The concept of Karma is a Buddhist one that means how you behave comes back to you.  It is similar to the Christian belief of do unto others.  In that, if you treat someone bad, then you will also get treated badly. So to avoid this, you treat others how you want to be dealt with.






But what exactly has all that got to do with the money? Well, a lot of our financial situation depends on the actions that we take and what we are owed, which is not so dissimilar to the original concept of Karma. So that means we can say that we have a sort of 'financial karma.' That is we have situations that depend on the actions we have taken, and what is due to us. Read on to find out more.



Financial Karma could be said to be at work in loans. This is because when you borrow money, most of the time you have to pay back more than the initial amount. It is poor financial practices, as in the end, a loan will cost you more money in total. This is primarily due to the interest you are charged. Which is a premium that lenders add to any sum borrowed. This is the charge for the privilege of being able to access the money now rather than waiting until you have saved it.


Loans are generally bad financial karma because you can easily get into more debt that you started with by taking one out.


Although some may say that some loans are good if they have a 0% interest rate or positively affect your credit score. As this can help you get accepted for a mortgage later on.






Image here


So can we say that investments are good or bad financial Karma? Well, let's look at the facts. The idea of investment is that your money provides companies with capital. This allows them to grow and increase their value. As they increase their value, the original stake that you purchased is meant to increase as well.


This seem like pretty good cause and effect Karma doesn't it? If you want some more info, check out sites like


Unfortunately, the investment market is highly volatile. That means that the value of the original stake you purchased can go up as well as down. Meaning that the return on your investment is not guaranteed. You can even lose money by investing!



What about the Karma of other financial opportunities? For example, if something bad has happened to you and it isn't your fault, you may be entitled to some compensation.


This is usually handled through law firms that specialize in personal claims like


In term of karma, this seems to work well, because you are being compensated for an injury, an offense or being inconvenienced. So you get what you are due.



Fragility is one way in which financial karma can really be put to use. If you are frugal, that means you are watching how you are spending your money and not buying unnecessary things.

By keeping to a budget, and not being frivolous with you spending, you can have a lot more left at the end of the month to pay off debts or save. That it the perfect example good financial karma, in that your positive actions have a positive result in your life.