Thursday, October 13, 2016
Trouble Ahead: Six Signs That You're Not Financially Secure
We all want to be financially stable and secure, but many of us aren’t. It’s easy to go through life without even realising what we’re doing wrong. But here are six sure-fire signs that you're not as financially secure as you should be.
1. You Have Zero Retirement Savings
One of the things that it’s easiest to ignore is the future. But saving for your retirement is vitally important. If you don’t have enough money to live comfortably when you retire, you’ll regret not saving earlier. So, if you have zero retirement savings, it’s time that you did something to change that situation. It’s a change that has to be made before it’s too late.
2. Finances Cause Arguments
If you and your partner often get into arguments over money, this is a sign that all is not well. Money can be the thing that breaks relationships, and you don’t want it to come to that. Because of how important money is and how damaging a lack of it is, it’s not uncommon for arguments to break out. You should speak openly and clearly with your partner when it comes to financial challenges.
3. You Have Too Many Credit Cards
Credit cards act as a crutch that many people rely on. When your entire financial situation is based on credit cards and paying them off at the end of each month, you have a problem. It might seem like an easy and convenient way to manage your money right now. But you might not think that way once your money is stretched more and you have difficulty making repayments.
4. You’re Too Reliant on Your Overdraft
Having an overdraft can help you when you’re in short-term financial trouble. But it’s not there for you to rely on it too heavily. You should learn more about bank overdraft, and then you will be able to use it better. When you are too reliant on it, you will find that you put less effort into balancing your budget, and that’s not a good thing. Once you start to use it right, your finances will become healthier.
5. You Pay Your Debts the Wrong Way
Being in debt is not a disaster in itself. Many people have debts and still manage to achieve financial security. What really matters is how you pay off those debts and how quickly you rid yourself of them. You should always focus on paying the smallest debts first. When you do this, you can minimise the number of debts and pay them off more quickly.
6. You’re Always Asking for Help
It’s not a bad thing to ask for help when you need it. But if you need it at the end of every month, then you’re probably doing something wrong. You should be thinking about what you can do to stand on your own two feet and not rely on other people to bail you out. Eventually, there’ll come a time when your parents or other family members can’t give you the financial support you need.