A sad girl sits at a table near a laptop and thinks

Most people make so many purchases that they often don't wonder if it's possible to forego this or that item in order to save money and time.

Do you like to buy only clothes of expensive brands? Do you party with your friends every Friday and weekend? As soon as a new gadget model comes out, do you run to the store to buy it? If your answers are yes, then by shopping you can become a chronic spender. Although many young people lack money or are prone to large and extravagant purchases, this does not mean that they spend too much.

Overspending or spending beyond your means

Overspending or spending beyond one's means is a fairly common and serious problem faced by many young people today. This problem can have many adverse long-term consequences such as bad credit if you don't pay your debts on time. It's often only when you're deeply in debt that you begin to realize that you may have spending problems.

Overspending or spending beyond your means

Let's look at factors that will help determine if you are spending too much money or not:

  1. If your expenses exceed your income, it clearly shows that you are spending money beyond your means. While the best solution is to increase your income, this is easier said than done, and more often than not, bad spending habits can be at the root of the problem. If you track your expenses properly, you can identify your biggest expenses and cut them where possible. Don't think your fixed costs are set in stone. If your rent is more than half of your salary, it might be time to consider moving to more affordable housing. You may also find it helpful to cancel multiple subscriptions until you check your spending. Review your expense sheet and find out where you can cut fat.
  2. You have no idea how much you are spending. If you are not keeping track of your spending, this is a clear sign that you have bad habits. In addition, there is a high probability that you extort money in ways unknown to you. A few additional hundreds of rupees per month charged by the service provider grow over time to tens of thousands per year. If you haven't already, starting to track your spending can give you insight into your financial habits, which may come as a surprise.
  3. You constantly take money from your savings to pay for non-essential purchases. Except in rare cases, you should never touch your savings to pay for daily purchases, especially if they are not necessary. Having to spend your savings proves that you are spending more than your income.
  4. There is no savings and reserve fund. Ideally, everyone should set aside a few thousand a month in a savings account, as well as create a separate reserve fund. The reserve fund is designed to cover any unexpected expenses (such as major home repairs or medical emergencies) without draining your savings. If you can't save even 5% of your monthly income, then you need to take a serious look at your expenses and start cutting back.

Managing your money

Managing your money is a subject of controversy for many people. Some may argue that money comes and goes quickly and is meant to be spent, while others advocate conservative spending and saving money for a rainy day. In any case, not having money when you really need it is the worst feeling, and you may want to borrow money. Try not to spend too much money to avoid this.

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What is the loan term?

  • Minimum loan term: 122 days
  • Maximum loan term: 122 days for first loan
  • Maximum loan term: 182 days for repeat loan

The loan is calculated as follows

  • Loan amount: RS 30.000
  • Loan period: 122 days
  • Consulting fee: RS 3.600
  • Service fee: RS 13.920
  • Interest rate (12% / year) : RS 754
  • Total payment: RS 48.274

Am I eligible for a loan?

You are eligible to apply for a loan if you are:
  • A citizen of Sri Lanka
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