocate the money you have as capital to run a business and need additional capital, you can apply for additional business capital to BFI Finance! BFI Finance has assisted in meeting the financial needs of thousands of customers from all over Indonesia. BFI Finance was founded in 1982 and has been registered and supervised by the OJK, so don't hesitate to apply for your business capital financing through us! With the development of the digital world, now applying for business capital financing is even easier, just click the link below and our team will quickly process your loan application.

 

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There is always a way, with BFI Finance.

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