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9 Signs You Need Help with Money
However, after few minutes, you begin to panic on what has just happened to the calmness because you feel you are not financially balance again. You agree right? Even if you dispute that, I know you have seen some people whom you considered to be capable financially and all of a sudden (to you) they begin to be desperate on getting financially balanced because they are no longer capable. Yes, it only looks sudden to you but they have been given warnings and signs before they eventually went bankrupt.
The fact about them is that they might be ignorant of the signs or they arrogantly neglected it. No doubt, you do not desire the kind of fate as your portion. However, willingness not to have such fate is not enough except you act wisely towards it.
Now, let me be counterintuitive, have you ever taken some times to think about your earnings, type of cars you drive and other lucrative things surrounding you? Do you also consider whether they are the right things you ought to spend your cash on? The fact is that if you have not been doing that before, I believed you must have done that just now by mere reading this article.
But you still need to ask yourself afterwards and think deeply about it. I told you earlier that financial trouble does not just come from nowhere and many people you think are successful do not just become accursed or bankrupt overnight but everyone is at risk of this as long as proper precautions are not being taken. Especially, precautions against the signs that you need help with your money that you are about to know.
I will like to take you on a journey to this massive knowledge about the signs, just follow accordingly and do not skip any of the signs because any skipped sign may be the source of financial trouble. The following are the signs you need help with your money.
No doubt you are a step away from financial disaster when you discovered that whatever you earn either daily, weekly or monthly is usurped on other expenses. Savings are meant to cover for your emergency and building another fortune when it becomes handful.
What do you think will be your fate when you do not have savings then? It means you will firstly be wafting in one position and then one day an unforeseen emergency will arrive and you have no option than to source for loan which will lead you into another financial problem.
Even if you are able to manage the emergency without loan, there is no doubt you will not grow personally. You keep on driving the same vehicle for many years, living in the same rented apartment, eating the same quality of foods and no room for development no matter how little it is. Therefore, when you discovered you do not have savings, then, know that you need help with money.
It may be true that having budget is not compulsory but it is a sign that you are likely to have financial problem. It is only through budget you will be able to monitor what you really want to spend on and what you do not want to spend on. One thing about budget is that it may be made on long term or short term.
The shortest term advisable for a budget is daily budget and the longest advisable budget is yearly. As a business organisation you may decide your budget to be yearly and not necessarily calendar year but financial year or business year.
However, as an individual it is better to opt for short term budget especially as an employee or working class, monthly budget is preferable. I know you may have some excuses as an individual on not knowing how to develop a budget but it is quite easy and you can therefore learn it remotely. Remember, it becomes easier to have financial problem without budget and more difficult with a budget.
Higher Expenses, Lower Income
Financial term for having higher expenditure over income is known as loss. As a layman you know "loss" is not a good thing to desire for it. Therefore, the moment you discovered that you spend more than you earn then beware because havoc is wreaking.
You have to watch your spending in order not to go bankrupt because what higher expenses and lower income means is that before you receive your earning there are outstanding debt on ground to pay. Definitely as I eavesdropped you saying "the balance won't be enough for the month" is what happens to you.
So, you need to pay attention to this sign. In fact, ability to reverse the case to higher income and lower expenses helps you have more extra for savings and development.
Repaying Minimum Monthly Payment
There are some circumstances that may warrant getting a loan or overdraft and that is normal. However, when repaying the debt on your credit card, you should be wary if you are paying minimum monthly payment for the debt.
The fact is that it can happen sometimes that you pay minimum due to genuine reason for some months but you should not be consistent with such payment. Rather try the maximum and medium monthly payments more often.
The fact is that the earlier the better, I mean in settlement of your debt. When you repay whatever is in your credit card as fast as possible you save yourself from more exorbitant interest it attracts.
Consistent Use of Credit Card
The use of credit card is not supposed to be frequent in order to be free of financial trouble. Thus, when you discovered that you use your credit card more than you use your debit card then be wary of financial problem.
There are some bills you should avoid using it for, such as rent and utilities. When you use it more often, you will end up maximizing all your credit and eventually wallowing in debt which is not good for your financial balance.
Missing Out on Bill Payment
If you remember I told you earlier that you cannot just be paying minimum monthly payment on your credit card, then if doing that is considered bad, what do you think of missing it entirely.
The result is that, it takes more time to pay your debt and you have a lot of additional interest which could multiply the actual debt. You should for no reason think of it as an evasion, rather do quick in paying it. In fact, if it has to be minimum monthly payment, because half bread is better than none.
Habit of Borrowing from Family and Friends
It is not possible to say you should not seek support of your family members as well as your friends but do not misuse the opportunity at your own peril. When you become too dependent on them for every little thing and you start borrowing just because they find it difficult to refuse, you are likely to have problem financially.
The problem begins at the time of repayment of debts and if not well managed may affects your relationship with them. Even, if you relish the relationship so much that you want to protect it, you eventually have big hit on your money after the repayment.
Neglecting Bank Statement
One habit is peculiar with many individuals and some business owners, it is the habit of neglecting their bank financial statement at the end of the month. I bet you have done that so many times, that is, you see your bank statement in your email and you just mark as read whereas you did not even download it.
It is a sign you need help with your money. No matter how long it looks you need to check it. It helps you to confirm what you have actually done with your money for the month and rate your activities. In fact, it gives you clues on how to cut your expenses for the following month and maximize your income.
Evidence of higher expenses and lower income for the month is also recognized at earlier stage through it. Lastly, it helps in comparing to your personal cash book (record of cash transaction) for the month.
Thinking About Winding up or Bankruptcy
If you consistently think or consider going bankrupt due to your uncontrollable debt, then it is a major sign you need help with your financial activities. The best help you should seek at this moment is not to seek bankruptcy trustees' help but rather the help of credit counsellor.
The credit counsellor would rather help you figure out if truly bankruptcy is the best solution or you need an alternative. He will also avail you with alternatives that are better and rank them for you. However, bankruptcy trustees would rather help you in achieving the bankruptcy consideration than to provide you other options. When you discover you have that thought coming consistently, quickly seek help with your money.
There are other signs that you may be experiencing in relation to the need for help on money. The above signs are very direct and important to note in order to avoid any form of financial disaster. So, when you see any of these signs, then, make hay while the sun shines.