“Needs” are essential items that you must have to survive such as clothing, food and shelter, while “wants” are non-essentials you can live without, if necessary. To achieve long-term financial security, you must have enough savings and income sources to cover essential expenses throughout your lifetime. The earlier you start saving, the more you can accumulate for all your priorities.
Eating out on a regular basis has major impact on your long term financial goals. Preparing meals at home instead results in huge savings rather than eating out, especially at high-end restaurants. Eating out is very much trendy these days; despite of high inflation rate, people continue to dine out, only in less frequency. This habit has many drawbacks on a broader perspective.
Majority of the people especially the young generation gets attracted by the massive advertisement of consumer products which includes clothes, electronic gadgets, vehicles, mobile phones, etc; which influences them to do unnecessary spending. Regardless of having a sufficient mobile phone or a laptop, one tends to buy a new model of it at regular intervals, just to stand tall amongst his or her colleagues and friends. Many people do massive spending on credit cards, which is a non-secured financial risk.
The following are the long term financial impacts if you dine out frequently or spend massive amount of money on irrelevant things.
· Education Risk
To obtain quality education is a primary requirement. Unnecessary spending without thinking for the long term goal may create problems in bearing the education expenses. One should save money to achieve the best education, and should avoid taking loans.
· Health Risk
The healthiest food is cooked in your home only; people eating out regularly face acute health problems. A major problem is obesity, which arises mostly from the junk / fast food intake. Eating out at a luxurious restaurant means healthy food to some extent as they lay great emphasis on the quality of their food, but it proves to be heavy on your pocket. People pay their bills through credit cards, due to the high use of plastic money these days, which means you are eating food and gathering debts at the same time.
· Family Planning Risk
After your graduation, you get hired by a good company. Now your core plan should be to start your family. You eventually get married, that adds up to more responsibilities. Now, if you have saved your money rather than spending it on irrelevant shopping and dine-outs, you would have a clear picture of where you stand financially. You need to manage your house, have to look after your children’s’ education, their health and lots of other expenses that arise with time. Spending on credit card and thinking to pay it off afterwards with mark up will make you financially weak. Time to wake up and think!
· Unforeseen Emergency
You should have a strong financial backup, in order to be prepared in advance and make yourself stress free, if an unforeseen emergency hits you in future. This emergency can even be a serious medical issue of you or your family. It can be an accident or a theft / robbery. You should have enough savings in place to cope up with such emergencies if they arise. This can be done by cutting out on unnecessary expenditure.
· Financial Stability
In order to be financially stable in the long term, you need to plan your expenditure smartly. If you experience an increase in your disposable income, doesn’t mean you have to spend it all. You can rather save the amount which is left out after you cover all your expenses. The future is unpredictable; you never know what will happen the very next day. Therefore, you should have enough stock of savings so that you can cope with future unpredictable circumstances.
While eating out or other entertainment activities can provide a good change to the day-to-day routine, make sure not to overindulge in them and fall in a credit card debt. That in turn would impact your long-term financial goals. You might be surprised at what the average credit card debt is!
The author is a professional and possesses expertise on credit card debt settlement. He provides valuable assistance and insights on your credit card debt related problems.You might be surprised at what the average credit card debt is once you read about it in details in our website.