Signs You May Be Having Money Issues
Everyone loves money, especially spending it! Buying new toys or new clothes that make you feel and look good is important for your confidence and self-esteem. But how do you know if you’re good with money or not? Even if you get paid lots of money doesn’t imply you’re good with it. There are a lot of successful people who have big issues with money simply because they weren’t familiar with the warning signs. In today’s world, it’s critical to be money conscious so here are five signs that you may have problems with money which can inevitably cause serious financial troubles down the track.
You don’t have any savings
Many of us get comfortable with our lifestyles – our car, our home, our profession – and forget that things can in fact go wrong and every person needs some financial insulation for rainy days. Without having any savings in the bank, what will protect you from incidents like hospitalisation, job loss or car accidents? If you’re living paycheque to paycheque, all it takes is one financial blow and you’ll be in a world of pain. You’ll have to apply for a short-term, high interest loan which will just intensify the problem – you can’t save any cash currently so how will you repay a further expense? While it’s easy to overlook, having no savings is a recipe for disaster and you should take action now before it’s too late. Most financial advisors suggest having three to six months of living expenses in an emergency fund.
You don’t know where your money goes
Being good with money means that you know when and how much money comes in, and where it goes when you spend it. If you don’t know where your money is being spent, it signifies a lack of care and appreciation for your hard-earned cash, and can naturally lead to financial issues before you know it. Try making a budget and actively complying with it. This will support you in having a greater knowledge of your finances so you can recognise how much of your money is being eaten away on needless items. After a month or so, reward yourself for sticking to your budget and you’ll enjoy spending money on yourself a lot more.
Making minimum repayments only
If you can only afford to make the minimum repayments on your loans, especially credit cards, then you’re heading for financial troubles. It can take years, even decades, to erase a credit card debt by only making minimum repayments. Meanwhile, interest charges will be eating away all your prospective savings while you’re virtually just treading water. If this sounds familiar, it’s time to make a change and quickly. You ought to get your priorities straight by creating a plan, sticking to a budget, and saving as much money as possible to settle your ongoing debts.
Spending more than you earn
The most evident sign of money issues is where your spending overtakes your income. Even when you have a substantial savings account, you must always ensure that your earnings is higher than your expenses, it’s just basic maths really. If you find yourself in a bad habit of spending way too much, it can come to be addictive and lead to even more issues, in addition to potential financial difficulties. Certain people attempt to disguise this problem by paying bills with their credit cards which merely makes the situation worse in the long run. Do you even know if your income is greater than your spending? If you’re uncertain, it’s certainly a good time to find out and make some adjustments.
You have new clothes in your wardrobe that you don’t use
An easy way to assess if you have money problems is to take a look in your wardrobe. Do you have clothes that still have the price tag on them? Almost everyone loves a sale, and it’s a nice way to save money when cash is tight and you need something. But purchasing clothes simply because they’re on sale may reveal that you have money issues. If this is the case, you may also be inclined to buy other items purely because they’re on sale too. Buying unnecessary items under the perception that you’re saving money is something that should be corrected.
Regardless of how much you get paid, if you’re not good with money then now is the time to change your habits to steer clear of possible complications in the future. If any of these warning signs sound familiar to you, it may reveal that you have problems with money and should seek advice before it’s too late. All it takes is one financial blow and you’ll be sucked into the financial abyss. To find out what options you have, or to speak with someone about your finances, contact Bankruptcy Experts Tablelands on 1300 795 575 or visit http://www.bankruptcyexpertstablelands.com.au