What you do with the money today affects your financial future, not just tomorrow, but after many years. Below are four signs that you are on the wrong financial path and how you can make changes:
1. you are not keeping track of your income or savings.
If you do not know how much you give and how much you spend, you really do not know what is going on with your finances. To spend and save wisely, you need to know that you spend less than you earn. If you spend more than you earn in one month and less than you earn in another month, it may happen that in the end something will go wrong, but you still need to know how to make a budget. Budgeting means that you spend less than you earn, and thus save more money for the future.
2. often plunge into your savings.
You may be a good savior, but if you dive a lot into your piggy bank to pay the bills or buy the good things you want, in the end, you don’t really save. Save, but stop saving to pay for things. If you spend more money than you earn every month, you have to adjust your expenses.
3. Don’t you think it’s wrong to get into debt?
You can think that because you have so many people in debt, but that doesn’t mean it’s right. In fact, being in debt can ruin your credit, which can make it difficult or impossible to buy a house, a car or even a house. At many places, credit checks are done to make sure that you are sure that you are renting or selling. If your credit history is bad, they may reject you. The good news is that you can correct your credit history and get it back on track.
4. You borrow money, and you never get a refund.
If you’re willing to lend money to people who’ve never paid you back, you idiot. They know you’re a loser too, so they keep asking you for money. Whether it’s your brother, sister or 20-year-old best friend, if you lend money to someone and never interfere with their payment, stop lending money. Yeah, it’ll be hard to say no, but you have to protect yourself and your money.
Learning financial wisdom is not rocket science, but you will have to create new habits and learn to say “no”. But do not worry, when you see the results of your new habits, you will be motivated to continue your new way.