5 Quick Ways to Lose Your Hard Earned Money

Money Drain
When I was young, I thought that money was most important thing in life; now that I am old, I know it is – Oscar Wilde
You read the title right. I would have  titled it as  simple ways to save money, but then my focus would have been on too many points. I chose this title so that I can narrow down to few important causes for your money drain.

With this article I am going to show where your hard earned money is getting wasted (or poorly spent) and why you are not able to save money even though you earn a decent monthly income. If you feel that you manage your money very well, then you can ignore this article :-)

To start with, what we need to realize is, its not important how much we earn, it is important how much you save (keep) and how you manage your money. Below are 5 areas in the modern eras where you are spending your hard earned money and you were clueless so far about these. Not because you did not know these but you did not notice them.

1) You are the victim of aggressive advertising and Malls: In this modern era, the world is all about advertising and aggressive marketing. Word aggressive marketing needs further explanation. It’s the desperate effort to sell one’s product by repeatedly bombarding people in various ways whether it could be TV ads, internet ads, phone calls or person to person sales. You are lucky most of the time but you can’t escape every time.
Now,why is this bad for you? Because you often end up buying things which you really don’t need or require. You get carried away by the fancy ads about gadgets or a brand new LCD television any other stuff. I am not saying don’t buy anything from these sources. Point is buy what you really require.
Same things happen with Malls or shopping complexes. They are designed in keeping mind of customer’s weakness for shopping. If shopping is your weakness, you will be bankrupt sooner or later or will be in similar situation unless your earning takes a sharp high curve. Malls are silent killers. How many times you went to malls and came out without shopping anything? I don’t think not even once. You end up buying some or the other thing. Result, lose your money.

So controlling your temptation is the key. Haven’t you heard about a Kite? If you want it to fly well, you need to have control over the thread. What happens if you lose the thread? Kite will slap the ground soon. Money is like Kite. You need to hold the thread to make it fly.

2) Credit Cards: Alas, modern world! Every automation has its own pros and cons. A plastic magic called credit card eases your payment problems.Thats what you think. But just swipe in and you will turn poorer by each passing day. Why do I say this? Look at the office buildings of any credit card company. You will be amazed by their interiors and polished furnishings. My dear, it is all your money. Are you earning money to build their buildings?
Don’t get me wrong, I am not saying that credit cards should not be used at all. Use them wisely. It’s a way of spending money without earning it. I suggest you to minimize using your credit cards. Prefer cash payments. Spend the money what you have earned.

Let me share a humor with you. I heard this from a friend. There was a person who was using credit card and has maintaining it so well that he never had to pay any penalty or overdue charges. He always paid his dues on time. One day he was going to pay his dues to credit card office as usual on time. Then credit card officials whispered amongst themselves “Hey Look, our worst customer is at the door”!!! I think you got my point.

3) Spending too much money on telephone bills: I know by the time you read this, you would have started hating me. I am making your life so rigid, so dull, and uninteresting by cutting down your luxuries. But, I am not. I am actually helping you to recognize the sugar coated poison tablets which are consumed by you and they draining you’re hard earned money.

Coming to the telephone bills, shut down unwanted phones. If you travel frequently then try avoiding roaming charges by taking a local number or SIM cards. There is a golden word. Talk Less, Say More. Talking in phone is not same as talking in person.You will see considerable amount of savings after implementing point number 3.

4) You are not tracking your money: Start maintaining a spreadsheet to record your monthly outgoing and incoming money flow. It need not be complicated formula based spreadsheet but a simple one would do. It will serve the purpose of your money tracking. It is difficult in the beginning to note down everything but once you make it a habit, it’s actually an exciting and fulfilling exercise.After all its your money. If you don’t track your money then who will?

5) Not allowing your money to grow: Its very important that you allow your money to grow, because when you allow it to grow, you are your way to become rich. How do you grow your money. By investing. Yes, since now you have ability to manage your hard earned money, you can grow the money as well. I am again repeating, invest in good stocks. Caution, if they are not good stocks, then you would lose your hard earned money in minutes. You can invest your money in other areas as well such as Real estate. In fact there many.I will discuss those in my next article.

So folks, this long article, I tried to show you some practical ways to save money. It takes little sacrifices such as giving up your temptations, limiting your phone calls but this comes at a very good reward. After all it’s your hard earned money. A penny saved, is a penny gained.

I suggest you to read a fantastic book called Rich Dad Poor Dad which is about managing your money. Author Robert T. Kiyosaki explains difference between an Asset and liability. He also teaches financial literacy which is very different from our education. This book is a international bestseller. Check it out at Amazon where you get it for very small price.

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not!



Naveen is a personal development enthusiast, life explorer, curiosity seeker and recently turned into an internet entrepreneur after leaving his 20-year-old (or young) IT career. He now runs a digital growth company called nvision digital (https://nvisiondigital.in)


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  7. This is a good read article,another source of good and relevant ideas on how to mange your money.Thank you very much for sharing this kind of an article,very useful.More power to you!

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