Finances a mess? If you’ve ever looked at your bank balance and vowed never to look at it again, had your card declined, had to borrow money from a relative, or all of those things, chances are you’re not dealing with your finances properly.
It takes strength to admit that your finances are a mess, and doing so is the first step to getting them back onto the straight and narrow. If you’re sick and tired of being in hot water financially, you need to know why it keeps happening to you. It’s all well and good taking the steps to fix the issue, but you’ll have a much better time dealing with it if you know why it keeps on happening.
Read on to learn more…
Finances a Mess? Here’s Why
You Haven’t Got A Budget Plan
Everybody should have a budget plan. Whether rich, poor, or in between, a budget plan is crucial to financial success. When you know what you’re earning each month, what your essential payments are and how much you have left over, you can start allocating money to specific categories.
For instance, food shopping, fuel, clothes, entertainment, and so on. If you’re spending too much money in any one area, then your finances will be out of whack for a while. It’s much better to have a budget plan rather than just wing it as you go along. You’ll think about purchases more carefully this way too!
It’s a good idea to note down everything you buy so you can accurately see how much you have leftover to spend. Even the smaller purchases! Those little coffees and magazines can soon add up. Some apps can do this for you, so make sure you take a look at them.
You Get Into Trouble
Do you often find yourself in trouble, with a friend having to bail you out of jail or perhaps hunting for drunk driving legal help? Maybe the trouble you get into isn’t all that extreme, but getting into trouble can still cost a lot of money. Breaking a bone while drunk equals expensive hospital bills. Having fun with your friends at the expense of others can mean getting in trouble with a vandalism charge. Think about what you’re doing and make sure you have your head screwed on.
You Spend Without Thinking About It
If you’re the kind of person who decides they want something and buys it right then an dthere, you may need to rethink this strategy. Nobody is saying you don’t deserve the finer things in life, but you should think carefully about purchases before you buy them.
If something is labelled as ‘sell out’ or ‘clearance’, it can be a clever tactic to make you feel the need to purchase right away, so do your best to think logically. Will buying this item truly add value to your life? Can you wait a while to think about it?
If you can give the purchase at least a couple of weeks breathing room, you’ll have a better idea of whether it’s a good idea to buy or not.
If you are completely honest with yourself and you can answer the question, ‘Are your finances a mess’ with the answer, yes, then stop spending more than you earn and use these tips to help you get out of financial trouble today.