Signs you’ve got financial problems you’re not dealing with

Financial problems can be the most stressful kind of problems to have.

This is why many people these days are working towards making themselves financially free – they don’t want to have to worry about bills and other expenses, and they know that really, they need a lot less than everybody thinks you need.

You don’t need millions in the bank to be financially free. However, you do need to be good with money. How do you know if you’re not good with money? You’ll probably relate to some of the following signs:

You have frequent arguments about money with your loved ones

If you have frequent arguments with your loved ones about money, this is a sign that they’ve spotted your issue even before you have. Now, it could be said that arguments about money between couples aren’t always about the money. They can be about what the money means to the other person, rather than the money itself. That’s a whole different post. If you’re struggling to see eye to eye with your loved ones on your finances, then you need to take a long, hard look at what you’re doing.

You don’t have any savings or an emergency budget

If you don’t have any savings and no emergency budget, this indicates that you’re not concerned with your long-term wellbeing. What would you do if you lost your job? If your car just up and broke? These things can happen, and if they do and you’re not prepared, you can end up falling deeper and deeper into debt.

You never really know how much you have in the bank

If you use your debit card with reckless abandon without ever looking at your balance, it seems like you know deep down that something is wrong and you don’t want to address it. Perhaps you’re getting overdraft fees regularly too. It can be really tough to dig yourself out of your overdraft once you’re in it.

Your credit score has been dropping

Having a good credit score can be important whether you want to buy a house or take out a phone contract. But maxing out credit cards will wreck your credit score. You should be using less than 30% of the available balance on your credit card if you don’t want your credit score to suffer.

You’ve started using your credit card to pay monthly expenses

By using your credit card to pay your monthly expenses, you’re simply adding debt. It’s clear you’re not living within your means, and pretty soon you’ll find yourself in a situation that you’ll struggle to get out of.

You avoid looking at your bills and credit card statements

Maybe you’re the kind of person who doesn’t want to face the truth, so you avoid looking at your bills and your credit card statements. If you have a stack waiting to be opened, you could be drowning in debt but you refuse to face facts.

The thing is, all you usually have to do is explain your situation and the firms will usually be willing to work with you to come up with a repayment plan that suits you both.

You’re never too far gone to make a change, even if you have to contact and declare yourself bankrupt. It sounds scary, but it can often be the best situation for you if you know you have a big problem and you can’t do anything about it. Then all you have to do is make sure you get some kind of counselling or help so you have the tools to change your behaviour.

You’re still buying things with your credit cards

Why are you still buying things with your credit cards if you know you’re already in debt? You’re resisting change, and lying to yourself by saying you’ll change after you buy this last thing. You’re already in debt, so what’s a little bit more? This is totally the wrong attitude to have.

You’re paying off one debt with another

You should have your debts on auto pay and factor them into your modest budget so you know exactly how much you have to spend on what. You’ll need to change your lifestyle, but it’ll be worth it for the peace of mind you have. Paying off one debt with another only ever ends in disaster.

Find a method of paying off debt that suits you, whether that’s paying off small debts first to build momentum, or putting money towards the bigger debts so you can avoid paying that interest.

You’re scared you might lose your job

If you’re terrified you might lose your job, it’s a sign that you feel unstable. You should have some money stashed away for peace of mind – the recommended amount is $2,000 at least. Saving more will help you to cover various expenses while you’re out of work and looking for another job.

You’re asking the people close to you for money

Asking people close to you for money will wreck your relationships in the long run. Ask them to help you to become better with money instead, by supporting you in getting the help you need.

You feel like you won’t be able to retire comfortably

Think ahead to retirement. How do you picture it? How would you like it to be? If you know you won’t be able to enjoy anywhere near your dream retirement the way you’re going now, this is a bad sign. You don’t want to be even more financially unstable by the time you reach old age.

Remember, it’s never too late to change your situation. If you know you need to do something about your financial problems, do it now.

Tell people close to you that you have a problem and that you need help. Contact the companies you’re in debt with and tell them. Cut up your credit cards. Visit a financial advisor. You can help yourself when you decide to make a change.

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