Bad financial management is a result of bad habits and bad decisions when managing economic resources that lead us to have problems. It is for this reason that we are interested in addressing 5 signals that are indications of a bad personal financial management , in order to try to solve them before they cause you difficulty in managing your money.
1.You don’t know how much money you have
It usually happens that we go out for fun or shopping, probably without a list and without knowing exactly what we want to buy. At the moment of arriving at the cashier or having to pay, we usually do not reach the money and we have to use a debit card or credit card. When that happens it means we are spending without planning and you may not have a follow-up of how much money goes out of your account.
When you go out to spend money if you do not have an estimated budget you can incur debts or end up spending money that was planned for other financial responsibilities.
2. You have to choose your payments
It may be the case that when the invoices of the services and the card arrive you realize that the money is not enough to cover all the accounts. Before this situation, payment priorities are established and what to pay based on the sum or interest must be chosen. Keep in mind that there is always a risk that if they are services, they make a cut or increase the interest on payments.
This can happen for lack of a personal financial administration, where you can see that if you save on whims or go out for fun you make sure you have enough money to face other financial responsibilities.
3. You pay the card fees out of term on a regular basis
If you buy with credit cards, always try to pay all the fees and if once you do not arrive, try to pay more than the minimum. Otherwise, you will only be paying interest and never pay off your debt.
4. You ask for loans to make ends meet
If you need to apply for a short-term cash loan to cover daily expenses because the salary is not enough for you, you may have to review your financial situation. How long can it happen until you run out of money back and you have to pay the loan? Maybe the solution is to cut expenses or find another income Devin Lettermen.
We must resort to a loan in a situation where we have economic planning and we know that we will be able to return the requested money without inconvenience.
5. Purchase basic necessities with credit card
If you buy basic necessities with a credit card, it means that you are spending more than you earn and that you will not be able to cancel the entire outstanding balance at the end of the month.
If you recognize these signs, you should consider making certain changes, even to the point of changing your lifestyle in order to avoid serious financial problems .
We hope you found this article useful!