Three signs your money & finances are in trouble
The Detroit News was all cheer this week. Three signs of money trouble is not really a topic that many of us want to think about. We may not want to think about it, but the earlier we can spot the warning signs, the less in trouble we might get ourselves into.
A lot of money concerns are deeply troubling because we don’t address them early enough. We don’t talk about our finances, we ignore our bank statements and we try and pretend that everything will turn out alright if only we keep our heads down and don’t think about the trouble we’re in.
In reality, we’re only making ourselves more anxious. You know when you’re upset with someone and you stew and stew, only to confront the person in question about it and feel much better instantaneously? It’s the same with finances- unhappiness comes from inaction and feeling helpless. The more proactive you can be about fixing the problem, the happier you will feel.
So if any of these signs apply to you, get proactive and start improving your financial situation now.
Sign Number One: Emergencies would make you panic
We all know we should have an emergency fund, worth anywhere between 3- 12 months of expenses. We know it, and then we ignore it, and when an emergency happens we plunge into a debt that can leave you and your family financially shackle for a long time. If you don’t have one, that’s a pretty good indicator that your finances aren’t as well as they could be. Start saving and setting aside money for a rainy day. Rainy days are more common than we like to believe.
Sign Number Two: Month to month is a frightening prospect
Emergency funds aren’t just to protect you should your car break down and never return to the land of the living. They’re also there to pad you out should anything happen to your income. If you’re living so close to the wire that any disruption to income would mean it was hard for you to meet your monthly obligations, you need to have a good look at your spending and work out how you can fatten out your savings.
The last couple of years have proven that there is no job secure enough to be entirely relied upon financially. If you get less shifts for the next four weeks, could you pay your rent? If the answer is no, start saving now.
Sign Number Three: Minimum monthly repayments
If you’ve got a large amount of debt and you can only afford the minimum monthly repayments, you need to start tracking your spending and cutting down on expenditure. Firstly, you’re never going to get out of debt that way. Secondly, should the unexpected happen, you’re going to end up defaulting on a debt and being in serious Money Trouble Land.
It’s difficult to build up your emergency fund and your savings at the same time, but with a comprehensive household budget and a reevaluation of your spending habits, he extra money might appear without too much heartbreak. Once those steps are taken, it shouldn’t be too hard to get yourself out of trouble before you find yourself neck-deep in it.
What do you think are signs that your finances are not as healthy as they should be?
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