Not sure why the number 10.  Actually these are poor habits that keep you from getting rich.

These are spending sins that I plan to cover here – will cover the saving / investing ones separately. So here we go:

1. Using credit cards or debit cards: the card has become such an important part of our lives we cannot live without it. I have always argued that the card dramatically reduces our need to print notes, etc…however if you wish to reduce your expenses, stop using the card, shift to cash.

2. Emotional Shopping: Stop and think why you are buying things. Is it because you had a fight? an argument with your boss? time-pass? as entertainment? you have been waiting for a friend and you were supposed to meet in a mall? Or do you really need the things that you are staring at in a shop? Instant gratification is great – so what if it creates debt in the long run?

3. Entitlement shopping: Amazing how many people think ‘this much is basic’ how can I not travel by air, taxi, auto…or ‘it is my wedding anniversary, I MUST BUY HER a diamond ring’ or ‘sir we just need an I pad’ . Amusing to see kids buying a mobike, car, house, …all on such ‘sir everybody borrows to buy a house’ theory. Entitlement based on dad’s earnings is even funnier to watch.

4. Peer pressure: where you live, what you buy, where you eat out, what you do – all this is decided by colleagues, classmates,  etc. who are actually chasing YOU. Funny situation is it not? No clue who is chasing whom – seem to be running in circles and wondering where have they reached!

5. Addictions can be expensive: shopping, tobacco, eating at fancy joints, buying expensive things, alcohol, travel – anything which becomes an obsession or addiction sucks money out of your system, and fast!

6. A victim of the media: today your entertainment has to be going to a mall, bowling, playing other games, movies or eating out. To imagine that reading a book, carrom, going for a walk, cycling around, etc – those which you can do together but does not cost money have been so beautifully killed as entertainment thoughts! Wow media, you have achieved your goals!

7. Self worth is completely dependent on what you have. So all ‘show off ‘ assets HAVE to be branded. There is a whole gen out there which has been beautifully told that Brand = Value. Excellent for me as a shareholder of cos. where I am a shareholder…but it is hurting you like mad, wake up!

8. No plan: no plan of expenditure, career, savings, retirement, …so it hardly matters.

9. No understanding of investment concepts like start early, compounding,  power of small numbers – leading to fatalistic statements like – what will i be able to do saving rs. 4000 a month? or I will NEVER be able to buy a house in Mumbai, so let me live it up…!

10. I anyway have X amount of student debt, x amount of car debt, y amount of personal debt…so what if I added another small amount….

well well if i did not have this self imposed limit of  10….this would just go on!!