By Bill Davis

October 21, 2010

Guest post by Jonny Pean

Financial failureSo you are an acclaimed spendthrift and saving is just not in your genes. A shopkeeper’s favorite customer, your savings account is always in a dry spell and sales exhaust your paycheck. If you feel that you possess any of the described symptoms, then I must congratulate you; after all, you have the potential of becoming the next financial disaster. Here in this article we have discussed five ways which will surely turn you bankrupt:

  1. Throw a party after every paycheck: Who doesn’t love parties? If you are a hardcore party animal who can’t resist to party on the first of every month then it’s a frank warning that you are heading towards your financial doomsday. We all have temptations and window shopping is certainly de-stressing but an unhappy fact of life is that the mall is not the only place to spend your salary. Those who take this advice have enough savings for rainy days while others face a bleak future.
  2. Make deals with family and friends: It is very true that blood is thicker than water but even truer is the fact that money rules the roost. Doing deals with friends and relatives not only puts your relations in danger but is also very draining for your finances.
  3. Fall in love with EMI: If EMI, or equated monthly installments, tops your budget planning and taking loans is your second nature then probably you are the worst financial planner alive. Taking a loan might be necessary but is not to be cultivated into a habit.  Instead of using your credit card or debit card, start using real money. Start saving your funds and use them instead of borrowing money. This will not only be a wise decision but will also guarantee you a safe future.
  4. Be a guarantor for your friends: Friends are special but cosigning a loan for every second friend is not that special. Being a guarantor means added responsibility, however trustworthy your friend might be.
  5. Do not plan for your retirement: You are just thirty and retirement is ages away. Planning a retirement fund is certainly not on your priority list but a day will come when you will have to face this day. Not having sufficient funds in your old days might present you with all new problems which you cannot imagine now.

Since you now know the debacles of a financial failure, be wise enough to avoid them. Check out the articles on Jonny Pean's personal finance blog at

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