Some people are great at managing their finances. They have everything down from planning and saving each month to sticking to their budget and living debt free. If you are not quite to that point yet, you may need to change a few things about the way you handle your finances. Here are nine signs that you need to change the way you handle your finances today.
1. Relying on Your Credit Cards
Running into the red may happen occasionally when you have to deal with an emergency situation, but if you find yourself stretched too thin and relying on your credit cards each month, it is time to make some real changes to the way you handles your money. The first step to solve this problem is to start with a solid budget. A budget can help you identify the areas where you are overspending, and other issues like not making enough to cover your necessities. If you can start budgeting now, you can quickly turn around your entire situation and stop using credit cards.
2. Late Payments
It happens. You forget to pay a bill now and then, but if you are consistently late with your payments, it’s a sign that something more serious is going on. There are two general reasons for late payments. One you are just forgetful, and you can solve this by scheduling your payments to come out automatically or pay all of your bills at once at the beginning of the month. Or two, you do not have the money to pay the bills on time. If this is the case, a budget and a some careful planning can usually help you pay all of the bills on time.
3. Sleepless Nights Worried About Money
If you lie awake at night worried about your finances or how you are going to cover expenses, it is definitely a sign that you need to change the way that you handle money. When you have a budget that you can stick to in place, and good emergency fund saved up, you will rarely find yourself worried about your finances, which means that you can rest easier. Take the time now to start making the changes you need to so you can sleep well at night.
4. No Communication with Your Spouse
Once you get married, budgeting gets more complicated. You can overspend without realizing it because you are both spending at the same time. It can be frustrating to merge two different styles of managing your money and many couples struggle wit this for several years in their marriage. The first step is set up a budget with your spouse, and then to have regular budget meetings that really work. If you can do this, you should be able to handle your finances in the future.
5. No Budget
If you are operating without a budget it is time to start. You need a budget even if you are great at paying all of your bills and not going into the red each month. A budget helps you focus your spending and work on your goals. This is a great goal to set for yourself and really it is the first step in taking control of your finances. If you really do not have a budget, you need to sit down and start working on one today. You can really change your finances with this one tool. If you do not have a budget, it is too easy to lie to yourself about your finances. You should create one today.
6. Overwhelming Amount of Debt
If you have an overwhelming amount of debt, you need to begin making changes today. You can take control of your situation and begin making changes that will help you turn your financial picture around. One of the best places to start is to read Total Money Makeover by Dave Ramsey or to set up a debt payment plan. Either way, you can pay off your debt with hard work and discipline.
7. Stuck in a Financial Rut
If you feel stuck because of your finances, it is time to make some changes. You may be fine paying, your bills all of the time, but you never seem to get ahead or take the next step. You can break free from your financial rut with a financial plan and a budget that works. Once you know what you want to do, it is a lot easier to motivate yourself to actually start doing it. Stop feeling trapped by your finances and start doing something to change them today.
8. You Run Out of Money Too Early in the Month
If you are consistently struggling at the end of the month to put food on the table or cover other expenses, you may have a cash flow problem. A budget like the envelope system of the YNAB budgeting program can help you work through the kinds so you do not spend all of the money each month right at the beginning. This is a simple fix and you may find that with just a few adjustments you can breathe a lot easier.
9. Every Bump in the Road is a Catastrophe
When you are struggling financially, paying for a car repair or a trip to the doctor can feel like the world is coming to an end. If you feel like this all of the time, then it is time to change the way you handle your finances. A budget and an emergency fund can go a long way to help put your mind at ease. Start by saving up a month’s worth of expenses and then work on getting out of debt. After that save up a year’s worth, and you will be able to handle whatever life throws at you. If you stop sabotaging yourself financially, you can begin to handle whatever life throws at you.
