How to know when your personal finces are a mess

7
1.2K followers


Many Americans are flirting with financial disaster. A recent study by Northwestern Mutual, a Life insurer, found more than eighty percent of Americans are concerned about facing a financial emergency such as the loss of a job or an extended period of unemployment. Because so many people are wallowing in debt with many living paycheck to paycheck at least part of the time.

But there are some warning signs consumers can look for to help them determine whether their personal finances are becoming a mess.

National Debt Relief offers consumer tips on the five warning signs by which they can know if their finances are a mess.

  • You don’t know where your money goes.

The first sign that your finances are a mess is when you don’t know where your money goes every month. Some people feel that their funds just seem to disappear into thin air. The simple solution to this is that they should track their spending for a few months to have an idea where the funds are going. It will also help you to prioritize and be able to pay their debts better.

  • There are months when you can’t pay your credit card bill

The second sign that you could be in a financial mess is if you are already missing your credit card payments. People often overlook the fact that credit cards rates are often the highest of their payments and missing one-month payment could cause the following amount due to increase because of added penalties and fees. The solution is to pay the full amount each month and use your credit card responsibly by not making impulse purchases.

  • You buy things by cutting back on the necessities

Another sign that your finances are a mess is when you lose track of your spending priorities by spending on luxury items instead of the necessities. When you are having a hard time covering the basics because you spend on things that are nice to have then, you have lost track of your priorities. A budgeting system will solve this problem. You will need to list all your essential expenses such as housing, food, utilities, insurance savings, and transportation. Whatever you have left after you have budgeted for these items can go to your discretionary spending.

  • You don’t always pay your bills on time

When consumers are not able to pay not just their credit card bill but most of their bills on time, this is also a clear sign that they are in a financial mess. They are trying to perform a juggling act with their payments and missing every deadline along the way. The idea is to develop a budgeting system that would let them know ahead of time when a payment is due so that they will ample time to prepare to send out the payment.

  • You overdraw your bank account occasionally

Finally, your finances are a mess when you overdraw your bank account. Overdrawing your account is accompanied by an overdraft charge of thirty-three dollars, the average overdraft fee charged by banks. So, a cup of coffee at Starbucks that cost about three dollars could end up costing you almost forty if you overdraft your checking account. The remedy for this is to have your bank turn off overdraft protection.

Conclusion

These five signs are real indicators of whether your personal finances are worsening. If you recognize any of these signs, it is up to you to apply the fix so that your situation will not continue to deteriorate.

Login
Create Your Free Wealthy Affiliate Account Today!
icon
4-Steps to Success Class
icon
One Profit Ready Website
icon
Market Research & Analysis Tools
icon
Millionaire Mentorship
icon
Core “Business Start Up” Training

Recent Comments

6

Yep. That's me
1- I never know where it goes. I rarely even see it before it's gone.
2- I don't have a cc, but do have bills I can't pay
3- This I generally don't do. Only very rarely.
4- I am often late to pay, as I am waiting for money to arrive first
5- My bank account is almost always overdrawn.

So, yeah, my finances are about as bad as can be. Lol. Of course, we need to take into consideration that I have been unemployed for over 9 months, but still...

An extended period of unemployment is one of the things working people fear most. I hope you get back working soon. Thanks for your comments.

Thanks!

You are welcome

Good indicators of insolvency. thanks Danielle!

Thank you.

See more comments

Login
Create Your Free Wealthy Affiliate Account Today!
icon
4-Steps to Success Class
icon
One Profit Ready Website
icon
Market Research & Analysis Tools
icon
Millionaire Mentorship
icon
Core “Business Start Up” Training