|May 30, 2017||Comments Closed|
Everybody loves money, particularly spending it! Getting new toys or new clothes that make you feel and look good is important for your confidence and self-esteem. Yet how do you know if you’re good with money or not? Even if you get paid plenty of money doesn’t imply you’re good with it. There are loads of successful people who have huge problems with money solely because they weren’t aware of the warning signs. In today’s world, it’s very important to be money conscious so here are five signs that you could have issues with money which can ultimately bring about serious financial troubles in the future.
Many of us get comfortable with our lifestyles – our car, our house, our work – and forget that things can in fact go wrong and every person needs some financial protection 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 lot of trouble. You’ll have to apply for a short-term, high interest loan which will just intensify the problem – you can’t save any cash now so how will you pay back an extra expense? Though it’s easy to neglect, having no savings is a recipe for disaster and you should act now before it’s too late. The majority of financial advisors strongly recommend having three to six months of living expenses in an emergency fund.
You have no idea where your money goes
Being good with money means that you know when and how much money you receive, and where it goes when you spend it. If you have no idea where your money is being spent, it signifies a lack of care and respect for your hard-earned cash, and can evidently trigger financial issues before you know it. Try creating a budget and actively adhering to it. This will aid you in having a greater appreciation of your finances so you can comprehend how much of your money is being wasted on needless items. After a month or so, reward yourself for sticking to your budget and you’ll value spending money on yourself a great deal more.
Making minimum repayments only
If you can only manage to make the minimum repayments on your loans, in particular credit cards, then you’re heading for financial problems. It can take years, even decades, to clear a credit card debt by only making minimum repayments. Meanwhile, interest payments will be eating away all your prospective savings while you’re essentially just treading water. If this seems familiar, it’s time to make a change and quickly. You ought to get your priorities right by creating a plan, adhering to a budget, and saving as much money as possible to repay your outstanding debts.
Spending more than you earn
The clearest sign of money issues is where your spending eclipses your income. Regardless of whether you have a comfortable savings account, you must always ensure that your earnings is more than your expenses, it’s just basic maths really. If you find yourself in a bad habit of spending far too much, it can come to be addictive and trigger even more issues, on top of likely financial difficulties. Certain people attempt to disguise this problem by paying bills with their credit cards which merely makes the issue worse in the long run. Do you even know if your earnings is higher than your spending? If you’re uncertain, it’s certainly a good time to find out and make some modifications.
You have new clothes in your wardrobe that you don’t wear
An easy way to assess if you have money problems is to search through your wardrobe. Do you have clothes that still have the tag on them? Almost everyone loves a sale, and it’s a great way to save money when cash is tight and you need something. But buying clothes solely because they’re on sale may signify that you have money problems. If this is the case, you may similarly be inclined to buy other items purely because they’re on sale too. Purchasing nonessential items under the impression that you’re saving money is something that ought to be addressed.
Irrespective of how much you get paid, if you’re not good with money then now is the time to modify your habits to prevent possible problems in the future. If any of these warning signs sound familiar to you, it may suggest that you have problems with money and should seek advice before it’s too late. All it takes is one financial hit and you’ll be pulled into the financial abyss. To find out what options you have, or to talk to someone about your finances, get in touch with Bankruptcy Experts Mount Isa on 1300 795 575 or visit http://www.bankruptcyexpertsmountisa.com.au