A lot of times we can be completely unaware of flaws in the way we do things, even important things. Finances, are one of those important things.
I’ve written posts on how to handle your finances but today I’m writing on how to know if you need to make a change, because sometimes we don’t see it. Let me be the friend to help you figure it out. Then after, lets chat about where to go from here! ;)
Five Signs You Need A Financial Change
1. YOU ARE WORKING JUST TO AFFORD YOUR LIFE
We all have bills that need to be paid. However sometimes we let our bills become more than just our needs. If your bills are starting to multiply and grow in number, you need to start making some changes.
You don’t need an expensive date night every week, new clothes every other or to keep up on your nails. If you are working just to afford the type of life you are living, you are going down a molehill and you might just get stuck.
Instead try cutting back to the necessities with only a few indulges a month. Also, plan ahead for those indulgences and how much you can actually afford to spend on them! ;)
2. YOU HAVE DEBT THAT ISN’T GETTING PAID OFF
Being in debt is possibly one of the worst places you can be financially. Sometimes with school and house loans it can be unavoidable for a period of time, but it should be just that, a period of time. If you have continuing debt or debt that is just not getting paid off that is a big sign you need a financial change!
I’m a big fan of Dave Ramsey and even though Greg and I have never been in debt (being poor does have it’s upsides, you get school for almost free) I still recommend his system for getting out and staying out!
Instead of just letting the debt pile up or only attacking it if you get a lump sum of money (like a tax return) start chipping away at it now! Cut back and add the extra money to what you owe, get a second job or start a side hustle to make some extra money. Don’t let your debt just become part of your life or your finances. That is not a way to live and again a BIG sign you need a financial change!
3. ALL YOUR FUTURE PLANS ARE BASED ON YOU HAVING MORE MONEY
If you can’t see a future with the money you make right now you need to change how you are using/spending your money. For example, if you are wanting to buy a house but depending that on you making x amount money, you need to start thinking differently.
It’s not a bad thing to strive to earn some more money, but you need to learn how to manage, survive, and plan with the money you have now. Making more money will not solve your problems and you will continue to be in this cycle of never thinking what you have is enough.
Instead cut back now in order to have money for those future plans. Whether that is a house, car, savings for school, or even a fun trip. Then work towards a promotion or different job with more money if you’d like! Don’t make your future dependent on money. Learn to be content and survive with what you have.
4. YOU LOOK AT YOUR BANK ACCOUNT AND DON’T KNOW WHERE YOUR MONEY WENT
If you don’t know where your money is going that is a sure fire sign you need a financial change! If you are constantly saying to yourself, “It’s only x amount of dollars” when you go to buy something, I’m willing to bet you are overspending.
I get it, it’s so easy to do! A few times a week if you are out and about and you pick up an item for a couple of bucks it doesn’t seem like that big of deal. But when you multiply those couple of bucks times the multiple times a week, times the weeks for that month, well you get, “Where did all my money go?”
If this is something you are saying then it’s a sign you need to change something.
Instead budget out each category of spending and then actually keep track of how much you’ve spent of it! Decide how much you are willing to spend a month ahead of time, then when that money is gone at the end of the month you’ll know exactly where it went! Problem solved! ;)
5. YOU HAVE NO MONEY IN SAVINGS
The biggest “NO!” I can give you. This is the worst thing you can do for your finances and the biggest sign that something needs to change financially. Having a savings ranks higher than being out of debt for me.
A savings is your back up, your safety net, what helps to keep you above water when a storm comes. With a savings you don’t have to worry if you get sick and have to miss work, or if your car breaks down, or if you have to pay a copay at the doctors office. It is one of the first things you should build when you start making money!
I won’t go on because I went into detail about the importance of it in this post.
Instead learn how to build a savings.
I hope I’ve given some encouragement today and hit a few nails on the head for you. Somethings you don’t even think about until someone points them out, at least that is how it is for me!
What is your biggest financial obstacle that you deal with?
What was your sign that you needed to change something?
What are your financial goals for the new year?