Good money management doesn’t come easily to everyone. Hopefully, it’s something we get better at as we get older. However, certain circumstances and unexpected events can often make managing our money difficult from the offset, and once you’re on that slippery slope of debt and financial worry, it’s not easy to turn back. Speak to an expert at Creditfix as soon as possible if you have debts and money worries.
However, if you’re swimming against a rising tide of debt, yet you have a good job, it can be difficult to know where things are going wrong. The truth is, you could be bad at managing your money and not realise it.
Here we’ll look at the tell-tale signs that you’re bad at handling your money.
You don’t have a budget
The building blocks of money management is a humble budget. You can’t possibly know what you have coming in and going out unless you sit down and work out your incomings and outgoings. This means everything from your food budget, to your child’s school lunch money, your dry cleaning bill and your fuel expenses should be accounted for. The more detailed your budget the better you’ll be able to handle your money and keep yourself out of debt.
You’re always using your credit cards
Credit cards are great for those one-time purchases, where you can pay it all off in one go straight away. However, if you’re using your credit cards to pay for groceries, to pay your bills and to help you reach the end of the month, then something is going wrong. Essentially, you’re living beyond your means and this is a sign that you need to limit your spending and adjust your spending habits.
You don’t have an emergency fund
Are you honestly prepared for the unexpected? No one ever knows what’s around the corner, but when you have money set aside for a rainy day, you’re able to handle any financial emergency that comes your way. If you’re not managing your money properly and adding to an emergency fund, then if something unexpected happens, such as emergency repairs, illness or you lose your job, you may not be able to support yourself and your family.
You’re always paying late fees
When you don’t pay your bills on time and you’re missing financial deadlines, you’ll quickly find yourself drowning in a sea of debt, fines and late payment interest. This kind of poor money management means that you’re jeopardising your financial future and even putting your life on hold as you try to pay off what you owe.
And finally, you’re putting your head in the sand
If you know that you have financial issues, an outstanding bill, emails demanding money, phone calls from lenders or you’re receiving threatening letters and you’re refusing to acknowledge them or change your spending habits, then you need to work on handling your finances better. Keeping on top of your spending means you know what you have coming in and going out of your accounts. And the more financial confidence you have, the better your relationship with money will be.
