Money can be a tricky thing to deal with more especially when you are not careful with them. especially because working around it requires a lot of groundwork and research and information. For many of us, we have not had the opportunity to be part of financial classes or reading books on finance so that we can get enough evidence. This makes it much easier to fumble the bag, literally. What I have come to learn is that the world today offers us a universe of information where we can learn. We have no excuse for that, with all the knowledge and direction out there. Be careful though, and always make sure that you are absorbing credible information.
When you experience a financial disaster then always remember you are running into difficult financial situations, your financial situation spirals out of your control. In a financial crisis. you find yourself in an unsustainable financial lifestyle and your level of strength is always below average, whereby your debt far outweighs your income and so you stand to lose assets any time daily. Here are some of the signs that you are headed for this financial disaster.
1. If you are continuously unable to pay your bill on tile
Bills are an inevitable part of life. To survive, you need essential services such as water and a place to live. Then there are wants and luxuries like internet access. If you find that you are continuously unable to pay these and other bills on time, then you may be headed for a financial crisis.
2. You are spending more than your earnings:
If you spend more money than you’re earning, then this is not a good sign and in the end, it will cause a lot of debt. Why? Because first, it is an indication that you are handling way too much liquid money. Secondly, it means that in the long run, you can squeeze your accounts dry. Some people try to avoid this reality by adding their debts to their mortgage, car loan, or line of credit. Unfortunately, this will only help you if you solve the problem that got you into debt in the first place. You have to make some changes in your budget so that you will spend less than you make. Otherwise, you are only delaying the inevitable.
3. When you don't save:
Everybody needs savings. Whether it’s for an emergency fund. there is no doubt about this. If you find that you have no savings at all, your finances are headed for trouble.
4. When you are dipping into your investment or retirement funds:
If you find that to survive you need to dip into your investments and assets, then you are headed for financial trouble. Why? Because just how deep down these pockets can you dig before they become empty? Stealing from your future is a good sign that the present is shaky. Ao, you must be keen on your investments.
5. When you are borrowing to pay your bills:
If you are borrowing money to pay your bills then you are in trouble, then first, you are spending more than you earn. This is a sign that you need to do two things. First, you need to increase your stream Of income, and second, you need to reduce your expenses. But now your good intentions have taken on a dangerous life of their own as you still struggle to make ends meet. Stop the cycle as soon as possible and find a way to balance your expenses with your income.
6. When you rely on one-time financial events:
If you find that you are waiting for a one-time financial event, such as inheritance, a big tax return, or winning the lottery, then it is important to arrange your finances so that your situation is without the need for periodic injections of extra income just to benefit from them.
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