​7 Reasons Why You Shouldn't Let Money Speak

Often, most of us come across people who would extend a handshake long enough for you to take notice of their brand new luxury watch or who would drive up to the neighbourhood coffee shop so that you could checkout their new swanky car. But does that mean that you start thinking highly of them? Well, more often than not, it’s the opposite. However, you must know that playing it low key is elegant and beneficial in many ways.

Blowing one’s own trumpet doesn’t make one liked or appreciated by other. Whether it’s asking for help in times of need or maintaining a certain standard of living even after retirement, pretending to make less works in one’s favour. Here are some reasons to consider pretending your income is lesser than it actually is.

1) Decrease the burden of loans
Pretend that you make 15% less than you actually do. Plan your expense accordingly to accommodate the pay cut. But the money you have saved is real! It can be used to pay off loans quickly. As a result, you don’t have to worry about paying off debts. This ensures a decent CIBIL score and peace of mind in the long run. This habit will also help you avail loans easily in the future or whenever required.

2) Plan for the rainy days
Emergencies and related expenses can pop up at short notice. Planning for such expenses in advance can help sailing through rough times. Whether health-related expenses or a vehicle breakdown, it helps to have access to funds when they are suddenly required. Pretending you make less than you do can help in creating such a fund. This emergency fund will also help you lead a more stress free life since you have already planned for rainy days.

3) Make your dreams a reality
A trip around the world, studying in a certain university or owning a house, all of us dream of things. The dreams keep us going. Why not resolve to make them real and plan accordingly? Pretending to make less money and diverting the money to your make dreams a reality, fund can be your magic wand. This will also keep your expenses in check while helping you to achieve your goal. It will be fun to pretend you are living in a dream when it comes true.


4) Plan to be forever young
Work hard and party harder is the motto most young people swear by. One reason for that is the confidence they have in maintaining a certain income level in the next couple of years. Age and energy levels are on their side. Living life to the fullest even when other factors decrease is the goal one must have in mind. Whether it’s going on an exotic vacation once in a year or having a monthly five star dining experience, pretending you make less and using that money to sustain your lifestyle is the short road to happiness.

5) People around will value your money as much as you do
Pretending you make less than you do will help build a perception that you are on a budget and your expenses are accounted. Since everyone will know that you don’t take money for granted, chances of people understanding the difference between a gift and a loan when you do help them, will be more. Being clear on money matters avoids misunderstandings and helps build strong relationships.

6) Reduces peer pressure to spend
Since you are wise enough to pretend that you don’t make as much as you do, people around will respect your spending boundaries too. While that does not mean you don’t join in the fun, it keeps you safely away from making expenses which you don’t want to and being judged about it. When it is known that you are on a monthly dinner budget, you will not be forced to spend on lavish dinners every Friday. Do not read this as being stingy. It is more about being able to make smart spending choices.

7) Time value of money concept is real
We have all heard parents and grandparents talking about how much cheaper things were decades ago. Taking a clue from this and considering the ever increasing prices of necessities, chances are that our income is effectively decreasing. While the effects may manifest over a period of time, it will be wise to consider nullifying them by taking action now. Adjusting will be a lot easier if you realise that the value of every penny that you make is going to decrease gradually.

Being wise with money and allowing it to work for you, rather than talk for you will help maintain a sustainable lifestyle and lead a happy life. Smart thinking and intelligent planning are the keys to achieve it. The above points will definitely help you to start thinking on those lines.

(About the author: Rajiv Raj is the director and co-founder of www.creditvidya.com)