3. Control Your Debts

All countries have debt issues. So, it is all but natural for you to have them as well. Still, having a debt is no excuse for not being able to handle your finances. Debts can be both constructive and destructive. Constructive ones add up to our assets, like – home loans, car loans, educational loans and the like. Destructive ones just multiply our financial troubles, like that of credit card bills. Interest charged on credit cards is exorbitant – nearly 40 percent. It would be wiser to pay cash for expensive purchases rather than go bankrupt paying your credit card bills. Stay miles away from Predatory Lending. Here, banks can coax you by going for higher loan amounts, when in reality it burdens your EMIs. Contingency funds should be planned, keeping EMIs in mind. When you’re almost 40, you fall in the middle category of taking care of not only your children but also your parents. So, you are in no position to over-spend or put your money to bad use.