Everyone wants to be financially stable. We all want to have everything we wanted and everything we need. We don’t want money to be our problem, and that is possible especially if you’re hard-working. However, even if you earn a lot of money with your hard work but you act like a ‘One day Millionaire’ once you receive your salary and you don’t know how to save money for the future, then that will be your problem, you will be financially unstable.
If you wanted to determine if you’re financially stable or not, this might help you. We will provide warning signs to determine if you’re financially unstable. If you found out that you’re, don’t lose hope there’s still a chance to build a brighter future. There’s plenty of time as long as you’re dedicated there will be no problem.
Here are the Warning Signs to Determine If You’re Financially Unstable:
Being Broke After Paying Bills
Paying your bills is your responsibility. Ask yourself, do you feel broke after paying your bills? Even if you’re able to pay the full amount of your bills monthly, one sign that you’re financially unstable is when there’s nothing left for you after you pay. You should keep in mind that even if you pay bills there’s should always be left for you and that money that was left, you can put in your savings which will be beneficial in the future.
Borrowing Money From Relatives and Friends
The fact that you’re borrowing money from your relatives or friends indicates that you’re having a financial problem. So watch out! Borrowing from them one time is maybe okay, but making it a hobby, is not good anymore.
Regularly Borrowing Money
Budgeting your money is hard and what makes it harder is that when you have a tight budget. Having a tight budget may lead to borrowing money to cover your budget. There’s nothing wrong with borrowing money. However, you must be a responsible payor because you may not know what circumstances might happen. If you see yourself doing that it just means that you’re financially unstable.
No Emergency Fund
We all know that having an emergency fund is very important. The idea that you don’t have to worry about not having onhand money when there’s an emergency is a big relief because you have an emergency fund. That is why not having an emergency fund may be an indication of being financially unstable
Maxed-Out Credit Card
Having a credit card makes our life convenient but it can also be an indication if you’re still financially stable or not. Maxing out your credit card may be an indication that you’re financially unstable, what’s worst is that when your credit card is maxed out, the bank that issued your credit card may not allow you to make additional charges anymore until you pay down the balance and open up your available credit again. In addition, maxing out your credit card is making your credit score drop and that is not a good thing. Imagine not being able to pay your credit card, you must keep an eye on that.
Fantasizing About Having A Better Finances
It is not bad to dream about having better finances, because we all want that. It just varies on the person, some will do their best to have better finances but some do not. They just stay on dreaming and hoping but not even doing anything. That is considered as an indication that you’re financially unstable.
Avoiding Money Discussions
We all attend a family gathering or even a reunion with friends and most of us are proud sharing of what we became. Financial status is usually the first topic that everyone will share. Asking how you’ve been and up to how successful are you now. If you once avoid those kinds of topics or feel uncomfortable sharing. Maybe that is an indication that you’re financially unstable.
Paying Penalties For Late Payment
Paying penalties for late payment has many reasons. Maybe because of time schedule, availability of the person who will pay, etc. But if the reason for your late payment is that you don’t have money to pay it. That is a clear indication of being financially unstable. Accepting the fact that you need to pay for late fees and making it normal that is not a good thing. So, you must do something.
Postponing Payment of Bills
If you’ve ever allocated your bills from one month to the next month for you to make sure that all bills get paid that is an indication of being financially unstable. For instance, you will pay your electric bill one month, but hold your water bill until the following month. It means you’re having one bill extend you an informal loan for a month or so, and in exchange, you will pay a late fee. If this happens once, maybe that is alright but doing this on a regular basis is not acceptable anymore.
Being Unsure If You Can Pay Rental, Loan and Other Bills
Paying bills is the responsibility of every tenant, borrower, and user.
The uncertainty of being able to pay for those is a clear indication of being financially unstable. Think of the complications that might happen if you missed paying for your bills.
Not Being Able To Make Major Purchase
Postponing or eliminating a major purchase because you don’t have money is a sign of being financially unstable. For instance, you’re wasn’t able to buy parts to fix your car, your house, or even not being able to pay for a medical procedure. Yes, those things might be expensive but you will be able to pay for those if you have savings but if not then that will be the problem.
Knowing To Yourself You Won’t Be Able To Retire
Being prepared for retirement is very important because once you retire it is a must that you still have savings that you can use to provide for your daily needs. If you know to yourself that you have nothing once you retired then that is a big problem, you must do something while you’re still young.
All of the signs that were listed above was not intended to scare you, but this will serve as an indication that you need to strive harder to make your life successful. It is not embarrassing that you’re in that situation right now, what matters is that you’re doing your best to be financially stable.