5 excuses that we make when we overshoot our budget

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5 excuses that we make when we overshoot our budgetWhat story did you tell yourself when you bought that expensive bag? What was the reason behind your impulsive shopping, which overshot your budget?

We all have reasons and stories to tell ourselves when we cross our budget or give in to our temptation. We can easily write books on excuses pertaining to financial matters, the composition being more of fiction and less of truth.

Here are FIVE excuses, stories and reasons what we tell ourselves.

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When you go overshoot budget for the month

Well, it was sale during monsoons and all your favourite brands were offering discounts. Of course, you had to pick that bag, which you had been eyeing since months, immediately. So what, if you don’t need a bag now? Someday you will be using it right!
Sticking to your budget is non-negotiable. That’s the only way to do it!

An unplanned huge expense
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This week was a bit rough at work and people close to you did not understand you. You feel drained trying to juggle everything in life. Obviously you need to get your mind off the mundane life and what is better than retail therapy? Meditation may or may not work, but buying that new iPhone or Bose speakers definitely would. Swiping that credit card will sort everything. Now, whom are we kidding with such stories.
Spending big bucks is not a justifiable reason for escaping routine life. Ups and downs are inevitable but working out things need not involve writing large cheques!

Irresistible temptation

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You are determined to make this year, the best one for your finances. SIPs, mutual funds, and other investment plans are made and you pat your own back, decide to relax for a while on the sofa.

The sofa feels a bit hard, maybe because it is old. Your friend’s new sofa was so comfortable last evening. You definitely need that kind of a sofa set. What’s the point saving all this money and being uncomfortable in your own living room? You hear all the voices in your mind which say, “Agreed. Go get one now! The investments can happen after six months.” Credit card comes to the rescue and a brand new sofa is home!
Now you know who the devil is. Temptation is its name! Resist temptation and focus on your plans. Temptation can disguise itself cleverly with excuses, which compel you to give in to its demands. Keep your mind clear and focus on your plans!

Competing with society, especially neighbours
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Forget the Kardashians! Because we are so busy keeping up with our neighbours. Home renovation, new car or a vacation abroad! You need to make a point by doing better and if not at least the same. Remember that Asian paints ad - naya ghar, nayi gaadi and the envious “ badhiya hai” from the neighbour? Haven’t you caught yourself saying it while checking out your neighbour’s new asset?

A competitive spirit is good but comparing with somebody else and buying new things to get an ego boost is definitely not a good idea. Nurture your ego with positive things that don’t burn a hole in your pocket! Rather than keeping a check on the neighbours, keeping a check on your CIBIL report is a better and beneficial alternative.

Log kya kahenge!
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Very often we justify our own expenses by linking it with other people’s opinions. This happens especially when it comes to social occasions like marriages, parties or gifting occasions. The excuse that we make to convince ourselves is that “If I end up spending a certain amount of money, people will form a good opinion about me.”

But you know what? People are still going to find mistakes and shortcomings, no matter what you do!
Shake off the “log kya kahenge” attitude and do exactly what you think is right for yourself and your wallet.
Use your time in maintaining your CIBIL score rather than thinking about people’s opinions about you. Focus on facts over fiction.
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Real life is based on facts and figures. Get them right and you are sorted.

(Rajiv Raj is the Director and Co-Founder of www.creditvidya.com)

(Image: Thinkstock)
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