The things you do with your money today affect your financial future not just tomorrow, but years down the road. The following are 4 signs that you might be headed down a bad financial road and how to make a change:
1. You don’t track your income or savings
If you don’t know how much you are bringing in and spending, you don’t really know what’s going on with your finances. In order to spend wisely and save money, you need to know that you’re spending less than you make. If you spend more than you’re making one month and less than you’re making another month, things might even out in the end, but you should still know how to budget. Budgeting makes it possible to spend less than you make and as a result save more money for your future.
2. You dip into your savings frequently
You might be a good saver, but if you’re dipping into your saving often to either pay bills or buy fun things that you want, you’re not truly saving money in the end. Continue saving money, but stop dipping into it to pay for things. If you are spending more money than you make each month, you need to adjust your spending.
3. You think being in debt isn’t a big deal
You might feel this way because so many people are in debt, but that doesn’t mean that it’s okay. In fact, being in debt can ruin your credit, which can make it hard or impossible to buy a home, a car, or even rent a place. Many places do credit checks to make sure you’d be safe to rent or sell to. If your history is not good, they can turn you down. The good news is you can fix your credit and get back on track.
4. You loan money and never get paid back
If you’re willing to loan money to people who have never paid you back, you’re a sucker. They know you’re a sucker, too, and that’s why they keep asking you for money. Whether it’s a sibling or a best friend of 20 years, if you loan someone money and they never bother to pay you back, stop lending them money. Yes, it will be hard to say no, but you need to protect yourself and your money.
Learning to be financially wise isn’t rocket science, but it will require creating new habits and learning to say no. Don’t fret though, once you see the results of your new habits, you’ll be motivated to continue on your new path.